UPDATE: Notice of Public Hearing on Increasing Property Taxes

This was just posted less than an hour ago on their website and sent out by email.  This is what should have been done first, before that half-a$$ed notice was posted in the Birch Run Bridgeport Herald. At least this notice does properly explain what it is about and how it works. 
This part did catch my attention -- 
" You’ll see that the public notice also mentions revenues for the Township will increase 1.10% even if the “proposed additional millage” is not adopted. These increased revenues are due to the fact that the economy is rebounding, and housing values are up. According to current calculations, we can expect to collect an additional 1.10% in property tax revenues because property values are expected to rise."
Maybe then Bridgeport could let the automatic rollback happen and save the taxpayers some money.  Just a thought!!

 

Notice of Public Hearing on Increasing Property Taxes

The Township Board of the Charter Township of Bridgeport will hold a public hearing on a proposed increase of 0.0625 mills in the operating tax millage rate to be levied in 2019.

The hearing will be held on Tuesday August 6, 2019, at 6:00pm at 6740 Dixie Highway, Bridgeport Michigan 48722.

A resolution confirming the proposed millage rate will go before the Township Board of the Charter Township of Bridgeport immediately following this public hearing.

If adopted, the proposed additional millage will increase operating revenues from ad valorem property taxes 1.34% over such revenues generated by levies permitted without holding a hearing. If the proposed additional millage rate is not approved the operating revenue will increase by 1.10% over the preceding year's operating revenue.

The taxing unit publishing this notice, and identified below, has complete authority to establish the number of mills to be levied from within its authorized millage rate. This notice is published by: Charter Township of Bridgeport 6740 Dixie Highway Bridgeport, Michigan 48722 

TRUTH IN TAXATION

What IS Truth in Taxation?
Truth in Taxation (Act No. 5, PA of 1982). Any increase in the total value of existing taxable property in a local taxing unit must be offset by a corresponding decrease in the tax rate actually levied so that the yield does not increase from one year to the next. The rollback may be reversed by a special vote of the legislative body of the local unit provided that the action is preceded by a public advertisement and hearing.

Truth in Taxation (Public Act 5, 1982). This law requires that all taxing jurisdictions (including schools) that levied more than one mill in the prior year annually roll back tax rates for operating purposes to offset increases in values of existing property within the taxing unit. In effect, the levy on existing property (excluding new construction and improvements) cannot exceed the total dollar levy of the prior year. The local governing body may increase the levy beyond the prior year amount by publishing a public notice and approving the increase after a public hearing. The law is intended to inform the taxpayer that annual property tax increases are not solely a result of increases in property values but also a result of the tax rate annually imposed by the local governing body. The first step in calculating a truth in taxation rollback is to divide the prior year SEV (minus losses) by the current year SEV (less new construction and improvements). The quotient, called the base tax rate fraction, is multiplied by the prior year operating tax rate to determine the base tax rate.

In order for a local governing body to impose a tax rate greater than the base tax rate, a public notice must be issued, and a public hearing must be held. The public notice must specify the additional millage rate over and above the base tax rate to be levied. The base tax rate, combined with the additional millage rate, cannot exceed the local unit's maximum authorized millage rate (For Bridgeport Township - this number is 4.7332). After a public hearing, which may coincide with the hearing on the local unit's budget, the local governing body must adopt a separate resolution or ordinance to levy the additional millage rate.

What does that mean?
Michigan Compiled Laws 211.24e gives the Township Board the option to continue to collect our current millage rate of 4.7332 for operating purposes via a public hearing. Without this hearing, the Townships millage rate would decrease to 4.6707 (*a millage rate is the tax rate per thousand dollars of taxable value). By conducting this hearing, the Township is able to avoid the Truth in Taxation Rollback of the millage to 4.6707 and continue to collect the 4.7332 millage rate to support general operations of the Township.

The law requires we publish a very specific notice that includes words such as “proposed additional millage.” However, the proposed millage in the budget is the same as last year, and the previous 10 years. This millage rate of 4.7332 is collected for the purpose of Township Operations. You’ll see that the public notice also mentions revenues for the Township will increase 1.10% even if the “proposed additional millage” is not adopted. These increased revenues are due to the fact that the economy is rebounding, and housing values are up. According to current calculations, we can expect to collect an additional 1.10% in property tax revenues because property values are expected to rise.

The taxing unit (Bridgeport Charter Township) has the complete authority to establish the number of mills to be levied from within its authorized millage rate.

Again, there is NO proposal to raise the property tax rate at this time beyond what we have collected for the past several years. Attached is a copy of the resolution that will be presented to the Township Board.

What does this mean in dollars???
For the Township, the calculations look like this:
With the Truth in Taxation Hearing:
Taxable Value $223,406,507 x 4.7332 = $1,057,427.68
Without the Truth in Taxation Hearing:
Taxable Value $223,406,507 x 4.6707 =$1,043,464.77
Additional Revenues Collected from Truth in Taxation Hearing: $13,962.9

For the Taxpayer, the calculations look like this:
With the Truth in Taxation Hearing:
Avg Taxable Value of $50,000 x 4.7332 = $236.66
Without the Truth in Taxation Hearing:
Avg Taxable Value of $50,000 x 4.6707 = $233.54
Additional Amount of Taxes paid with Truth in Taxation Hearing: $3.12

What do these taxes do, where do they go?
These tax funds are spent on general operations of Bridgeport Charter Township. The township operating millage is only a portion of the total millage that a resident pay. A property with a taxable value of $50,000 will have an annual tax bill of $1,486.67 however, with this hearing, $236.66 of the total $1,486.97 goes to the Township for General Operations (without the hearing $233.54 goes to the Township).

This hearing does not change any other millage that is collected on property taxes (ie: Delta College, Saginaw County Intermediate Schools, Sheriff Dept, Mosquito Control, etc).


****This is the original post that appeared in the July 31st issue of the Birch Run Bridgeport Herald.  Does anyone know whether these types of notices are supposed to be signed by the township clerk?