2004 Assessment Year for 2004-2005 Fiscal Year
Headlee Rollback (Constitution, Art 9, Sec 31 and 211.34d M.C.L.)
If the taxable valuation (TV) of property excluding the value of new construction and improvements, increases by a larger percentage than the increase in the General Price Level (as measured by the annual average of the United States Consumer Price Index for all urban consumers) from the previous year, the maximum authorized rate (operating millage rate) applied shall be reduced to yield the same gross revenue from existing property, adjusted for changes in the General Price Level.
The 2004 Millage Reduction Formula (MRF) is calculated as:
2004 MRF = (Total 2003 TV - 2003 Losses TV) x Inflation Rate Multiplier
Total 2004 Taxable - 2004 Additions TV
2004 MRF = 2,393,841,600 - 31,535,967 x 1.023
2,425,188,600 - 52,349,527
2004 MRF = 2,362,305,633 x 1.023
2004 MRF = 2,416,638,663
2004 MRF = 1.0185
The current year Millage Reduction Fraction cannot exceed 1.0000 in the computation of the maximum allowable millage. The 2004 millage rate permanently reduced multiplied by 1.000 results in a maximum allowable millage rate for 2004 of 17.87 mills.
Truth in Taxation Rollback (1982 P.A. 5, Sec 211.24e M.C.L.)
Since the City of
1. 2003 Total Taxable Value (TV) 2,393,841,600
2. 2004 Total Taxable Value 2,425,188,600
3. 2003 Losses TV, without transfers 31,535,967
to another classification
4. 2004 Additions TV, without 52,349,527
transfers to another classification
5. 2004 CPI = 1.023
The Base Tax Rate Fraction (BTRF) is calculated as:
2004 BTRF = 2003 Total Taxable - 2003 Losses TV
2004 Total Taxable - 2004 Additions TV
2004 BTRF = 2,393,841,600 - 31,535,967
2,425,188,600 - 52,349,527
2004 BTRF = 2,362,305,633
2004 BTRF = .9956
The Base Tax Rate (BTR) is calculated by multiplying the Base Tax Rate Fraction (BTRF) by the operating tax rate levied in the immediately preceding year.
BTR = 2003 Operating Tax Rate x BTRF
BTR = 12.26 x .9956
BTR = 12.2061
The Base Tax Rate of 12.2061 multiplied by the 2004 estimated Taxable Value of 2,425,188,600 equals $29,602,094.57 or the Base Operating Levy in dollars that can be derived from the Base Tax Rate for city operations for the Fiscal Year 2004-2005.
Truth in Assessing (1981 P.A. 213, Sec 211.34, M.C.L.)
Under Public Act 213 of 1981 as amended, the City is restricted to an operating levy based on the local taxable value based on the assessed valuation total rather than a full levy based on the taxable value based on the State Equalized Valuation.
The Truth in Assessing rollback fraction is calculated as:
2004 Sec 34 rollback fraction = Total Taxable Value Based
on Assessed Value
Total Taxable Value Based
Allowable Rate = Max Authorized Operating Rate x Total AV
= 17.87* mills x 2,425,188,600
= 17.87 mills, allowable tax rate
*The maximum authorized millage rate of 17.87 as computed under Headlee Rollback.
Roger J. Elbers
Deputy City Assessor