On Tuesday, May 2, 2023, voters in Columbia School District will be asked to vote on an operating millage tax levy.
The levy applies only to industrial, commercial, business, rental, and second homes and does not affect the millage rate on owner-occupied primary residences.
The non-homestead operating tax levy raises more than $4.8 million each year and represents about 24% of the district's General Fund budget.
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 the non-homestead property such as industrial, commercial, business, rental, and second homes 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.
What is a non-homestead property?
A non-homestead property is any property that is not an owned primary residence. Examples of non-homestead properties include vacation homes and industrial, commercial, business, investment, and rental properties.
What is a "mill?"
A mill is $1 for every $1,000 of taxable valuation on a property.
Is this a new tax?
No. This proposal would be a reauthorization of the non-homestead operating millage last approved by voters in November 2018. The duration requested for the reauthorization is two years.
Will my property tax rates increase?
No. Your home property tax rate would be unaffected because this tax does not apply to primary residences. Businesses would continue to pay this operating millage that they’ve been paying since the passage of Proposal A in 1994. A person’s owned principal residence (and other qualified properties) is exempted by law.
What is the impact?
This is a restoration of an existing millage that school districts are required to ask their communities to vote on to receive their full foundation allowance. The state expects the district to levy all 18 mills. If the renewal is not approved, the state will not make up the difference in the revenue loss, which will equal approximately $47,781 in 2023.