Gov't

School Property Tax Millages Decrease Over Time

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Propositions two and three on the May 2nd school tax vote are funded by property taxes.  The propositions each translate into a “millage”, which is the approximate rate that property will be taxed each year to pay off the school improvements and new Elementary School.  These millage rates will begin at approximately 9 mills and 14 mills.

 

However, as new homes are built and property values increase, the tax base would increase, which would result in lower property tax millages.  A 5% growth rate, which is estimated to be conservative for Central, would result in each of these taxes declining to less than 5 mills by the end of the 20 year debt retirement.

 

Two graphs which visually present this concept can be seen at this link:  Millage Decreases.