Non-Homestead Millage


Operating Millage Renewal Proposal

Please VOTE Tuesday, November 6


Cost to the Homeowner: $0


The operating millage renewal will allow the district to levy 18 mills on non-homestead property.  If approved, homeowners will not see an increase in their property taxes.  This millage renewal will not change the taxes on your primary residence.  This is not a new tax. It is a proposal to continue the existing 18 mill assessment on non-homestead properties which directly impacts the amount the district receives from the state School Aid Foundation allowance per-pupil.



    • The non-homestead tax levy is the 18 mills levied against properties that are not “homestead exempt,” i.e., any property that is not a primary residence.
    • The non-homestead taxes are collected locally; however, they are a portion of the state per-pupil foundation allowance.
    • The non-homestead tax levy raises approximately $3,359,489, or $2,537 of the CCS $7,871 per-pupil foundation allowance.  The remainder ($5,334) of the per-pupil foundation allowance is received from the state via the School Aid Fund.
    • Currently the non-homestead tax levy has been reduced to 17.79 mills.  Therefore the district is losing 0.21 mills of non-homestead funding for the per-pupil foundation allowance.  The state provides the remainder of the per-pupil foundation allowance from the School Aid Fund; however, they assume the district is levying the full 18 mills.  The reduction of 0.21 mills is approximately $40,980 in 2018-19, or $30.95 per pupil.
    • The proposed renewal is for 4 years (2018 - 2022).
    • On the ballot will be a request to increase the current tax levy from 17.79 mills and return it to the full rate of 18 mills.
  • If the non-homestead renewal is not voter approved, the district would lose $3,359,489 in funding for the general fund, which would require significant reductions to educational programs and services.


Frequently Asked Questions:


Who pays the operating millage?

The operating millage is levied on properties that do not qualify for the michigan homestead exemption. In our district this specifically represents commercial properties and second homes. Primary residences qualify for the homestead exemption and, therefore do not pay this 18 mill tax.


Is this new tax?

No. The millage has been in place since 1994 with the passage of Proposal A. The voters approved a levy for 18 mills on non-homestead property in November 2012. The current millage expires with the 2018 tax levy.


What happens if the millage does not get voter approval?

Failure to renew the operating millage would decrease our state school aid foundation allowance from the current amount of $7,871 per pupil to a much lower $ 5,334 per pupil.  The revenue generated from the 18 mills in non-homestead property totals approximately $3.3 million annually. The state of Michigan will not replace the lost funding due to voters’ non-approval, and the district will need to continue to make further reductions on programs and services to offset the reduction of revenue.  


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, state, 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.


What is Headlee Override?

A headlee Override is a vote by the electors to return the millage to the amount originally authorized via charter, state statute, or vote of the people and is necessary to counteract the effects of the headlee rollback. On November 6, 2018, the Board of Education is proposing a 0.50 mill Headlee Override on the non-homestead operating millage because the millage has been Headlee reduced 17.79 mills.  The renewal of the 0.50 mill override will allow the district to levy the full 18 mills on non-homestead properties during the 2018 tax year. At no time is the district permitted to levy more than 18 mills on non-homestead properties.


Why is the district asking for a 4 year renewal?

Historically the value of non-homestead properties in Coloma has increased at a rate greater than inflation, which causes the millage to be Headlee reduced.  The non-homestead millage is an important portion of the states’ per-pupil foundation allowance and must be collected locally. The state calculates the amount the districts should receive based on the voters levying the full 18 mills.  If the millage has been Headlee reduced, the districts’ State Aid Foundation allowance is reduced based on not levying the full 18 mills, and during the 2017-2018 school year that reduction amount impacted the district budget by $36,499.  Keeping a shorter renewal cycle allows the district to seek community support for the restoration of the millage to the full 18 mills in a timely manner when the millage is Headlee reduced.


Paid for by Coloma Community Schools

302 W. St. Joseph St.

Coloma, MI 49038