Kelloggsville seeks renewal of non-homestead, impacts businesses, second homes

By Joanne Bailey-Boorsma
WKTV Managing Editor
joanne@wktv.org


The renewal of the 18 mills will support Kelloggsville’s day-to-day operations . (WKTV)

Residents in the Kelloggsville Public School District are being asked to renew the district’s non-residential (non-homestead) operating millage, which would generate about $3.7 million or 13% of the district’s annual operating budget.

“The operating millage provides critical funds to support the day-to-day operations of our schools, including, but not limited to staffing costs, instructional programs, instructional materials, transportation and maintenance,” said Kelloggsville Assistant Superintendent Eric Alcorn.

The proposal would renew taxes on business properties and second homes. It would not cost the owners of a primary residence any additional taxes.

If approved, the proposal would allow the district to continue to levy its full 18 mills and restore millage lost by the reduction required by the Headlee amendment to the Michigan Constitution. 

Headlee Amendment

Passed in 1978, the Headlee Amendment created a process for the reduction of mileage rates (the Headlee Rollback) to ensure that total municipal tax revenue could grow only at the rate of inflation, plus new construction.

In 1994, Michigan voters approved Proposal A that structured public school funding as six mills on all properties and 18 mills on non-residential properties, such as second homes and businesses. Voter approval is required for a district such as Kelloggsville to levy the full 18 mills on non-residential properties.

Failure to authorize the operating millage proposal would decrease Kelloggsville’s state School Aid Foundation allowance by an approximate $3.7 million dollars. The State of Michigan will not replace the lost funding due to a non-approval.

Kelloggsville voters reauthorized the non-homestead millage in 2021 for two years. The May 2 proposal would reauthorize the millage through 2025.

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