County auditor tells Roaming Shores council state changes leave replacement revenue uncertain

Scott Yamamoto of the county auditors' association briefed the Roaming Shores council on recent state changes to school-tax calculations and an accompanying limited tax credit.

"We really don't have any information about how we're going to replace this," Yamamoto told council members, summarizing work by the auditors' association and a recent memo from the state Office of Budget Management. He said the association has hired a public-relations firm to coordinate messaging and that all 88 county auditors will present the same materials to townships, villages and cities.

Yamamoto explained the technical issue centers on the school portion of property taxes and a so-called "20 mil floor." As property values rise, tax rates compress so levies do not collect more or less revenue than voters originally approved; the state then adds millage on tax bills to address that compression. Under House Bill 186, he said, a one-time credit will appear on second-half tax bills for tax years 2023–24 and 2024–25 for that 20-mill component. He emphasized treasurers will apply credits on future bills rather than issuing refunds to taxpayers who already paid full-year amounts.

Yamamoto distributed a two-page Q&A and invited follow-up questions, offering his direct contact information. He said county auditors and school treasurers are still working through how schools will be funded if the existing property-tax structure changes, and he asked councils to expect an updated recalculation for second-half bills in the coming weeks.

Council members did not request immediate action; Yamamoto said auditors hope to complete recalculations within a few weeks so second-half bills reflect the new credit.

The council did not adopt any ordinance or motion tied to the briefing; Yamamoto encouraged officials and residents with questions to contact his office for the handout and further explanation.