Final facts about non-homestead millage

Clarkston Schools are asking voters to approve a 19.2491 non-homestead millage for 10 years on May 2.
Before voting, here is some important information.

What is non-homestead millage?
Simply put, non-homestead millage is a property tax. Millages are tax rates levied against the value of certain properties that are measured in tenths of a cent. For every mill levied, one dollar of tax is paid for every $1,000 of property value. The estimated value of the millage proposal by Clarkston Schools is $7.9 million. That number figures in the millage rate of 18 mills being collected at a time on property value.

What does non-homestead mean?
Non-homestead refers to the type of property to which the tax is applicable. Non-homesteads are any property not used as the owner’s primary place of residence. This includes second and vacation homes, rental homes (because the resident is not the owner), and both commercial and industrial business properties.

Who pays non-homestead taxes?
Anyone who owns property within the school dsitrict that is not their primary residence. These property owners pay the tax regardless if they are a resident of the community or not.

Who is allowed to vote on a millage?
Anyone who lives in the communities in which the funds are collected. Regardless if someone is a non-homestead property owner in the community or not, they can vote on a millage proposal.

What does the money pay for?
Unlike bond issues, taxes collected on non-homestead property are not designated for specific purposes by law and make up a percentage of a school’s general funding. Millages are a local source of funding for public schools because they come from the same area in which the schools are located. Other sources for funding include state and federal funds, to which other laws and restrictions apply.

What is the most a district can collect?
The dollar amount is undetermined, but is always based on property values. Schools cannot collect more than 18 mills at a time because of Proposal A. However, the district can and is asking for a higher rate than the amount they can collect.

Why ask for a higher rate if they can only collect 18 mills?
The Headlee Amendment requires that a millage rate decrease in areas where property values rise faster than the rate of inflation. The additional 1.2491 mills, though they cannot be collected, are reduced by the effects of the Headlee Amendment. This acts as a buffer zone so a district can continue to collect 18 mills despite the Headlee Amendment.

Who determines length and rate?
The school board develops ballot language to suit a proposal they agree upon. This language establishes both the millage rate and how many years the tax will be levied. The ballot is then turned over to voters in the community who give the final approval or dismissal. .

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