CITY OF MIDLAND

 

ROLLBACK PROVISIONS

 

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

                        2,372,839,073

 

2004 MRF =    2,416,638,663

                        2,372,839,073

 

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.

 

 

 


Page 2

 

Truth in Taxation Rollback (1982 P.A. 5, Sec 211.24e M.C.L.)

 

Since the City of Midland is in compliance with section 16 of the Uniform Budgeting and Accounting Act, P.A., 2 of 1968, being section 141.436 of the Michigan Compiled Laws, additional public notice of increasing property taxes is not required for 2004.  The calculations however, are shown below.

                                                                                                                                                     Required information:

 

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

                        2,372,839,073

 

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.

                                                                                                                                                                                                                                                                                                                                                
Page 3

 

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

                                                      on SEV                            

 

                                                =   2,425,188,600          

                                                     2,425,188,600

 

                                                =   1.0000

 

Allowable Rate     =      Max Authorized Operating Rate x Total AV                       

                                    Total State Equalized Value

 

                              =    17.87* mills x 2,425,188,600

                                    2,425,188,600

 

                              =    17.87 mills, allowable tax rate

 

*The maximum authorized millage rate of 17.87 as computed under Headlee Rollback.

 

Respectfully submitted,

 

 

 

Roger J. Elbers

Deputy City Assessor

3-25-04

 

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