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House Bill 186 changes could reduce inside millage growth for district, presenter says
Summary
The presenter explained how House Bill 186's GDP-deflator cap and 20‑mill flow changes affect inside millage and tax revenue, and warned that emergency levies are now treated differently in the rollback calculation.
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During the forecast presentation the presenter walked the board through how recent property‑tax reform alters millage calculations and effective rates. The presenter noted the GDP‑deflator cap in House Bill 186 of "9.15" and explained that under those rules other districts' property taxes may only grow by that cap; for the district the effect shows inside millage declining from about 4.5 mills to 4.11 mills next year under the current assumptions.
The presenter also explained that, for the first time, emergency levies are included in the 20‑mill flow calculation, which changes whether a district is considered to be at or above the 20‑mill threshold. "It's for the first time in history that inside millillage will actually start going down as the property values go up," the presenter said, adding that inclusion of emergency levies in the flow alters the effective millage comparisons. Board members were urged to account for these tax‑law effects when planning levy renewals and outreach.
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