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House of Representatives
Session of 2021 - 2022 Regular Session


Posted: December 2, 2020 09:36 AM
From: Representative Seth M. Grove
To: All House members
Subject: Requiring School Districts to Reduce their Millage Rates as They Retire Debt
Under the Property Tax Relief Act (Act 1) school districts can raise property taxes by the rate of inflation. However, the law allows for districts to raise taxes above inflation if the increase is meant to pay for several reasons. One of the most common reasons is for debt payments associated with school construction and building costs.

In an effort to improve school funding and reduce property taxes increases on residents, the state in 2016 provided $2.5 billion to reimburse school districts and help reduce their debt. While the state sent significant funds to reduce school debt and allows for school districts to raise taxes to cover debt payments, they rarely reduce taxes on residents once the debit is retired.

In order to provide property owners with needed tax relief, I plan to introduce legislation which requires school districts to reduce their millage rates as they pay down their debt. As the taxes were associated with the debt and the state continues to provide funding increases there is no reason for districts to not reduce property taxes as the debt is retired.

Please join me and co-sponsor this legislation to provide property owners with tax relief.

Introduced as HB258