FAQs About LAS Operating Millage Assessment

We received the following information from Lowell Area Schools regarding a millage request that will be on the November ballot.

On Tuesday, November 8, 2022, voters in the Lowell Area School district will be asked to vote to restore the 18 mill operating levy. This tax is levied only on “non-homestead property” which includes all taxable property other than principal residence, qualified agricultural property and certain other property classifications. Most non-homestead property taxes are levied on industrial, commercial, business and rental properties, as well as second homes. This tax does not affect the millage rate on owner-occupied primary residences. Voters approved a similar renewal in November, 2016. The millage is again expiring and requires voter approval.

What is the impact?

This is a restoration of an existing millage that school districts are required to ask their communities to vote on in order to receive their full foundation allowance. If the renewal is not approved the state will not make up the difference in the revenue loss. The state expects the district to levy all 18 mills. With the passage of this election, the revenue generated for Lowell Area Schools would equal approximately $3,728,113 in 2023.

What is an operating millage?

It is not a tax on primary residences. It is known as a “non-homestead operating tax” since primary residences are exempt from the tax. In general, most school districts must levy a local property tax of 18 mills on non-homestead property such as industrial, commercial, business, rental and second homes in order for the district to receive its full per-pupil funding from the State of Michigan. This operating millage helps fund the day-to-day functions of the school district.

Is this a new tax?

No. This proposal is a restoration of the expired non-homestead property tax last approved by the voters in 2016.

Will property tax rates increase?

No. Your primary residence tax rate will remain the same. In fact, for both homeowners and businesses alike, nothing will change. Homeowners do not pay this tax and businesses will simply continue to pay a tax they have already been paying.

Do businesses in other districts pay this operating tax?

Yes. Regardless of which school district a business may be located within Michigan, in order for a school district to receive its full funding from the State of Michigan it must levy its operating millage.

Can the district use bond/sinking fund dollars to cover the loss in revenue if the millage does not pass?

No. These funds are restricted by law to building and site projects and cannot be used for general fund expenditures such as staffing, textbooks, classroom supplies, or to operate our school buildings.

Why do we need an election?

The operating millage is required by Proposal A (the state’s school funding structure), in order for the district to receive its full funding. The law does not allow the 18 mills on non-homestead property to be levied unless it is approved by voters in an election. The video at this link explains how public school districts are funded in the State of Michigan.

Who is eligible to vote?

Registered voters living in the Lowell Area School district boundaries are eligible to vote. You can register to vote at the Secretary of State’s offices and city clerk offices. The last day to register to vote, other than in-person, is October 24, 2022.

Where do I vote?

Voting takes place at the same location as national and state elections. You can find out where to vote HERE.

What will the ballot look like?

 

LOWELL AREA SCHOOLS

OPERATING MILLAGE RESTORATION PROPOSAL

(EXCLUDING PRINCIPAL RESIDENCE AND OTHER EXEMPT PROPERTY)

This proposal will restore and extend the authority of the School District to levy
the statutory rate of 18 mills against all property, except principal residence and
other property exempted by law, required for the School District to receive its
revenue per pupil foundation allowance. The original authority of the School
District to levy 18 mills has been rolled back to 17.0241 mills by the “Headlee”
amendment to the Michigan Constitution of 1963, and will expire with the 2022
tax levy. This proposal would restore and extend that authority, and would also
increase the authority by 0.9759 mills to restore millage lost as a result of the
“Headlee” amendment.

Shall the constitutional limitation on the amount of taxes which may be assessed
against all property, except principal residence and other property exempted by
law, within the school district of Lowell Area Schools, Kent and Ionia Counties,
Michigan, be increased by 18 mills ($18.00 per $1,000 of taxable valuation) for a
period of six (6) years, 2023 through 2028, inclusive, to provide funds for school
operating purposes (estimated to provide revenues of approximately $3,728,113 in
2023)?

YES □
NO □

2 Comments

  1. It’s not a typo. The Operating Millage Assessment is expiring, so it will be zero. To reinstate it, they were required to use the term “by 18 mills.” People who vote yes are simply restoring the rate that currently exists. LAS addressed this on their FB page today.

  2. There is a typo on the ballot. Towards the end of the verbiage it states that the it will be increased by 18%. I doubt if this will pass as written.

Leave a Reply

Your email address will not be published.


*