25LINKBUDGET(FULL) - Flipbook - Page 52
City of Plymouth 2024 / 2025 Budget
Headlee Millage Roll-Back Formula
HEADLEE MAXIMUM MILLAGE ROLL-BACK FORMULA:
This formula calculates the reduction in the maximum allowed operating millage rate so that it does not
grow in tax value from the effect of Taxable Value (TV) increases by more than the inflation rate.
(Previous Yr's Total TV - Deletes) x Curr. Inflation Rate
(Current Year's Total TV - Adds)
CURRENT REDUCTION FRACTION =
The CURRENT MAXIMUM OPERATING MILLAGE RATE is calculated by multiplying the Maximum
Millage Rate in the Charter by the Previous Reduction Fraction and the Current Reduction Fraction.
OPERATING
REFUSE
CURRENT STATE INFLATION RATE:
MAXIMUM LEGAL MILLAGE RATE:
PREVIOUS YEAR MAXIMUM RATE:
CURRENT YEAR REDUCTION FRACTION:
1.0510
15.0000
10.3410
0.9970
1.0510
3.0000
2.0661
0.9970
MAXIMUM OPERATING RATE:
10.3099
2.0599
TRUTH IN TAXATION MILLAGE ROLL-BACK FORMULA:
not grow in tax dollar value from the effect of SEV increases without a specific decision by the
City Commission to raise such additional taxes after a public hearing.
(Previous Year's Total TV - Deletes)
(Current Year's Total TV - Adds)
CURRENT BASE TAX RATE FRACTION =
The Current Year Operating Millage which can be levied without a special public hearing is then
calculated by multiplying the Previous Year's Operating Millage by the Base Tax Rate Fraction.
OPERATING
10.3410
0.9485
PREV OPERATING RATE:
CURR TAX RATE FRACTION:
CURR OPERATING RATE:
No inflation-rate increase:
With inflation-rate increase:
9.8089
11.3128
REFUSE
2.0661
0.9485
1.9598
2.2605
NET IMPACT ON TAX REVENUE:
The Headlee Roll-back Formula results in the City's maximum permitted operating millage rate being
reduced each year over the previous year and, therefore, has a significant impact on the City's budgetary
process.
The Truth-in-Taxation Formula indicates the actual operating millage rate which may be levied for the next
fiscal year without calling a special public hearing to consider a tax increase by raising the millage rate
within the Headlee-formula maximum limit. Because the City currently establishes it's annual operating rate
at the Headlee-formula limit, the Truth-in-Taxation formula produces the same millage rate limitation as the
Headlee formula. The impact on typical residential and commercial/industrial property owners is as follows:
2022
TV
2023
TAXES
TV
TAXES
Typical Residential Taxpayer
$100,000
$4,231.71
$105,100
$4,468.23
Typical Comm/Ind Taxpayer
$150,000
$9,047.57
$157,650
$9,540.05
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