2024 Non-Homestead Operating Millage Renewal

Dear Holton Community:

In the early 1990’s, voters in the State of Michigan approved Proposal A, which dramatically changed the way in which schools are funded. The intent of Proposal A was to accomplish two major goals. The first of those goals was to lower the property tax burden on local homeowners. The second was to stabilize the funding of local schools by closing the gap between the lowest funded school districts and the highest funded school districts in the state. While there is debate, and certainly no consensus on whether or not Proposal A was successful, it is clear that Proposal A did reduce the frequency of millage campaigns in local communities. The Holton Public Schools’ operating millage expires with the 2024 tax levy. The school district is seeking voter consideration of an operating millage renewal on the May 7 election ballot.

As a result of the passage of Proposal A, it is an expectation of the State of Michigan for school districts to levy 18 mills on non-homestead property as a component of the funding that schools receive in per pupil funding sources. To do that, Holton Public Schools is required to periodically ask its voters to consider the renewal of the non-homestead portion of the millage that the district levies. That non-homestead millage is paid by owners of commercial and industrial property and those who own second homes. Non-homestead property taxes are not levied upon a homeowner's primary residence, which means that the residents of Holton Public Schools, who own one home in the district, will not pay this tax on that home. 

The non-homestead property taxes represent approximately $944,000, or nearly 10% of the district’s annual operating budget. If the renewal is not passed, Holton Public Schools will lose this revenue from its 2024-2025 annual operating budget, as the state will not replace this funding through the per pupil foundation allowance that the district currently receives.

This goes without saying that May 7th is an important day for Holton Public Schools. Please consider the following points of emphasis as you make your decision regarding this matter: (1) This would be simply a renewal of the operating millage that has previously been levied on commercial property, industrial property, and second homes; (2) Homeowners would not be subject to this tax on their primary residence; (3) The revenue generated from non-homestead property taxes equals approximately 10 percent of the school district's annual operating budget; and (4) If the renewal proposal fails, homeowners will not see a decrease in their property taxes that they pay on their primary residence.

Please be sure to visit our website at: http://www.holtonschools.com for more information. Also, please feel free to contact me at: (231) 821-1700 or abayne@holton.k12.mi.us. Thank you for your time and consideration!


In Holton Pride,

Dr. Adam Bayne


Information to the community regarding the district’s non-homestead millage proposal

On Tuesday, May 7th, 2024 Holton Public Schools will ask district residents to approve the renewal of its non-homestead millage proposal. It is important to understand the 18 mill non-homestead millage renewal that the district is proposing to the community. The following bullet points and letter to the community will outline the district’s request.

What is the 18 mill non-homestead millage?

In the 1990’s, Proposal A changed school funding and redefined how property taxes are assessed.

Schools must levy 18 mills on non-homestead properties to receive full state funding (non-homestead properties are those in which a homestead exemption cannot be obtained such as commercial property, industrial property, and second homes).

The millage is collected by the municipalities within Holton Public Schools, and then forwarded to the school district.

Tax revenues from this millage are used for the school district’s general operation.

This is NOT a tax on homestead properties. It is a proposal to continue the existing 18 mill assessment on non-homestead properties only.

Why does the school district need to renew it?

The current millage expires with the 2024 tax levy.

To avoid getting lost on the ballot, making this request on a May ballot will allow voters to focus on this proposal.

District voters approved the last non homestead request in 2018 

What is the financial impact of the renewal?

The state pays the school district the foundation allowance, less the 18 mill levy on non-homestead property. If not renewed, the school district will lose just over $944,000 for the 2024-2025 fiscal year.

Any amount levied less than the 18 mills is not reimbursed by the State.  The state assumes that the school district will collect all 18 mills on non-homestead property. The district will need to eliminate this amount from its annual operating budget. 

Please call the superintendent’s office at (231) 821-1700 or email abayne@holton.k12.mi.us for more information on the district’s millage proposal.