Royal Oak School District Seeks Authorization to Maintain Tax Rate

ROYAL OAK, MI — Royal Oak Schools district is vying for a 0.8-mill increase on the millage — which is a tax on businesses and houses that aren't the owner's primary residence. Voters in the district will decide whether or not to approve the small increase on Nov. 8, Daily Tribune reports.

In order for the school district to receive their complete funding from the state, the millage must be passed. This is under state Proposal A, which goes back to 1994.

If the millage is brought up, the district could keep the non-homestead tax rate at a steady 18 mills. If it's not approved, district officials said Royal Oak Schools will presumably lose more than $132,000 in funding for the 2016-17 school year.

The proposed increase would up the tax rate by 80 cents for each $1,000 of taxable value on second homes or properties impacted by the millage.

The Nov. 8 ballot proposal “provides a mechanism so we can keep the millage at 18 mills,” said Superintendent Shawn Lewis-Lakin, according to Daily Tribune. “It provides a buffer to protect us against future rollbacks”

Officials are pushing for the approval of the millage since it wouldn't have any affect on the property tax rates of someone's primary residence, where they live all or most of the year. However, proper funding for schools will influence home values.

“The quality of the schools is directly tied to the value of your home,” said Lewis-Lakin.

To read more on this vote, check out the Daily Tribune article.

Photo courtesy of Shutterstock