March 2013

The last library millage proposal took place
11/8/94.

Per Michigan state law, a district library’s operating
tax may not exceed 4 mills.


Voters approved 2.7 mills in perpetuity, .3 mills for
20 years, and 1 mill for 20 years for repair and
restoration of buildings and for restoring hours of
operation.
Headlee Rollback Factor: a millage may be reduced
by this factor.

A millage rate is equal to $1.00 per
$1000 of a property’s taxable value.

A millage may not be levied or
renewed without voter approval.

Once approved by voters, a millage
must be requested annually by a
taxing authority.

County assessment of properties is completed by 12/31 each
year & notices mailed to property owners.

State determines a SEV-state equalized value of every property
and applies factors to achieve a taxable value.

Through March 31st, property owners may challenge the
SEV/Taxable values at a Board of Review hearing.

The millage rates for all collections (i.e. police, fire, schools,
library) are applied to the taxable value to reach each property
owner’s amount of tax due.
Taxing
Authority
Real
Property
Tax
Personal
Property
Tax
Total
Levy Due
PLOS
City of Saginaw
1,692,084
375,144
2,067,228
Kochville
Township
500,321
92,654
592,975
Zilwaukee
158,563
33,749
192,312


The library’s largest source of revenue.
The library receives summer property tax revenue from the
City of Saginaw, Kochville Township, and the City of
Zilwaukee.

Property tax revenue currently includes real estate and
personal property taxes.

The amount of tax revenue changes annually based upon the
taxable value of all real and personal properties.

Property tax revenue may be reduced by non-payment and
foreclosures.
Total Taxable Value (TV)
$100,000 /1,000 =
$100,000.00
100 x millage rate
Current Library Millage Rate:
Maximum authorized
(Originally was 4, reduced by Headlee to 3.99470)
3.99470 x 100 = Property Tax Revenue
$399.47
In 2012 payments from the City of Saginaw, Kochville, and City
of Zilwaukee were reduced by the following:
Capturing Entity
2012
DDA – Downtown Development Authorities
$156,748
NEZ – Neighborhood Tax Incentives
IFT – Industrial Facilities Tax Abatement
Brownfield TIF – Brownfield Tax Increment Financing Act
Board of Review & Michigan Tax Tribunal Tax Adjustments
$1374
$3904
$11,732
$22,378
$196,136
The following michigan.gov link has detailed explanations of the
various tax abatements and exemptions that an entity may use:
http://www.michigan.gov/taxes

Beginning in July the taxing authorities (Saginaw, Kochville, and
Zilwaukee) will remit tax payments to the library as they are
collected – usually on a weekly/bi-weekly basis.

By April of the following calendar year, the final summer
payments have been made.

Delinquent local real estate taxes (not personal property taxes)
are paid to the library by Saginaw County.


If these taxes remain unpaid, the property is foreclosed upon
and the library is billed for the taxes that the County paid on the
tax payer’s behalf.
In 2011-2012 the library reimbursed the County over $90,000 in
charge backs for foreclosed properties.




Certain business properties located in renaissance zone areas
are generally granted a tax exemption for a specified number
of years.
State law once held libraries harmless for the loss of tax
revenue and reimbursed for the loss.
Renaissance Zone property taxes were paid to libraries by the
State until 2010 when the statute was amended to absolve
the state of its responsibility to reimburse these entities while
maintaining the tax credit.
State legislature opted to restore a percentage of
reimbursements to schools and colleges. MLA (Michigan
Library Association) is lobbying to have libraries included.
2008
2009
2010
2011
2012
Tax
Receipts
3,360,920 3,296,057 3,154,139 2,899,603 2,779,230
Ren
Zone/
PILOT
204,990
Single
271,734
Business
Tax / SBT
239,707
232,566
188,998
0
0
0
0
0




Penal Fines – State Constitution of 1963 requires that all
penalties collected for violations of state penal laws
(criminal and civil) be used for the support of public
libraries.
PLOS receives penal fine revenue from the City, Kochville,
Zilwaukee, Saginaw Township, Tittabawassee Township,
Buena Vista Township and others in our legal service area.
Annual distribution is made to library by the County
Treasurer based upon the library’s certified service
population.
Between 2008-2012 penal fine payments to the library
decreased 18% from $446,000 to $368,000


Public libraries may collect 50 cents per capita for their served
population if minimum standards of operation are met (i.e. hours open
to public, number of degreed librarians, collection standards,
programming, etc…).
State budget cuts reduced the per capita amount to $.19
in 2011 and $.22 in 2012.

Annual State Aid Report which measures minimum standards is prepared
and submitted to Library of MI by February 1st.

State aid payments are made in the winter and the spring.

Between 2008 and 2012 state funding paid to the library dropped from
$86637 to $56136 – a 35% decrease in funding.

http://www.michigan.gov/libraryofmichigan/
Total revenue from all sources in the past five fiscal
periods:
2008
2009
2010
2011
2012
6,120,573
5,482,465
5,261,979
4,775,997
4,365,102
Hard Facts




In five years PLOS has lost over $1.7 million in operating
revenue (approximately 29% of pre-recession revenue).
Tax abatements and exemptions will continue to increase as
Saginaw rallies to attract new businesses.
The State plans to cut personal property tax revenue to libraries
over the next 24 months-a possible loss of up to $500,000 to
PLOS.
Libraries are limited in the other kinds of revenue generators in
which they may participate (investments, securities, etc…)
Prepared for the
Public Libraries of Saginaw
March 2013
by
Neica Dey