Vote

Operating Millage Renewal Proposal on Non‐Homestead Properties


Cost to the Homeowner:   $0

 This operating millage renewal will allow the district to continue to levy 18 mills on non‐homestead property. If approved, homeowners will not see an increase in their property taxes. In other words, this millage renewal will not change the taxes on your primary house in which you live. This is not a new tax.  It is a proposal to continue the existing 18 mill assessment on non‐homestead properties.

Frequently Asked Questions:

 

Who pays the operating millage?

 The operating millage is levied on properties that do not qualify for the homestead exemption. This represents industrial, commercial, and some agricultural properties and second homes.  Primary residences qualify for the homestead exemption and, therefore, do not pay this 18 mill tax.

 I thought schools no longer received funding through property taxes, so why is there a millage renewal?

 Funding for school districts changed significantly in 1993/1994 when Proposal A was passed by the Michigan voters.  Under Proposal A, the State pays the majority of the cost, but to receive full funding, Pine River Area Schools must levy 18 mills locally on non‐homestead property in their district.

 Is this a new tax?

 No. This millage has been in place since 1994. The District was given voter approval to continue to levy 18 mills on non‐homestead property in August of 2016.  The current millage expires with the 2022 tax levy. The District is requesting a 7-year renewal.

 Will my residential school taxes increase too?

 No.  This tax is on non‐homestead property and does not apply to your primary place of residence.  The tax is levied only on commercial (businesses), some agricultural, vacation and rental properties. 

 What happens if the millage doesn’t pass?

 The revenue generated from the 18 mills on non‐homestead property equates to approximately $2.25 million, or about 22% of the District’s total annual budget. Failure to renew the operating millage would change our state school aid foundation amount and we would not receive the $2.25 million.  The State  will  not  replace  the  lost  funding  and  the  District  will  be  forced to  reduce  or  eliminate instructional and support programs for our students to offset the reduction of revenue.  Pine River Area Schools’ voters have never turned down the non-homestead, operational millage.

 How are Michigan school districts funded?

 Districts receive most of their funding on a per-pupil basis.   Pine River Area Schools receives the state minimum and we are funded primarily from two sources: 1) local revenue - 18 mills collected on non‐homestead property and 2) state revenue. A smaller portion of operating revenue comes from local, county, and federal revenue.

 Please VOTE Tuesday, November 2