On Tuesday, May 3, 2022, voters in the Kingsley Area School District will be asked to vote to renew the 18 mill operating tax levy.
This levy applies to only to industrial, commercial, business, rental, and second homes and does not affect the millage rate on owner-occupied primary residences.
Voters approved a four-year non-homestead operating tax levies in 2014 and 2018. The millage will be expiring at the end of this school year and requires reauthorization.
The proposal will ask voters to again renew the 18.0 mill operating levy to fully fund Kingsley Area Schools, as prescribed by state law. The non-homestead operating tax levy raises approximately $1.2 million each year and represents about 7% if the district’s General Fund budget.
Please read answers to the frequently asked questions below.
What is an “operating millage?”
It is NOT a tax on homeowners. It is known as a “non-homestead- operating tax” since primary residences are exempt from the tax. School districts must levy a local property tax of 18-mills on non-homestead property - industrial, commercial, business, rental, and second homes – in order for the district to receive its full per-pupil funding from the State of Michigan. This operating millage helps fund the day-to-day- functions of the school district.
Is this a new Tax?
No. This proposal is a renewal of the non-homestead property tax last approved by the voters in 2018. The term requested with the renewal is four (4) years, which is the same time period as the expiring 18-mill operating tax levy.
Will my home property taxes go up if this passes?
No. Your home property tax rate will remain the same. For homeowners and businesses alike, nothing will change: home owners don’t pay this tax anyway and businesses will simply continue to pay a tax they’ve been paying all along.
Will my home property taxes go down if this is defeated?
No. Your home property tax rate will remain the same; the rate will drop only for commercial, industrial, and rental businesses. However, if the proposal is defeated by voters it would result in a loss of $1.2 million in operating revenue and a potential reduction of educational programs offered by the school district.
Do businesses and commercial entities pay this operating tax in other school districts?
Yes. Regardless of which school district a business may be located within Michigan, in order for a school district to receive its full funding from the State of Michigan it must levy the 18-mill operating tax.