The proposal does not require any taxing authority to adopt or eschew any particular response. Depending on the size of its revenue reduction, a taxing authority could:
- Reduce, cut, or defer services, programs, staffing, maintenance, or capital projects
- Use available reserves on a temporary basis
- Increase its millage rate within applicable constitutional and statutory limits
- Increase existing fees or establish new charges for services
- Use special assessments where legally authorized
- Seek more state, federal, or grant funding, and/or
- Use some combination of these approaches
Any millage-rate increase, fee, assessment, service reduction, or other budget action would be considered separately through the applicable and established public processes. Some entities may determine no adjustment strategy is needed.
For this reason, the ultimate effect of the proposal may depend not only on the amount of a property owner’s new exemption, but also on the budget and revenue decisions made by each taxing authority appearing on the property-tax bill.