Property Tax Overview Seminar

Property Tax Overview Seminar February 23, 2017 MELG Building, Lansing/Webinar 1 Technical Questions? Click on link to check your system http://support.blackboardcollaborate.com Contact Tech Support - 1.866.388.8674, option #2 No speakers? Use telephone for audio call 888.895.6448, passcode 4113293# 2 1

Overview of Blackboard Collaborate Top Toolbar Whiteboard Screens Participant Window Whiteboard Tools Chat Room Audio Controls (mic/speaker level) 3 Speakers Phil Boone Michigan Department of Education Bob Dwan Michigan School Business Officials Howard Heideman Michigan Department of Treasury Andrew Lockwood Michigan Department of Treasury Sharon Raschke Dexter Community Schools 4 2

Agenda 8:45 am Blackboard Collaborate Overview Debbie Kopkau, MSBO 8:50 School Property Taxes Overview Robert Dwan, MSBO 9:15 Terminology, Ad Valorem Property Tax Millage Levies, K12 and ISD Howard Heideman and Andrew Lockwood, Michigan Department of Treasury 10:15 Break 10:30 Millage Rates, Millage Reduction Fractions, and Tax Rate Requests Howard Heideman and Andrew Lockwood, Michigan Department of Treasury 11:15 L-4029 Sharon Raschke, Dexter Community Schools 12:00 pm Lunch 5 Agenda (Cont) 12:45 How Property Taxes Fit into State Aid Phil Boone, Michigan Department of Education 1:40 Personal Property Tax Reform, Specific Tax Programs, Renaissance Zones, Tax Increment Financing and Board of Review Howard Heideman and Andrew Lockwood, Michigan Department of Treasury 2:25 Break 2:40 County Settlement & Reconciliation of Property Tax Receivable Sharon Raschke, Dexter Community Schools 3:45 Current Topics, Michigan State Tax Commission, Other Issues, Wrap-Up Andrew Lockwood, Michigan Department of Treasury and Robert Dwan, MSBO 4:00 Adjourn 6 3

Property Tax Overview School Property Tax Overview Presenter: Robert Dwan, MSBO 7 Property Tax Process A S S E S S M E N T Township & City Assessors Taxable Value Information (DS-4410) County Equalization Director Tax Increment Financing Authorities Updated in May and at least annually thereafter 8 4

Property Tax Process A S S E S S M E N T County Equalization Director Taxable Value Information (DS-4410) School District Consolidates information for each school district Submitted online by County Treasurer to MDE 9 Property Tax Process T A X L E V Y School District Tax Levy (Form L-4029) Townships & Cities School District prepares L-4029 for each township/city Board approves after Truth In Taxation 10 5

Property Tax Flowchart T A X B I L L I N Townships / Cities Property Tax Bills Property Owners G 11 Property Tax Flowchart C O L L E C T I O N NO Settlement Process with the County Property Owners Pay Bill? (by Feb 28) YES Check Township / City Treasurer 12 6

Property Tax Flowchart C O L L E C T I O N Tax Breakdown Township / City Treasurer School District Check 13 Property Tax Flowchart C O L L E C T I O N Property Tax Receivables Worksheet School District Deposits Check in Bank 14 7

Property Tax Process S E T T L E M E N T Township & City Treasurer Settlement County Townships & Cities verify to the County parcel by parcel Tax collections Taxes receivable As of March 1 15 Property Tax Process D E L I N Q U E N T County Treasurer Tax Breakdown School District Check C O L L E C T I O N 16 8

Property Tax Flowchart County DELINQUENT PAYOFF Delinquent Personal Property Taxes Delinquent Real Property Taxes Check (Issues debt until collected) No Action School District Township/City collects delinquent personal property taxes County collects delinquent real property taxes (bills back if uncollectible) 17 Property Tax Process D E L I N Q U E N T School District Property Tax Receivables Worksheet Used to calculate taxes receivable Deposits Check in Bank P A Y O F F 18 9

School Aid Fund Funding 19 20 10

Glossary of Terms 21 Property Tax Overview Terminology Presenters: Howard Heideman & Andrew Lockwood Michigan Department of Treasury 22 11

Terminology: Real & Personal Property Real Property is land plus buildings and fixtures on the land. Personal Property is machinery, tools, computers, furniture or generally property not permanently affixed to a structure. Household personal property is not subject to the ad valorem property tax 23 Terminology: Principal Residence (Homestead) Property Principal residence property is property used as a property owner s principal residence or qualified agricultural property or qualified forest property. Principal residence property is not subject to the local school operating millage. See MCL 211.7dd 24 12

Terminology: Non-Principal Residence (Nonhomestead) Property Non-principal residence property is considered to be second homes, business property, and rental housing. Non-principal residence property is subject to the local school operating millage, except for industrial personal property that is exempt and except for commercial personal property that is exempt from the first 12 mills. 25 Terminology: Real Property Classifications Residential Agricultural Commercial Industrial Timber-Cutover Developmental See MCL 211.34c for in depth descriptions. 26 13

Terminology: Personal Property Classifications Commercial Industrial Utility See MCL 211.34c for in depth descriptions. 27 Terminology: State Equalized Valuation DETERMINATION OF STATE EQUALIZED VALUATION TRUE CASH VALUE = Market Value ASSESSED VALUE = 50% of True Cash Value SEV = ASSESSED VALUE times SEV FACTOR 28 14

Terminology: Capped Valuation DETERMINATION OF CAPPED VALUATION MCL 211.27a(2)(a) CAPPED = [(Prior Year Taxable Value minus VALUE LOSSES ) times the lesser of 5% or the Inflation Rate] plus ADDITIONS Inflation Rate for use in 2017 = 1.009 This rate is used for both capped value calculations and Headlee MRF s 29 Terminology: Taxable Value DETERMINATION OF TAXABLE VALUE MCL 211.27a(2) Sec 27a(2): for taxes levied in 1995 and for each year after, the taxable value of each parcel of property is the lesser of the following: a) The property s calculated capped value or b) The property s current state equalized valuation. 30 15

SEV and Taxable Value Gap $500 State Equalized Value $396.7 billions of dollars $400 $300 $200 Taxable Value $327.4 $100 1994 1997 2000 2003 2006 2009 2012 2015 Source: State Tax Commission. 31 2016 SEV and Taxable Value by Classification 2016 Classification 2016 SEV Taxable Value Agricultural Real $22,795,411,527 $10,479,877,007 Commercial Real $53,870,354,704 $46,766,419,902 Industrial Real $16,849,199,209 $15,362,578,335 Residential Real $274,930,187,551 $226,802,770,667 Timber Cutover Real $238,999,493 $114,315,228 Developmental Real $134,757,533 $71,775,693 Personal Property $27,898,913,829 $27,808,021,575 Total $396,717,823,846 $327,405,758,407 Source: State Tax Commission. 32 16

Property Tax Overview Ad Valorem Property Tax Millage Levies, K12 Presenters: Howard Heideman & Andrew Lockwood Michigan Department of Treasury 33 Ad Valorem Property Tax Millage Levies K-12 1. General Operating Levy 2. Hold Harmless Levy 3. Building & Site Sinking Fund Levy 4. Debt Levy 5. Recreational Levy 34 17

Ad Valorem Property Tax Millage Levies, K-12 Millage General Operating Taxable Value Base Non-Homestead & Non-Qualified Agricultural/Forest Property Headlee YES Truth in Tax YES General Operating Levy cannot exceed 18 mills or 1993 levy, whichever is less. 35 Ad Valorem Property Tax Millage Levies, K-12 Industrial Personal Property Beginning in 2008, industrial personal property is exempt from the State Education Tax and 18 mill local school operating tax. Prior to FY12, School Aid Fund revenues were reimbursed through the Michigan Business Tax. 36 18

Ad Valorem Property Tax Millage Levies, K-12 Commercial Personal Property Also beginning in 2008, commercial personal property is exempt from 12 mills of the local school operating tax. Prior to FY12, School Aid Fund revenues were reimbursed through the Michigan Business Tax. 37 Ad Valorem Property Tax Millage Levies, K-12 Millage Supplemental Hold Harmless Taxable Value Base PRE and Qual. Ag./Forest in the local school district Truth Headlee in Tax YES YES Lesser of Annual School Code Limit Millage and the 1994 Certified Millage, as permanently reduced, times the current year millage reduction fraction for all property. (Letter 3-29-99) 38 19

Exemption & Specific Taxation Programs Hold Harmless School Districts Because industrial and commercial personal property are treated like PRE and Ag property, hold harmless millage rates are levied on industrial and commercial personal property. Commercial personal property is only exempt from 12 school operating mills. It is only subjected to the first 12 hold harmless mills. 39 Hold-Harmless Mills Section 1211 of school code, MCL 380.1211 (3): Hold-Harmless Districts must reduce mills to limit increase in combined state and local revenue per pupil to lesser of: $ increase in foundation allowance % increase in general price level 40 20

Hold-Harmless Mills When foundation allowance increases by more than inflation, hold-harmless districts must reduce their millage rate to limit state/local increase to inflation. To allow hold-harmless districts to receive full dollar increase in foundation allowance, their foundation increases were limited to inflation. As of today, Sec.20j. payments are no longer being made. 41 Ad Valorem Property Tax Millage Levies, K-12 Millage Sinking Fund Taxable Value Base All properties within the local school district Headlee Yes Truth in Tax No See Attorney General Opinion 7131 42 21

Ad Valorem Property Tax Millage Levies, K-12 Millage Debt Taxable Value Base All properties within the local school district Headlee No Truth in Tax No 43 Ad Valorem Property Tax Millage Levies, K-12 Millage Recreational Taxable Value Base All properties within the local school district Headlee Yes Truth in Tax Yes 44 22

Property Tax Overview Ad Valorem Property Tax Millage Levies, ISD Presenters: Howard Heideman & Andrew Lockwood Michigan Department of Treasury 45 Ad Valorem Property Tax Millage Levies, ISD 1. Allocated Operating Levy 2. Special Education 3. Vocational Education 4. Enhancement 46 23

Ad Valorem Property Tax Millage Levies, ISD ISD Millage Allocated Operating Taxable Value Base All properties within the intermediate school district Truth Maximum Headlee in Tax 150% of what Yes Yes was authorized in 1993 Allocated through voter-approved fixed allocation or by county allocation board. 47 Ad Valorem Property Tax Millage Levies, ISD ISD Millage Special Education Taxable Value Base All properties within the intermediate school district Truth Maximum Headlee in Tax 175% of what Yes Yes was authorized in 1993 48 24

Ad Valorem Property Tax Millage Levies, ISD ISD Millage Vocational Education Taxable Value Base All properties within the intermediate school district Truth Maximum Headlee in Tax 150% of what was Yes Yes authorized in 1993. If not authorized, 1 mill is the limit 49 Ad Valorem Property Tax Millage Levies, ISD ISD Millage Enhancement Taxable Value Base All properties within the intermediate school district Truth Maximum Headlee in Tax Not to exceed Yes Yes 3 mills 50 25

Ad Valorem Property Tax Millage Levies NOT SUBJECT TO HEADLEE NOT SUBJECT TO TRUTH IN TAXATION STATE EDUCATION TAX NOT TO BE REPORTED BY THE LOCAL SCHOOL DISTRICT or ISD ON THE L-4029 - TAX RATE REQUEST 51 Break 52 26

Property Tax Overview Millage Rates/Millage Reduction Fractions Presenters: Howard Heideman & Andrew Lockwood Michigan Department of Treasury 53 Terminology: Millage Rate(s) BRIEFLY EXPLAIN THE DIFFERENCE BETWEEN A. AUTHORIZED OPERATING MILLAGE RATE B. PERMANENTLY REDUCED OPERATING MILLAGE RATE C. MAXIMUM ALLOWABLE OPERATING MILLAGE RATE 54 27

Terminology: Millage Rate(s) AUTHORIZED MILLAGE RATE: Millage rate or levy authorized by specific statute, charter or vote of the electorate. 55 Terminology: Millage Rate(s) PERMANENTLY REDUCED MILLAGE RATE: Beginning in 1994, if an authorized millage was subject to a Headlee rollback, the resulting reduced millage was carried forward to serve as the beginning levy for the following year s calculation. 56 28

Terminology: Millage Rate(s) MAXIMUM ALLOWABLE MILLAGE RATE: Prior year permanently reduced millage rate as factored by the applicable current year millage reduction fractions for Headlee limitation, Truth in Equalization* and/or Truth in Assessing*. *K-12 & ISD operating levies are not subject to Truth in Equalization or Truth in Assessing Rollbacks 57 Millage Reduction Fractions Headlee Millage Reduction Fraction MCL 211.34d Inflation MRF = (Prior Year Taxable Value - LOSSES ) X Rate (Current Year Taxable Value - ADDITIONS Inflation rate to be utilized for calculation of 2016 MRF is 0.3% (expressed as 1.003) 58 29

Millage Reduction Fractions Headlee Millage Reduction Fraction MCL 211.34d For K-12 General Operating, the Headlee MRF is calculated using 100% non-homestead & 100% nonqualified agricultural (Real & Utility Personal) properties located within the local school district only. Effective date set by local assessing officer. For: K-12 Hold Harmless, Sinking Fund, and Recreation; & ISD levies, the Headlee MRF is calculated using ALL properties (Real & Personal) located within the specific district. 59 Millage Reduction Fractions Base Tax Rate Fraction - Truth in Taxation MCL 211.24e BTRF = (Prior Year Taxable - LOSSES ) (Current Year Taxable - ADDITIONS ) 60 30

Millage Reduction Fractions CALCULATION OF BASE TAX RATE BTR = Prior Year Operating Levy times BTRF Note: A tax authority may forego the requirements of Truth in Taxation if it meets the optional requirements of Truth in Budgeting 61 Millage Reduction Fractions LOSSES MCL 211.34d(1)(h) Property Destroyed Property Removed Exempt Property Decrease in Occupancy Environmental Contamination LOSSES NOT: Platting, Splits, Combinations, Zoning Changes 62 31

Millage Reduction Fractions ADDITIONS MCL 211.34d(1)(b) Omitted Real Property Omitted Personal Property New Construction Previously Exempt Property Replacement Construction Remediation of Environmental Contamination Increase in Occupancy (Ruled unconstitutional, WpW) Public Services (Ruled unconstitutional, Toll Northville) 63 Millage Reduction Fractions ADDITIONS NOT: Platting, Splits, Combinations Zoning Changes Transfers of Ownership 64 32

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Property Tax L-4028 87 SCHOOL DISTRICTS Michigan Department of Treasury 612 (Rev. 3-16) (Page 2 OF 3) MUSKEGON COUNTY EQUALIZATION DEPARTMENT All Properties L-4028 IC 2016 Millage Reduction Fraction Computation (HEADLEE) (T in A) (T in T) Not On L-4029 L-4029 Column (6) L-4029 Column (8) 2015 Taxable 2016 Taxable Taxable Taxable Millage Truth in Base Tax Code Taxing Value Value Value of Value of Reduction Assess/Equal Rate Number Jurisdiction (1) As of 5/25/15 As of 5/23/16 Losses Additions Fraction (2) Fraction Fraction SCHOOL DISTRICTS 41-150 Kent City Public 33,613,963 33,547,480 648,345 381,400 IC NA IC 61-010 Muskegon Public 509,595,232 507,878,698 13,665,917 20,874,555 1.0000 NA 1.0183 Less Renaissance Zone (2,858,464) (2,219,936) (790,800) (170,500) Non Renaissance Zone 506,736,768 505,658,762 12,875,117 20,704,055 1.0000 NA 1.0184 61-020 Muskegon Heights Public 101,543,583 92,260,705 7,593,832 2,605,000 1.0000 NA 1.0479 Less Renaissance Zone (408,699) 0 0 409,175 Non Renaissance Zone 101,134,884 92,260,705 7,593,832 3,014,175 1.0000 NA 1.0481 61-060 Mona Shores Public 810,045,517 809,428,691 18,686,876 17,284,797 1.0000 NA 0.9990 Less Renaissance Zone (849,800) (746,277) (76,600) (300) Non Renaissance Zone 809,195,717 808,682,414 18,610,276 17,284,497 1.0000 NA 0.9990 61-065 Oakridge Public 173,123,703 167,199,998 10,537,769 4,334,382 1.0000 NA 0.9983 Less Renaissance Zone (243,200) (237,451) 0 0 Non Renaissance Zone 172,880,503 166,962,547 10,537,769 4,334,382 1.0000 NA 0.9982 61-080 Fruitport Public 566,237,444 579,033,043 4,785,188 14,767,007 0.9980 NA 0.9950 Less Renaissance Zone (280,400) (158,300) (118,300) 0 Non Renaissance Zone 565,957,044 578,874,743 4,666,888 14,767,007 0.9980 NA 0.9950 61-120 Holton Public 147,273,911 149,131,563 1,109,459 2,093,738 0.9970 NA 0.9941 61-180 Montague Public 345,703,837 333,481,672 18,269,524 5,795,782 1.0000 NA 0.9992 88 44

SCHOOL DISTRICTS Michigan Department of Treasury 612 (Rev. 3-16) (Page 2 OF 3) MUSKEGON COUNTY EQUALIZATION DEPARTMENT All Properties L-4028 IC 2016 Millage Reduction Fraction Computation (HEADLEE) (T in A) (T in T) Not On L-4029 L-4029 Column (6) L-4029 Column (8) 2015 Taxable 2016 Taxable Taxable Taxable Millage Truth in Base Tax Code Taxing Value Value Value of Value of Reduction Assess/Equal Rate Number Jurisdiction (1) As of 5/25/15 As of 5/23/16 Losses Additions Fraction (2) Fraction Fraction SCHOOL DISTRICTS 61-190 Orchard View Public 307,875,366 287,832,029 27,524,981 11,695,385 1.0000 NA 1.0153 Less Renaissance Zone (1,201,491) (842,894) (319,000) 0 Non Renaissance Zone 306,673,875 286,989,135 27,205,981 11,695,385 1.0000 NA 1.0152 61-210 Ravenna Public 171,568,788 170,536,491 5,797,059 3,951,872 0.9981 NA 0.9951 Less Renaissance Zone (860,106) (972,753) 0 (173,600) Non Renaissance Zone 170,708,682 169,563,738 5,797,059 3,778,272 0.9977 NA 0.9947 61-220 Reeths-Puffer Public 598,563,772 592,142,441 17,764,346 9,752,578 1.0000 NA 0.9973 Less Renaissance Zone (3,425,734) (1,809,980) (1,509,400) 0 Non Renaissance Zone 595,138,038 590,332,461 16,254,946 9,752,578 1.0000 NA 0.9971 61-230 North Muskegon Public 142,701,369 143,170,994 2,080,931 1,420,300 0.9950 NA 0.9920 61-240 Whitehall Public 474,734,788 449,084,285 33,070,524 10,493,958 1.0000 NA 1.0070 Less Renaissance Zone (3,037,400) (1,512,886) (1,557,200) (119,800) Non Renaissance Zone 471,697,388 447,571,399 31,513,324 10,374,158 1.0000 NA 1.0068 62-040 Fremont Public 6,471,395 6,591,239 38,923 197,644 IC NA IC 62-050 Grant Public 35,646,817 35,982,188 105,384 225,900 IC NA IC 70-010 Grand Haven Public 131,896,983 130,177,977 6,778,346 5,696,500 IC NA IC Less Renaissance Zone (1,407,100) (1,423,400) (1,700) (62,200) Non Renaissance Zone 130,489,883 128,754,577 6,776,646 5,634,300 IC NA IC 70-120 Coopersville Public 13,532,334 14,237,653 151,305 387,300 IC NA IC 89 Michigan Department of Treasury 612 (Rev. 3-16) (Page 2 OF 3) MUSKEGON COUNTY EQUALIZATION DEPARTMENT All Properties L-4028 IC 2016 Millage Reduction Fraction Computation (HEADLEE) (T in A) (T in T) Not On L-4029 L-4029 Column (6) L-4029 Column (8) 2015 Taxable 2016 Taxable Taxable Taxable Millage Truth in Base Tax Code Taxing Value Value Value of Value of Reduction Assess/Equal Rate Number Jurisdiction (1) As of 5/25/15 As of 5/23/16 Losses Additions Fraction (2) Fraction Fraction INTERMEDIIATE SCHOOLS 41-000 Kent County 33,613,963 33,547,480 648,345 381,400 IC NA IC 61-000 Muskegon County 4,348,967,310 4,281,180,610 160,886,406 105,069,354 1.0000 NA 1.0029 Less Renaissance Zone (13,165,294) (8,500,477) (4,371,300) (55,025) Non Renaissance Zone 4,335,802,016 4,272,680,133 156,515,106 105,014,329 1.0000 NA 1.0028 62-000 Newaygo County 42,118,212 42,573,427 144,307 423,544 IC NA IC 70-000 Ottawa County 145,429,317 144,415,630 6,929,651 6,083,800 IC NA IC Less Renaissance Zone (1,407,100) (1,423,400) (1,700) (62,200) Non Renaissance Zone 144,022,217 142,992,230 6,927,951 6,021,600 IC NA IC COMMUNITY COLLEGE Muskegon Community 4,344,410,177 4,273,173,736 166,021,498 106,613,650 1.0000 NA 1.0028 Less Renaissance Zone (14,572,394) (9,923,877) (4,373,000) (117,225) Non Renaissance Zone 4,329,837,783 4,263,249,859 161,648,498 106,496,425 1.0000 NA 1.0028 LIBRARIES Hackley Public Library 604,479,091 580,808,361 38,017,804 26,180,655 1.0000 NA 1.0213 Less Renaissance Zone (3,830,555) (2,844,230) (1,106,000) (170,500) Non Renaissance Zone 600,648,536 577,964,131 36,911,804 26,010,155 1.0000 NA 1.0213 Muskegon Area District 3,264,049,126 2,769,629,673 554,490,788 58,523,423 1.0000 NA 0.9994 Less Renaissance Zone (7,704,439) (5,408,461) (1,871,900) 173,075 Non Renaissance Zone 3,256,344,687 2,764,221,212 552,618,888 58,696,498 1.0000 NA 0.9993 White Lake Community 474,734,788 449,084,285 33,070,524 10,493,958 1.0000 NA 1.0070 Less Renaissance Zone (3,037,400) (1,512,886) (1,557,200) (119,800) Non Renaissance Zone 471,697,388 447,571,399 31,513,324 10,374,158 1.0000 NA 1.0068 90 45

Michigan Department of Treasury 612 (Rev. 3-16) (Page 3 OF 3) MUSKEGON COUNTY EQUALIZATION DEPARTMENT Non-P.R.E. and Non-Qualified Agricultural Properties L-4028 IC 2016 Millage Reduction Fraction Computation (HEADLEE) (T in A) (T in T) Not On L-4029 L-4029 Column (6) L-4029 Column (8) 2015 Taxable 2016 Taxable Taxable Taxable Millage Truth in Base Tax Code Taxing Value Value Value of Value of Reduction Assess/Equal Rate Number Jurisdiction (1) As of 5/25/15 As of 5/23/16 Losses Additions Fraction (2) Fraction Fraction SCHOOL DISTRICTS 41-150 Kent City Public 4,243,655 4,483,327 36,655 256,600 IC NA IC 61-010 Muskegon Public 266,354,707 271,033,211 1,862,249 13,631,858 1.0000 NA 1.0275 Less Renaissance Zone (1,205,599) (1,330,957) 0 (98,900) NA Non Renaissance Zone 265,149,108 269,702,254 1,862,249 13,532,958 1.0000 NA 1.0278 61-020 Muskegon Heights Public 59,937,271 58,007,321 234,400 1,347,500 1.0000 NA 1.0537 Less Renaissance Zone (158,699) 0 0 159,175 NA Non Renaissance Zone 59,778,572 58,007,321 234,400 1,506,675 1.0000 NA 1.0539 61-060 Mona Shores Public 243,745,312 247,446,555 1,030,562 6,252,700 1.0000 NA 1.0063 Less Renaissance Zone (535,200) (527,277) 0 0 NA Non Renaissance Zone 243,210,112 246,919,278 1,030,562 6,252,700 1.0000 NA 1.0063 61-065 Oakridge Public 51,508,682 51,368,812 2,161,598 1,497,152 0.9924 NA 0.9895 Less Renaissance Zone (183,800) (184,351) 0 0 NA Non Renaissance Zone 51,324,882 51,184,461 2,161,598 1,497,152 0.9924 NA 0.9895 61-080 Fruitport Public 165,172,875 171,297,345 663,656 5,107,400 0.9929 NA 0.9899 Less Renaissance Zone (116,400) (116,300) 0 0 NA Non Renaissance Zone 165,056,475 171,181,045 663,656 5,107,400 0.9928 NA 0.9899 61-120 Holton Public 40,572,307 41,617,539 263,130 1,067,503 0.9970 NA 0.9941 61-180 Montague Public 132,139,770 136,015,890 449,357 2,512,679 0.9894 NA 0.9864 61-190 Orchard View Public 123,557,919 125,380,381 1,914,419 5,417,589 1.0000 NA 1.0140 Less Renaissance Zone (399,891) (393,694) 0 0 NA Non Renaissance Zone 123,158,028 124,986,687 1,914,419 5,417,589 1.0000 NA 1.0140 91 Michigan Department of Treasury 612 (Rev. 3-16) (Page 3 OF 3) MUSKEGON COUNTY EQUALIZATION DEPARTMENT Non-P.R.E. and Non-Qualified Agricultural Properties L-4028 IC 2016 Millage Reduction Fraction Computation (HEADLEE) (T in A) (T in T) Not On L-4029 L-4029 Column (6) L-4029 Column (8) 2015 Taxable 2016 Taxable Taxable Taxable Millage Truth in Base Tax Code Taxing Value Value Value of Value of Reduction Assess/Equal Rate Number Jurisdiction (1) As of 5/25/15 As of 5/23/16 Losses Additions Fraction (2) Fraction Fraction SCHOOL DISTRICTS 61-210 Ravenna Public 29,772,953 31,289,211 194,053 1,433,539 0.9934 NA 0.9905 Less Renaissance Zone (317,706) (312,753) 0 0 NA Non Renaissance Zone 29,455,247 30,976,458 194,053 1,433,539 0.9934 NA 0.9905 61-220 Reeths-Puffer Public 149,640,612 150,672,554 5,328,975 6,092,100 1.0000 NA 0.9981 Less Renaissance Zone (740,834) (746,980) 0 0 NA Non Renaissance Zone 148,899,778 149,925,574 5,328,975 6,092,100 1.0000 NA 0.9982 61-230 North Muskegon Public 33,687,652 34,214,142 133,137 657,100 1.0000 NA 0.9999 61-240 Whitehall Public 157,139,151 161,156,017 792,084 3,497,800 0.9947 NA 0.9917 Less Renaissance Zone (495,900) (617,186) 0 (119,800) NA Non Renaissance Zone 156,643,251 160,538,831 792,084 3,378,000 0.9946 NA 0.9917 62-040 Fremont Public 1,852,946 1,886,667 27,700 98,900 IC NA IC 62-050 Grant Public 6,353,379 6,416,613 32,000 142,700 IC NA IC 70-010 Grand Haven Public 70,223,015 70,828,375 415,900 1,449,900 IC NA IC Less Renaissance Zone (864,600) (843,300) 0 0 NA Non Renaissance Zone 69,358,415 69,985,075 415,900 1,449,900 IC NA IC 70-120 Coopersville Public 1,590,517 1,758,213 4,300 132,200 IC NA IC 92 46

Property Tax Preparation of L-4029 93 Obtain the L- 4028 from County Equalization If you are in more than one county, you will need the L-4028 IC. Taxable Values 94 47

Taxable Values by Municipality 95 Taxable Values Total taxable values used for Debt, Sinking, and Special Ed Non-PRE/MBT (non-homestead) used for Operating (General Fund) Use to budget by municipality GF operating tax revenue (11-0111-xxxx) Debt tax revenue (30-011-xxxx) Common debt fund makes splitting debt levy not necessary 96 48

L-4029 Tax Rate Request Use an excel version of the L-4029 Just update from year to year Calculated cells Reduce inadvertent errors 97 L-4029 Tax Rate Request Have last year s L-4029 available for reference 98 49

L-4029 Tax Rate Request 99 L-4029 Tax Rate Request Enter the source for each millage. This may include charter, extra-voted, debt 100 50

L-4029 Tax Rate Request Enter the purpose of the millage and on what properties it applies. Examples are operating-non PRE, debt-all properties, sinking-all properties, special edall properties. 101 L-4029 Tax Rate Request Record the election date and year for each millage authorized by district voter approval. 102 51

L-4029 Tax Rate Request List the millage rate for each rate authorized by voters, charter, or debt service. This is the originally authorized rate before any millage reductions. 103 L-4029 Tax Rate Request List the millage rate for each rate authorized by voters, charter, or debt service. This is the originally authorized rate before any millage reductions. Always use four (4) decimals. 104 52

L-4029 Tax Rate Request Look at last year s Column 7 This is the permanently reduced rate recorded in column 7 of last year s L- 4029. Enter the full millage rate approved by voters if it was approved after April 30 of this year. Current year approvals are NOT subject to reduction this year. 105 L-4029 Tax Rate Request Column 6 does not exceed 1.0000. This prevents roll up of millage rates. Enter 1.0000 for any current year approved millage (after April 30). Enter 1.0000 for debt, as debt millage is not subject to roll back. List Millage Reduction Fraction reported by county equalization on form L-4028 (IC) for the current year Use four decimal places Operating, sinking, and special ed levies may roll back 106 53

L-4029 Tax Rate Request 18.0000 x 0.9969 = 17.9442 3.0000 x 0.9969 = 2.9907 Calculation Column Multiply rate in Column 5 by the Millage Reduction Fraction in Column 6 Round DOWN to fourth decimal place because you may not levy MORE than and if it rounds up, it would be MORE than 107 L-4029 Tax Rate Request This column is always 1.0000 for school districts, since schools are not subject to Truth in Assessing or Equalization millage rollback fractions 108 54

L-4029 Tax Rate Request Calculation Column Multiply rate in Column 7 by the rollback fraction in Column 8 Since Column 8 is always 1.0000 for schools, Column 9 is always Column 7 for schools 109 L-4029 Tax Rate Request Calculation Column Indicate your summer requested levy in column 10 Indicate your winter requested levy in column 11 This district only levies winter taxes Operating non-pre may not exceed 18.0000 List debt splits if you account for debt issuance separately 110 55

L-4029 Tax Rate Request Record the millage expiration date This is always a 12/31 date with the year of millage expiration. 111 L-4029 Tax Rate Request Report millage levy for: Principal Residence, Qualified Ag, Qualified Forest and Industrial Personal (normally 0.0000) Commercial Personal (normally 6.0000) All Other (normally 18.0000 unless you have a roll back) 112 56

L-4029 Tax Rate Request Complete the certification section Complete the prepared by section, so county officials know who to contact with any questions. Board secretary and Board president must sign the L-4029 AFTER the levy is approved by the Board. 113 L-4029 Tax Rate Request Use an excel version of this form or a fillable PDF can be obtained from Michigan Treasury s website at www.michigan.gov/treasury Form must be completed and submitted to county equalization, county treasurers, and local municipalities on or before September 30 of each year. If you do a summer levy, the form must be submitted earlier because tax forms are generated and sent June 30. Tax Rate Requests must be approved in accordance with Truth in Taxation Hearing requirements. 114 57

Truth in Taxation Hearing Publish notice in your publication of record ON THE ADOPTION OF THE BUDGET FOR THE FISCAL YEAR 2016-17 AND THE 2016 TAX RATE ON NON-HOMESTEAD PROPERTIES THAT WILL BE AT 18 MILLS AND THE 2016 DEBT LEVY ON ALL PROPERTIES THAT WILL BE AT 8.5 MILLS. THE PROPERTY TAX MILLAGE RATE PROPOSED TO BE LEVIED TO SUPPORT THE PROPOSED BUDGET WILL BE A SUBJECT OF THIS HEARING. 115 Truth in Taxation Hearing Conduct hearing at Board Meeting before the budget is adopted 116 58

Resolution for Tax Millage Rate Board authorizes tax levies 117 Usage of Extra non-pre 118 59

Property Tax Allocation Begin your new year Current Property Tax Allocation Tax Collection spreadsheet 2015 Tax Year = 2015-16 Fiscal Year 2016 Tax Year = 2016-17 Fiscal Year 119 Budget for Property Taxes From the taxable values, calculate the taxes you will collect for General Fund (non-pre), Debt Fund (all properties), Sinking Fund (all properties) ISD will have Special Ed (all properties) 120 60

Property Tax Hands-on Workshop Settlement Reconciliation 121 Property Taxes Collected Finalize Excel file details Each property tax receipt by municipality (i.e. township, city) County settlement collections Delinquent personal property tax from municipality 122 61

Taxable Values Print and Download (Excel) - Taxable Value (4410) from https://mdoe.state.mi.us/taxablevalue/logi n.aspx (public access) 123 Taxable Values Copy and paste values into Property Tax Reconciliation Worksheet 124 62

Reconciliation Worksheet Modify content and formulas as needed for your particular situation and particular year (i.e. levy, sinking fund, tax captures like DDA, annexed parcels). Used to calculate expected tax collection of operating, debt, sinking fund, etc. Enter collected taxes, receivables, adjustments to 4410 needed. Tie to county settlements, L-4029, GL 125 County Settlements Tie to county settlements, L-4029, GL 126 63

Taxable Values Tie to General Fund GL and Debt Fund GL 127 Reconciliation Tie to State Aid Status Report for operating revenues expected If they do not match either the 4410 is not updated or the update to the 4410 has not been picked up by the State. Verify and note adjustment. 128 64

Reconciliation Compare the L-4029 to get a sense of your expected taxable values versus final taxable values 129 County Settlements Most municipalities settle with the county by mid-may. Settlements are basis for revised DS4410 report. School district pays county for surety bonds issued for DTRF. Delinquent taxes on personal property collected by local treasurers, unless county treasurer agrees to collect. 130 65

Calculate Your Foundation Foundation per pupil $7,693 x Number of students 3,550.05 = Foundation Total _27,310,534.65 131 State Source Expected Gross Foundation_ 27,310,534.65 Less Local Property Tax Revenue 4,332,490.00 Total Expected State Aid _22,978,044.65_ 132 66

State Source Difference should be minor 133 Property Tax Hands-on Workshop Personal Property Exemption Loss 134 67

Personal Property Exemption The exemption of personal property was a loss for schools debt millage collection. Treasury will reimburse the loss under PA 86 of 2014. Must complete Form 5451 and submit to TreasORTAPPT@Michigan.gov due August 15, 2016. 135 Personal Property Exemption Need REVISED L-4050 from County Equalization. 136 68

Personal Property Exemption If you are in more than one county, make sure you have the IC version of the REVISED L-4050 from County Equalization. 137 Personal Property Exemption Complete form 5451 Personal Property Exemption Loss 2016 Debt Millgage Reimbursement Claim for School Districts & Intermediate School Districts. 138 69

Personal Property Exemption Use Personal Property Exemption Loss 2013 TV-2016 TV Enter your debt millage levied based on year of obligation 139 Personal Property Exemption Reimbursement = 19,340,444 * 8.5000 mills = $164,394 Submit claim Form 5451 to TreasORTAPPT@Michigan.gov due August 15, 2016 140 70

Lunch 12:00 12:45 pm 141 71