New, Renewal, and Replacement Levies
When a levy gets voted on, it is done so in 3 ways. First is
a new levy. This puts new millage on top of what exists currently. This will be
added money to your current taxes. Secondly is a renewal. This continues what the
original levy set forth to collect by the original levy, except for new
construction value. It will not collect any new money. Thirdly is a replacement
levy. This can replace the millage and replaces the amount to be collected
based on the values of that year. This allows that millage to collect more
money and also will not qualify for rollbacks if the previous levy did qualify
for them.
Understanding Millages
There are 2 groups of millages that go into creating your
tax rate. First is the “inside millage”, which is up to the first 10 mills and
is non-voted. Secondly there is the “outside millage”, which is what is voted
on.
The inside millage is set by the county and is up to 10
mills. These mills are affected by the changing values every year. The amount
of monies collected by these levies adjust with the change in value.
The outside millage is set by the levies that are voted on.
There are 2 types of levies that can be voted on, Fixed Sum and Fixed Rate.
Fixed sum or “Bond” levies are set to generate a specific
amount of money. The Budget commission reviews and sets the tax rate for these
levies so they comply with the amount of money required by that levy. If the
values increase, the tax rate would need to decrease so no new taxes are
created. If the values decrease, the tax rate would increase to collect the
money needed by that levy
Fixed rate levies are the most common type of levy. The
millage is set by the voted in levy and generates monies based on the values of
that said year. These levies only get new monies when there is new
construction. Any change in values from reappraisal or updates do not get
collected and creates the reduction factor.
All levy information is submitted to the state for approval.
The State then assigns the tax rates for each taxing district.
