Renewal Millage on Ballot Nov. 7th

Non-Homestead Tax & Headlee Override Part of School Funding
Posted on 10/03/2023
Non-Homestead Tax & Headlee Override

ARTICLE UPDATE:

Thank you, Bedford Voters, for passing the Non-Homestead Tax and Headlee Override Propositions! We appreciate your support of education in our community! 

Information About the Non-Homestead Tax and Headlee Override Propositions on the Ballot

School districts receive funding from the Non-Homestead Tax because Proposal A, which passed in 1995, changed the way school districts in Michigan are funded. The bulk of the funding comes from state sources but up to 18 mills can be collected locally with the Non-Homestead Tax to reach the full Foundation Allowance allowed by law. The state of Michigan assumes 100% of the Non-Homestead Tax is collected based on a levy of 18 mills. Funds not collected are not made up by the state when allocating monies to the schools for educational purposes.

At that time, every school district had to go to the voters to get this passed to receive the revenue. The Non-Homestead Tax must then be renewed periodically. We are grateful that the voters in Bedford Township have continued to be supportive and renewed this critical funding source each time it has come back up over the last 25 plus years. On November 7, 2023, this renewal will once again appear on the ballot for voter consideration to extend this revenue source for Bedford Public Schools for another 10 years.

This is a critical source of funding for day-to-day operations in our schools. This local millage revenue accounts for nearly 10% of the operating funds that Bedford Public Schools receives each year and generates $4.4 million annually. These funds directly impact the education of the children in our community.

Chart showing Non-Homestead Tax providing 8.97% of BPS revenue

Chart showing how Non-Homestead revenue adds to State's Foundation AllowanceTHIS IS NOT A TAX INCREASE.

This is a renewal of an existing tax.

 

WHO PAYS THIS TAX?

IT IS NOT A TAX ON YOUR PRIMARY RESIDENCE.
Homeowners will NOT see an increase in their taxes on their own home, nor will they see a decrease if it doesn’t pass. The 18-mill non-homestead tax is levied on all commercial, industrial and rental properties, vacant land and vacation homes located within the school district’s boundaries. It is NOT a tax on a person’s primary residence, qualified agricultural properties or qualified forest properties.

THERE IS NO IMPACT ON THE PROPERTY TAXES FOR YOUR HOME.

IF THIS PASSES, TAXES WILL NOT GO UP ON YOUR HOME
Normal school operations continue.

IF THIS FAILS, TAXES WILL NOT GO DOWN ON YOUR HOME
School operations will be affected by the reduced revenue. 

WHAT IS THE HEADLEE OVERRIDE?

The purpose of the 1-mill Headlee Override would be to restore funding to the maximum level of the voter-approved 18-mills if fluctuations in property values effectively lower that millage’s collection rate. It is meant to be a safeguard to ensure a reliable funding stream for school districts and avoid adverse effects on their budgets.

 

BALLOT LANGUAGE

These companion renewal proposals provide the local revenue contributions to reach the full Foundation Allowance available for funding the operations of our local schools. This is how the Non-Homestead Tax (Proposition A) and the Headlee Rollback (Proposition B) will appear on your ballot:
PROPOSITION A
OPERATING MILLAGE RENEWAL PROPOSITION EXEMPTING PRINCIPAL RESIDENCE AND QUALIFIED AGRICULTURAL PROPERTY

This millage will allow the school district to continue to levy not more than the statutory 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 18 mill limitation ($18.00 on each $1,000 of taxable value) previously approved by the electors which may be assessed against all taxable property except principal residence and qualified agricultural property as defined by law, in Bedford Public Schools, County of Monroe, State of Michigan, be renewed and thus continued for Ten (10) years beyond its scheduled 2023 expiration, for the years 2024 to 2033, inclusive, to provide in part the funds to operate and maintain the school system? 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 $4,431,655 from the local taxes authorized in this proposal. The proposed millage is a renewal of a previously authorized millage of 18 mills.

PROPOSITION B

OPERATING MILLAGE RENEWAL PROPOSITION EXEMPTING PRINCIPAL RESIDENCE AND QUALIFIED AGRICULTURAL PROPERTY

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. The levy authorized by this proposition is conditioned upon voter approval of the levy authorized by the voters under Proposition A, Operating Millage Renewal Proposition Exempting Principal Residence and Qualified Agricultural Property.

Shall the limitation on the amount of taxes which may be assessed against all taxable property except principal residence and qualified agricultural property as defined by law, in Bedford Public Schools, County of Monroe, State of Michigan, be increased by 1 mill ($1.00 on each $1,000 of taxable value) for Ten (10) years beyond its scheduled 2023 expiration, for the years 2024 to 2033, inclusive, to provide in part the funds to operate and maintain the school system? This millage will restore, up to 1 mill, any Headlee Reduction during the years 2024 through 2033. 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 $264,203 from the local taxes authorized in this proposal.

 

Polls will be open from 7:00 am until 8:00 pm on November 7, 2023.

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