Advantages & Benefits

The primary benefit of requiring an actual, mathematically-derived millage rate is that honesty will be encouraged in the most fundamental facet of the taxation process.

"Politics" Minimized

The effect of "politics" on the process will be minimized; an opportunity for improper influences on the process eliminated.  No longer would the millage rate be a variable in the process, subject to the whims of elected officials.

It could no longer be used as a way to hide overtaxation. A mathematical millage would ensure that the taxpayer will be required to pay no more and no less than is necessary to fully fund the budget.  The millage rate would have an actual connection to the budget that it is intended to fund, a connection that does not exist today.

Fiscal Conservatism

The emphasis of the public finance process would properly be shifted to the cost of government (the budget), the only variable left to levying authorities. By taking the millage rate out of the politicians' hands, they will be compelled to keep the cost of government at a reasonable level, justifying every dollar, or be forced to explain why the millage rate must increase.  Fiscal conservatism during the budget process will be the result.

The much desired year-end surplus will result from frugality during the fiscal year, and not from an artificially inflated tax rate.  Fiscal conservatism throughout the year will be encouraged.

Benefits of frugality passed to the taxpayer

When the millage has a mathematical connection to the budget, the financial benefits of public frugality are passed directly to the taxpayer. If the cost of government to be funded by the taxpayer does not increase at the same percentage as the tax digest, the millage rate must decrease. When elected officials hold the line on expenses, the taxpayers receive a "tax cut."

Innovative Public Financing

Officials would be encouraged to seek new and innovative opportunities for non-tax revenue.  The larger the portion of the budget that is covered by licenses, "user fees" and service charges, the fewer property tax dollars that will have to be collected from constituents. For example, in areas experiencing accelerated growth (and thus rising property values), there will be greater motivation to impose impact fees to charge the cost of infrastructure development and improvement to the folks who will benefit from it the most, and not to taxpayers city- or county-wide.

Tax Simplification

The tax rate computation process would be greatly simplified.  It is "'A' divided by 'B' equals 'C'"... the necessity for "rollback rates" and "millage equivalents" is eliminated.  The taxpayer will better understand how his tax bill is generated.

Politicians Protected... sorta

The fear of political retribution experienced by city council members and county commissioners would be, to some extent, alleviated. The millage rate would be the result of a simple math problem and not the politically-influenced vote of an elected body.

Elected officials would be relieved of the fear of voter outrage at an "emergency" tax increase to avoid yet another deficit. Jurisdictions that have been operating at a perennial deficit will be able to justify needed increases in the tax rate.

If elected officials suffer the wrath of the voters over the public finance process, it will be because they failed to keep the cost of government at a reasonable level or failed to find non-tax ways to finance government, not for "raising taxes."

Currently, politicians brag that they have "cut taxes" when, in reality, they have simply rolled back the rate to match growth in the digest-- not a true "tax cut" at all. A lower millage will provide actual "bragging rights" for politicians because it will be evidence that they held the increase in the cost of government to a slower pace than that at which the property values in their jurisdiction are increasing.

Finally...

The impact of rising assessments-- the infamous "back door tax increase"-- would be mitigated.  As the tax digest increases, the millage rate will decrease... as long as elected officials hold the line on the cost of government.  The greatest benefit will be to property owners in fast-growing areas, especially the elderly and others on fixed incomes.

The goal sought by Section 1 of "The Taxpayers' Bill of Rights" will be achieved in a more efficient, more transparent manner.¹

Next: What You Can Do

1. Reassessment of an individual property may result in a higher tax bill even when the millage rate decreases.  However, a mathematical millage will provide an actual tax reduction when the individual property's assessed value does not increase by the same percentage as the tax digest as a whole.