I was asked an important question about the 2022 Zero-Tax-Increase School Bond Proposal recently: What will happen to the millage rate if the bond fails? This is a great question and, fortunately, it’s a simple answer: For taxpayers within the boundaries of Lapeer Community Schools, taxes will go down regardless of the outcome of the vote on November 8.
- If the “Nuts and Bolts” School Improvement Bond Proposal passes, taxes will slightly decrease (from 2.75 mills to 2.65 mills).
- If the proposal fails, the decrease would be more significant (from 2.75 mills to an estimated 2.25 mills).
In either case, Lapeer Community Schools would continue to levy the lowest millage rate in Lapeer County.
So how much would you save? Probably not as much as you think.
Property taxes in Michigan are calculated by multiplying the taxable value of your property by the number of mills levied. So, in this case, failure to pass the bond would save taxpayers approximately .40 mills. In plain English, that’s 40 cents for every $1,000 of your home’s taxable value.
So, for instance, school millage taxes on a home with a taxable value of $61,000 (the state average in 2020) would decrease by $2 per month. Were the bond to pass, the decrease would be 50 cents per month.
Editor’s note: Taxable value is never more than the assessed value of your home (which is determined to be 50% of market value, though many homes are worth much more than double their assessed value in today’s market).
For a local example of a no-tax-increase bond proposal, we can look to our neighbors to the east: Imlay City Schools. Back in 2019, voters in Imlay City passed a school bond very similar to the one proposed here.
Their rate stayed the same at 6.50 mills, more than double the rate of taxation in our school district. Without raising taxes, they were able to raise more than $36 million to make significant improvements to their facilities, including roofs, HVAC, safety and security upgrades and the construction of a new performing arts center.
So, long story short: Taxes will go down either way. If the bond passes, they go down a little less but offer significant funds to improve the overall condition of our schools.
For more information on the 2022 School Improvement Bond, contact Jared Field at Jared. Field@LapeerSchools.org.