We reviewed the terms of Ad Valorem taxes in surrounding counties.  Those levies averaged in the range of 25 – 30 years.  Guidance was obtained from legal counsel and other organizations experienced with Ad Valorem tax elections.  After careful consideration, it was determined to seek a 30-year term.

Millage rates are used in property tax assessments and are determined by the county commissions and other taxing agencies. Millage is the tax rate expressed in decimal form.

• A mill is one-tenth of one cent. (.001)
• 1 mill = $0.001
• 10 mills = one penny or $0.01
• 100 mills = ten cents or $0.10
• 1000 mills = one dollar or $1

Greenville City Limits - 42.5 mills

• City - 12.5
• Schools - 12
• County - 11.5
• State - 6.5

Georgiana City Limits - 43.5 mills

• City - 13.5
• Schools - 12
• County - 11.5
• State - 6.5

McKenzie City Limits - 35 mills

• City - 5
• Schools - 12
• County - 11.5
• State - 6.5

Outside City Limits - 30 mills

• Schools - 12
• County - 11.5
• State - 6.5

More information can be found at https://revenue.alabama.gov/property-tax/millage-rates/

In Alabama, property tax is based on property classification, millage rates, and exemptions.   The table below provides examples of the additional cost that a typical homeowner will incur if the proposed 6 mill increase is approved.  This table does not take into consideration exemptions such as farm land, individuals with disabilities, individuals over 65 years of age, etc. that may apply to some property owners.  Typically, agricultural property (farm land) is eligible for exemptions that result in a much lower tax.  The exemption for senior citizens can result in no cost in taxes for the property owner.  Detailed descriptions of the exemptions are available on the Alabama Department of Revenue website at    https://revenue.alabama.gov/property-tax/property-tax-assessment/ .

Estimated Property Tax Increase Chart

The Code of Alabama (section 16-13-185) directs that the expenses of conducting the election be paid out of the County Treasury.  Further, under the Alabama Code, the County will be paid annually, out of the proceeds of the new tax, the statutorily allowed fees for assessment and collection, amounting to 4% of the proceeds.  If the proposed tax passes, the Butler County Commission will receive approximately $56,000 annually.

The Alabama Department of Revenue provides a list of the property classes that are taxable on its website at   https://revenue.alabama.gov/property-tax/property-tax-assessment/  .  These include the following:

Class I - All property of utilities used in the business of such utilities

Class II - All property not otherwise classified

Class III - All agricultural, forest, and single-family owner occupied residential property, including owner occupied residential manufactured homes located on land owned by the manufactured home owner, and historic building and sites

Class IV - All private passenger automobiles and motor trucks of the type commonly known as “pickups” or “pickup trucks” owned and operated by an individual for personal or private use and not for hire, rent, or compensation

Yes, there will be an increase in the cost of all private passenger automobiles and motor trucks of the type commonly known as “pickups” or “pickup trucks” owned and operated by an individual for personal or private use and not for hire, rent, or compensation.  The table below illustrates the approximate increase 6 mills would generate.  A detailed table with increments of $1,000 is available at this link: Chart of Example Vehicle Increases.

The Butler County School System is legally required to report how all public funds are spent.  Two (2) budget hearings are conducted annually and are open to the public.  Financial reports are posted for public inspection on the system website and are available upon request from the Central Office.  The school system’s financial activities are continuously monitored by the Alabama State Department of Education throughout the year.  Further, the Alabama Department of Examiners of Public Accounts audits the school system annually and reviews all aspects of financial operations for local, state and federal funding sources.  A detailed report of their findings is made public at a school board meeting and it is also published on their official website.  A spending plan for the additional revenue from the Ad Valorem tax increase is provided at this link. 

After careful consideration, deliberation and consultation among the Board members and with various people across the state familiar with public school finance and local revenue opportunities, the Board decided to ask the Butler County Commission to hold the tax election on January 29, 2019, so that the new tax – if approved by a majority of the voters participating at the election – could be levied and collected beginning October 1, 2019, and the tax proceeds could be put to work in the County to improve education . The tax proceeds will be spend to improve educational opportunities for the students in Butler County as outlined in this plan.  The Code of Alabama (section 16-13-185) directs that the expenses of conducting the election be paid out of the County Treasury.  Further, under the Alabama Code, the County will be paid annually, out of the proceeds of the new tax, the statutorily allowed fees for assessment and collection, amounting to 4% of the proceeds.

If our taxpayers approve the plan, our local school tax millage will go from 12 mills to 18 mills.  This will cost the taxpayer with an average home in our community ($75,000 market value), an estimated $3.75 per month increase…less than a dollar a week.  The proposed 6 mill increase will generate approximately $1.4 million annually in additional revenue.  The categories in which the additional revenue would be spent include but are not limited to: Curriculum Resources, The Arts, Athletics, and Extra-Curricular Activities for both elementary and secondary students.  The funding would also go toward facilities, technology and current debt.

Please note that in most funding categories, the money would be dispersed by student enrollment to ensure equity of spending within the county.  Click here for example draft.

Butler County has a current Ad Valorem school tax rate of 12 mills compared to the State average of 18.2 mills.

BCSS Compared to State Average

Butler County ranks 133 out of 137 school systems.