- Increases taxes and generates additional revenue.
- Generally, for a fixed number of year (5 years is most common).
- Voter approval needed to extend the term of a limited levy when it expires.
- Must state the same purpose as the original levy.
- The effective rate of the renewal begins from the point where the original levy ended.
- Does not increase taxes but generates approximately the same amount of revenue as the year before.
- Extends the term of a levy when it expires.
- Differs from renewal levies because the replacement begins with an effective rate equal to the original effective rate of the levy which it replaces.
- Increases taxes, however, not as much as additional levies. For example: A 1.0 mill current expense levy first passed in 2000 is currently being collected at 0.76 mills as a result of increased values. The replacement of this levy would restore the rate to 1.0 mills or an increase of 0.24 mills.
- Can be passed with an increase or a decrease of the original millage. For example, a two mill levy originally voted on five years ago, may be put on the ballot now as a replacement with a decrease, if only one mill is currently needed for the same purpose as the original levy.
- Limited levy proposed up to five years for a specific dollar amount. The millage rate required to produce the dollar amount changes on all types of property if property values change.
- Exempt from the 20 mill floor limit.
- Property tax levies used to provide the local revenue for construction purposes. Proceeds from the levy are used to pay the principal and interest on construction bonds. Offered for a specified dollar amount and a specified period of time.
- Money can only be used for purpose stated on the ballot (not for operating expenses).
- Is the same as additional levies, however, is imposed for a continuing period of time with no expiration date.
- May be replaced in order to generate additional revenue at any election in any year, however, may only be submitted to the voters once per year.
- Levy proposing millage rate or school district income tax that is assessed indefinitely.
- Used to raise funds for any legal expenditure.
- Most often used for day-to-day operation of school districts (books, salaries, supplies, equipment, building maintenance, etc.).
- May be either for a limited period (i.e., 3 years) or an indefinite period.
- Revenue does not increase as market value increases.
Permanent Improvement Levy
- Raises funds for a specific permanent improvement(s) (construction and repair of buildings, sidewalks, parking garages, etc.).
- Factor applied to the assessed valuation of real and personal tangible property to produce tax revenue. A mill is defined as one-thousandth (.001) of one dollar or $1.00 for every $1,000.00 of assessed value of property.
- The actual rate of taxation realized when the tax reduction factor reduces the taxes charged by a voted levy.
- Maintains the existing level of taxes paid on voted millage.
- The taxing district collects the same amount of revenue that was voted regardless of increased property values, except for added value from new construction.