Levy Information
Types of Levies

Additional Levy

  • Increases taxes and generates additional revenue.
  • Generally, for a fixed number of year (5 years is most common).

Renewal Levy

  • 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.

Replacement Levy

  • 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.

Emergency 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.

Bond Levy

  • 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).

Continuing Levy

  • 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.

Operating Levy

  • 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.).

Millage

  • 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.

Effective Mills

  • The actual rate of taxation realized when the tax reduction factor reduces the taxes charged by a voted levy.

Reduction Factor

  • 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.