The Millage Levy Resolution approved by the Board of Trustees on Monday authorizes the College to collect (levy) property taxes from our district. GRCC’s district covers the same property as the Kent Intermediate School District.
For 2017, the college will be levying 1.7788 mills. A “mill” is equal to $1 in property taxes per $1,000 of taxable value. For a property with a taxable value of $100,000, the college would collect $177.88. Depending on how long a property has had the same ownership, taxable value will generally approximate one-half or less of its estimated market value.
For 2017, the maximum millage rate that we can levy is 1.7788 mills, which is a reduction from the previous year’s rate of 1.7865. This reduction is due to the “Headlee” calculation, passed in the mid 1990s as part of Proposal A.
The Headlee calculation says that when the taxable value of a district, in total, increases by more that the average change in the Consumer Price Index (CPI) over the past 12 months, a taxing unit (such as the college, K-12 districts, cities, townships, etc.) must reduce its millage rate so that their increase in property tax revenue does not exceed the CPI. Additions to the tax rolls, such as newly constructed properties, are excluded from the Headlee calculation and thus will generate additional property tax revenue.
The reduction in the college’s millage rate due to the Headlee calculation is permanent. Thus, it will never increase even in years when the taxable value changes less than the CPI, or even decreases. In fact, since 1995, the Headlee calculation has permanently reduced GRCC’s millage rate from 1.9000 mills to 1.7788 mills. Based on the 2017 taxable value, this will result in a revenue loss to the college of approximately $2.7 million.