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HB 6029

Education: financing; limitations on mills levied for school operating purposes; revise. Amends secs. 1211 & 1211a of 1976 PA 451 (MCL 380.1211 & 380.1211a).

2023-2024 Regular Session Introduced by Joey Andrews

HB 6029 would rewrite school operating millage caps and exemptions, tying local levies to 1994–95 foundation allowances and growth limits, changing who pays for schools.

bill electronically reproduced 11/07/2024
#education:financing #propertytax:millage
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Bill Summary · HB 6029

Summary — HB 6029 (House Bill No. 6029)

Status: Introduced Nov. 7, 2024; referred to Committee on Education. Subsequent committee actions in 2025; bill was indefinitely postponed/withdrawn and died in subcommittee (see Timeline/Status).

Purpose

HB 6029 would amend sections 1211 and 1211a of the Revised School Code (1976 PA 451) to revise limits, exemptions, and procedures governing the number of mills a school district may levy for school operating purposes. The changes concern how millage caps interact with foundation allowances, which property classes are exempt from levies, and rules for calculating allowable millage increases or reductions.

Key provisions (as contained in introduced version)

  • Millage cap: generally limits a school district to levying no more than 18 mills for school operating purposes (or the number levied in 1993 — wording in the bill text is partly truncated).
  • Class exemptions: principal residences, qualified agricultural property, qualified forest property, supportive housing property, property occupied by a public school academy, and industrial personal property are exempt from mills levied under this section, except to the extent that an exemption is reduced under specified rules.
  • Foundation‑allowance linkage: school districts that had a 1994–95 foundation allowance above $6,500 may reduce exemptions (i.e., levy on those exempt classes) by the number of mills required so that combined state and local revenue per pupil (for the 1994–95 year) equals the district’s 1994–95 foundation allowance. The department of treasury can determine sufficiency and certify additional mills.
  • Post‑1994 limits and growth control: after 1994, the mills a district may levy on any property class may not exceed the lesser of (a) the mills certified by treasury in 1994 or (b) the number needed so that the district’s year‑to‑year increase in combined state and local revenue per pupil does not exceed the lesser of (i) the dollar increase in the target foundation allowance under the State School Aid Act or (ii) the prior calendar year’s general price level (inflation). The bill references the 2018–19 target foundation allowance as the basic foundation allowance for that year for calculation purposes.
  • Commercial/industrial personal property: commercial personal property is exempt from 12 of the mills; if industrial personal property exemptions are reduced for a district, commercial personal property exemption must be reduced by the same number of mills.
  • Voter approval: millage under this section generally must be approved by school electors; prior approvals before Jan. 1, 1994 remain valid until expiration.
  • Pledging and adjustments: with state treasurer approval, districts may pledge such millage for certain loans or obligations. Excess tax revenue from levying beyond limits must be deducted from the next regular levy; shortfalls may be remedied by levying additional mills at the next regular levy (subject to limits).
  • Other restrictions: after 1993, districts may not levy mills allocated under the Property Tax Limitation Act for payment to public library commissions (with limited exceptions).
  • Note: the bill text provided is truncated toward the end and references additional provisions beginning with taxes levied for 2011; full introduced text may contain further specifics.

Who would be affected

  • School districts (their operating revenues and levy authority)
  • Property owners, including homeowners (principal residences), agricultural and forest landowners, owners of supportive housing, operators/occupants of public school academies, and owners of industrial and commercial personal property
  • Local taxpayers and school electors (via millage approval rules)
  • Michigan Department of Treasury (certification and determinations)
  • Entities involved in district borrowing (emergency loans, advances)

Potential impacts

  • Changes how much local property tax can be raised for school operations and which property classes are taxed — potentially shifting tax burdens among classes (e.g., reducing exemptions could increase taxes on residences or certain property types).
  • Affects school district revenue flexibility and alignment between local millage and state foundation allowance policy.
  • Could alter voter involvement in approving operating millage and the mechanics for making up shortfalls or correcting excess levies.

Timeline / Legislative history (selected)

  • 2024-11-07: Introduced by Rep. Joey Andrews; 1st reading; referred to Committee on Education.
  • 2025-01-22: Referred to Joint Committee on Government Administration and Elections.
  • 2025-03-04 to 03-05: Referred to State Affairs Committee and Intergovernmental Affairs Subcommittee.
  • 2025-05-03: Indefinitely postponed and withdrawn from consideration.
  • 2025-06-16: Died in Intergovernmental Affairs Subcommittee.

Note: This summary is based on the introduced version of HB 6029 as reproduced electronically (Nov. 7, 2024). Portions of the bill text in the supplied materials were truncated; consult the official bill text in the legislative record for full language and any amendments.

Compiled from official sources — confirm details with the bill’s official record.

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