NVPS Seeking Two Ballot Initiatives In November

Ballot Initiative - Vote yes or no

02 Oct NVPS Seeking Two Ballot Initiatives In November

November 6 Ballot Initiatives

All information on the November ballot initiatives contained herein is provided for informational purposes, and was paid for by Northview Public Schools.

Proposal 1 – “Headlee Restoration”

This proposal is referred to as a “Headlee Restoration,” because it’s related to the Headlee Amendment to the Michigan Constitution. The amendment decreases the amount of mills a district can levy, or collect, when property values increase faster than the rate of inflation. The district is asking voters to restore the maximum tax rate of 18 mills on non-homestead properties only—not primary residences.

 

Proposal 2 – Sinking Fund

This proposal allows the district to take advantage of a new law allowing sinking funds to be used to pay for security and technology. The new sinking fund would replace the district’s existing fund, and the money would be used to construct new secure entrances at Northview schools, beginning with Crossroads Middle.

 

Frequently Asked Questions

 

WHO PAYS THE OPERATING MILLAGE?

The operating millage is levied on properties that do not qualify for the Michigan homestead exemption (non-homestead properties). Primary residences qualify for the homestead exemption and, therefore, do not pay this 18 mill tax.

WHAT IS A NON-HOMESTEAD PROPERTY?

A non-homestead property is any property that is not a primary residence or qualified agricultural property, such as a business, investment property, vacation home or rental property.

IS THIS A NEW TAX?

No. This millage has been in place since 1994 with the passage of Proposal A. The voters last approved a levy for 18 mills on non-homestead property in November 2014. The current millage expires with the 2027 tax levy.

WHAT IS THE HEADLEE AMENDMENT AND HOW DOES IT AFFECT ME?

The Headlee Amendment of 1978 changed the Michigan Constitution. At that time, real estate was increasing in value faster than the rate of inflation. So when taxing entities (cities, townships, states, etc.) calculated property taxes based on property value, they would collect more than the increase in inflation. The Headlee Amendment automatically “rolls back” the millage rate to equal the rate of inflation in order to keep taxes from increasing more than inflation.

WHY IS THE DISTRICT ASKING FOR THIS AUTHORIZATION?

For the 2018 tax year, the value of non-homestead properties in Northview has increased at a rate greater than inflation, which has caused the millage to be reduced. The non-homestead millage is an important portion of the state’s per-pupil foundation allowance and must be collected locally. The state calculates the amount the district should receive based on the voters levying the full 18 mills. If the millage has been reduced, the district’s State Aid Foundation allowance is reduced based on not levying the full 18 mills. During the 2018–2019 school year, that reduction amount will negatively impact the district budget by $75,575. The district is seeking community support for a Headlee Restoration” operating millage to restore the non-homestead operating millage to the full 18 mills in a timely manner. This authorization will expire with our current non-homestead operating millage in 2027.

WHAT IS A “HEADLEE RESORTATION?”

A “Headlee Restoration” is a vote to “override” or counteract the effects of the Headlee rollback. In other words, this would restore the district’s maximum allowable millage. On July 23, 2018, the Board of Education approved a 2.0 mill Headlee Override on the non-homestead operating millage because the millage has been Headlee reduced to 17.5466 mills. The authorization of the 2.0 mill override will allow the district to levy the full 18 mills on nonhomestead properties during the 2018 tax year. At no time is the district permitted to levy more than 18 mills on non-homestead properties.

WHAT HAPPENS IF THE MILLAGE DOES NOT GET VOTER APPROVAL?

Failure to authorize the operating millage proposal would decrease our state School Aid Foundation allowance by approximately $23 per student. Michigan will not replace the lost funding due to voter’s non-approval. Cost to Primary Residences: $0 This operating millage proposal will allow the district to levy the full 18 mills on non-homestead property. If approved, homeowners will not see an increase in their property taxes. This millage proposal will not change the taxes on your primary residence. This is not a new tax. It is a proposal to restore the district to the full 18 mill assessment on non-homestead properties, which directly impacts the amount the district receives from the state School Aid Foundation allowance per-pupil.

For More Information

To have specific questions answered or to obtain more information, please contact Superintendent Scott Korpak at 616-363-6861 or by email at SKorpak@nvps.net.

 

All information on the November ballot initiatives contained herein is provided for informational purposes, and was paid for by Northview Public Schools.