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Recently our Board of Education approved a resolution authorizing a proposal that will appear on the November 7, 2023, ballot as the Headlee Override Proposition.
The following is the ballot language:
Headlee Override Operating Millage Tax Levy
This millage will allow the school district to continue to levy not more than the statutory maximum rate of 18 mills on all property except principal residence and qualified agricultural property required for the school district to continue to receive its full revenue per pupil foundation allowance.
Shall the limitation on the total amount of taxes which may be levied against all property in Carman-Ainsworth Community Schools, County of Genesee, State of Michigan be increased by and the board of education be authorized to levy not to exceed 2.3490 mills ($2.3490 on each $1,000 of taxable valuation) for a period of twenty (20) years, 2024-2043, inclusive, to provide in part the funds to operate and maintain the school system. This is a restoration of any Headlee Reduction through 2043. It is estimated that the revenue the school district will collect, if the millage is approved and levied in the 2024 calendar year, shall be approximately $1,859,350; revenues from this millage will be disbursed to Carman-Ainsworth Community Schools.
What does this mean?
- This proposal only affects non-homestead property, not your primary residence.
- The district is asking to restore the operating millage to the original statutory maximum rate of 18 mills through 2043; due to the Headlee Rollback, the millage is currently at 17.6510. The district has lost approximately $750,000.00 in revenue due to the Headlee Rollback over the past six years.
- A “Headlee Rollback” usually occurs when non-homestead property tax values increase more than the rate of inflation. As a result, the millage rate is “rolled back” i.e., reduced.
- A “Headlee Override” is a vote by the electors to return the millage to the amount originally authorized and is necessary to offset the effects of the “Headlee Rollback.” This vote is NOT for an increase, but a return to the original rate authorized by voters.
- The district is asking for a Headlee Override Operating Millage of 2.3490 (17.6510 current rate + 2.3490 proposed amount = 20 mills). The additional 2 mills will allow for future Headlee Rollbacks. Statutorily the district is only authorized to levy a maximum of 18 mills.