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 (notfor 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.
