The Solution

The solution to the problem is as simple as the calculation process itself:

1. Enact legislation that requires all jurisdictions with the authority to levy ad valorem taxes (cities, counties, consolidated city-county governments, schools) to set an actual, mathematically-derived millage rate each year¹;
    
2. Repeal Section 1 of the "Taxpayers' Bill of Rights" which requires a rollback of the millage rate based upon certain increases in the tax digest, additional public hearings and publication of a "Notice of Property Tax Increase;"
    
3. Require the levying authority to advertise the adoption of the millage rate. The publication shall include the two component figures of the rate setting process (budget and tax digest) and the proposed millage rate. Publication should be done in a manner no less stringent than current public notice requirements other than what is described in Section 1 of the "TBoR";

Additionally, we recommend and seek the following:

1. Require the levying or recommending authority to conduct a mid-fiscal year budget review during which the budget is adjusted, if necessary, to reflect actual expenditures and revenues to date;
    
2. Require additional public notice, hearings and other opportunities for public input during the budget-setting process;
    
3. Provide that non-compliance by the levying authority could result in the loss of revenue sharing funds and/or their salaries;
    
4. Incorporate training on the ad valorem tax process including the procedure for setting an actual millage rate into current training for newly-elected officials.  Make in-service training available to incumbents.

Next: Advantages & Benefits

State Legislators & Local Officials: MillageRate.com welcomes your inquiries and comments regarding this site and its recommendations. Representatives are available to provide a staff orientation on the millage rate setting process. Please contact us.

1. Legislation has reportedly been proposed recently which would make the calculation of the millage rate the responsibility of the county Tax Commissioner. The millage rate, however, can be a meaningful indicator of the taxing authority's ability to keep spending in check.  We believe that the responsibility for the rate should remain with the same elected officials who are responsible for the budget.