Grand Rapids Public Schools issued the following announcement on July 28.
Non-Homestead Millage Proposal to Address Headlee Rollback is Not a New Tax and Not a Tax Increase
On Tuesday, August 3, 2021, the Grand Rapids Board of Education is asking the voters in the City of Grand Rapids to consider a non-homestead millage proposal of up to 23 mills for a period of seven years to protect against a likely Headlee rollback. State law specifically limits the maximum levy to no more than 18 mills.
In the event of a Headlee rollback, all or a portion of the additional 5 mills would only then be used to maintain the levy at the capped 18 mill rate.
Over the past few years, taxable values in the City of Grand Rapids have increased 4.5% to 6% annually and, coupled with historically low inflation rates, resulting in annual Headlee rollbacks between 0.20 and 0.25 mills. In November 2017, Grand Rapids voters approved a 19 mill non-homestead millage to address the same Headlee rollback issue. It passed by 71.29%.
Although 2021 assessment information is not yet complete for all of Kent County, the district will likely experience a rollback this year that would bring the authorized millage rate below the 18 mill cap and thereby result in lost state aid revenue as much as $250,000 or more.
The following is a primer on the proposed GRPS non-homestead millage proposal that will be on the August 3 ballot in Grand Rapids:
- It costs homeowners $0.
This is a property tax assessed on commercial, industrial, and other “non-homestead” property only.
- It is not a new tax.
The 18 mill non-homestead property tax has been repeatedly passed by voters and is already being levied. Voters in Grand Rapids passed the last non-homestead millage proposal in November 2017 by 71.29%.
- It is not a tax increase.
State law specifically limits the maximum levy to no more than 18 mills. All or a portion of the additional 5 mills would only be used to maintain the current 18 mill levy in the event of a Headlee rollback.
- It generates $30 million.
15% of our total operating budget – for teaching textbooks, technology, classrooms, and schools.
Original source can be found here.
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