6/10/1974 - Laserfiche WebLink

Home Browse Search

z MEMO Be: Explanation of Local Millage roll Back Law Date: June 7, 1974 The purpose of this local Bill is to put a limit on the amount of taxes that local taxing bodies (schools, counties, cities, taxing districts, and so forth) can raise local property taxes in any given year. The idea behind the Bill is that we are trying to dlscourage an increase in taxes, and put an outside limit on the amount local taxis; bodies can increase taxes. The important aspects of the Bill are as follows: 1. The millage of each taxing body is determtned to be the amount of millage that would raise the same dollar amount on the current assess - mens roll as was raised in ad valorem taxes on the preceding year's roll, excluding new construction. Example: 1973 tax roll $300 million. 1974 tax roll X640 million, of which $40 million is new construction. Assuming a millage of 8.3 mills for 1973, the way to determine the millage for 1974 would be as follows: $300 million/$600 million (..5640 million, $40 million was new con- struction) X 8.3 mills (1973 millage) = 4.15 mills for the current year to raise the same amount as the preceding year (excluding new construction). Thus, a local taxing body could levy 4.15 mills, plus 107 of 4.15 mills or. 415, for a total of 4.565 X dhe total assessed value of $640 million, which would be $2.92 million that the taxing body could raise in 1974, as compared with the 8.3 mills X $300 million or $2.49 million for 1973. This is actually greater than a 1070 increase, and it would amount to $430, 000 over die preceding year. The other aspects of the Bill are that there is JUN 10 1974 eoo� 20— PAcE182 y