Traverse City Record-Eagle

Archive: Tuesday

April 23, 2013

College approves millage request

The Northwestern Michigan College board approved a millage request that will ask voters to raise their property tax rate by .4 mills for 15 years.

The millage vote to support college operations will most likely come in August. The timing didn’t sit well with trustee Cheryl Gore Follette, who cast the single dissenting vote in the 5-1 decision Monday night. She preferred a November election, saying that a special election would cost $80,000.

“My only hesitation is the timing,” said Follette, adding that she strongly supported the request. “I’m extremely concerned about the timing.”

The board could decide to hold the election in November if it determines that it could still levy the new tax in 2013. If approved, the increase would be certified 45 days after the election, but tax bills go out on December 1.

A “yes” vote would mean a $1.7 million annual boost in college coffers for the first first year.

The ballot will explain that the Headlee amendment reduced NMC’s tax levy from 2.5742 to 2.1700 mills. A “yes” vote will increase the tax rate by .4042 mills. That means the owner of a home with a taxable value of $200,000 would pay an additional $80 in annual property taxes.

The 15-year limit for the new rate was proposed by trustee Ross Childs. Bill Myers, who was sitting in as board chair, pointed out that the current tax levy for operations is perpetual.

“But I don’t expect to be here,” said Childs, laughing along with other board members.

After the meeting, he explained that he wanted to put a time limit on the millage.

“Who knows if the Headlee amendment will be around in 15 years,” he said.

The Headlee amendment limits property tax revenue increases to the rate of inflation and rolls back the millage rate to adjust dollars.

Trustee Kennard Weaver said the amendment has not allowed property tax revenues to keep pace with inflation. Declining property values have meant a drop in revenues from $9.3 million in fiscal year 2011 to $9.1 million last year. It’s expected to stay at that level until fiscal year 2017, when it’s projected to increase to $9.2 million.

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