25LINKBUDGET(FULL) - Flipbook - Page 47
City of Plymouth 2024 / 2025 Budget
year, the General Fund's maximum authorized levy stood at 11.3834 mills. Subsequently, the
City's maximum General Fund millage had been annually reduced from 2015 through 2022,
decreasing from 11.3128 mills to 10.3410. For the 2024 tax year, the millage rate will again
reduced to a new maximum of 10.3089.
The calculations performed by assessors, counties, and the state to establish property valuations,
coupled with the decisions made by local governing bodies to set millage rates, determine the
annual amount of tax revenue generated. However, the regulations governing the Downtown
Development Authority (DDA) and Brownfield Redevelopment Authority (BRA) alter the
distribution of these taxes, diverting a portion of the revenue from some or most taxing
jurisdictions to fund activities authorized under their respective plans.
In the case of the DDA, the growth in taxable value of the district, measured against its value in
1983, serves as the base for all eligible millage rates each year. Following statutes enacted in
1994 subsequent to Proposal “A”, local and intermediate school tax levies ceased to be eligible
for tax capture, except for projects that were already under contract or bonded at the time of the
legislation’s passage. The City had several projects meeting this criterion, allowing it to continue
capturing local school and intermediate school taxes until the debt on those projects expired in
fiscal year 2008/09. Since the 2009/10 fiscal year, all DDA tax capturing has been limited to City,
county, and library tax levies.
Under the laws governing the BRA, the City is prohibited from capturing any local school taxes
without state approval and from capturing any debt levies by any taxing jurisdiction. Unlike the
laws governing DDAs, this legislation defines intermediate school districts (ISDs) as local taxing
authorities instead of school systems, thereby permitting the capture of ISD operating taxes.
Furthermore, BRA tax capture can extend up to five years beyond the completion of site
remediation. These funds are designated for administrative reimbursements as authorized by
the act and serve as a seed funding source for future Brownfield projects.
Historically, the City has imposed and collected a nominal amount of Industrial Facilities Taxes
(IFT), special taxes governed by specific acts, collected in lieu of ad-valorem taxes. These taxes
offer a 50% abatement of ad-valorem taxes, excluding the State Education Tax (SET), and are
applicable solely to industrial and commercial real and personal property. However, the City
has not levied IFT taxes since the 2021/22 fiscal year.
The following pages offer detailed information regarding the expected assessment and tax base
of the City for 2024, pending the equalization processes. Additionally, historical and projected
data on millage rates for the City and all other taxing jurisdictions within Plymouth are provided.
The page titled “Headlee Millage Roll-Back Formula” outlines the calculations involved in
determining the Headlee rollback multiplier, which is tentatively set at 0.9959. This represents
the ninth rollback for the General Fund since the 2015 tax year.
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