It has been a long time since Truth In Taxation has been used by most government bodies. The conditions under which it is profitable are becoming perfect. So, before you go voting for any more millages, no matter how small, make sure you will be able to pay for them.
Amendment passedto limitthe amount of revenue government could
collect. It basically limits revenue increases to the CPI (inflation).If the revenue exceeds that amount, the
millage must roll back.
In 1994 Proposal A passed. Unlike Headlee, it was
concerned with the taxable value of individual property. It capped annual
increases in your taxable value at the CPI (inflation) or 5% whichever is less.
applied against the taxable value.
So while proposal A deals with capping your individual assessment, the Headlee Amendment regulates government revenue to the rate of inflation and the number of mills that can be levied to reach that revenue.
For years most of our assessment values increased every year beyond the rate of inflation. As a result the Headlee Amendment caused millages to roll back to keep revenue from exceeding the inflationary limit. Since the bubble our property values have been declining. The amount of revenue, because of low inflation rates, caused government bodies to seek Headlee overides which required them to go to the ballot with their request.
Predictions are that inflation will become very serious after the first of the year. The drought will cause food prices to rise, trouble in the middle east will force oil and gas prices to rise effecting the trucking and other transportation systems, housing prices are creeping up, early slaughter of cattle because of crop failure and the Federal Reserve will probably increase interest rates. All this will be going on while unemployment will still be high and wage increases will almost be unheard of.
MCL211.24e (in part) provides that a local taxing unit could approve and levy a millage rate for operating purposes in excess of the Base Tax Rate (BTR) after providing a notice of public hearing in a newspaper, establishing the proposed additional millage rate by resolution, holding the public hearing, and approving the levy of the additional millage rate.
This means that any millage that has been rolled back as a result of Headlee can be increased up to the voted level, or that portion necessary, if inflation determines it can be. That means any millage that was rolled back can be rolled up by a simple hearing by the governing body that can happen almost without you being aware. This might result in multiple increases on every level of government. Be aware of these hearings - your ability to pay you taxes may depend on it.
The WCTA was organized in March of 1982 because of a deep concern over rapidly escalating and unjust property tax assessments. We are a non-profit, non-partisan volunteer taxpayer organization dedicated to obtaining fiscal integrity and responsibility from all levels of government.
In July of 1982, we incorporated with the State of Michigan and proceeded to build our membership. We have resolved that our elected officials should be more accountable to their constituents for their actions.
We believe that individuals can be effective but that together we can be even more effective. We hold regular membership meetings and also sponsor special and educational meetings on topics of interest to our members and the general community.
Only through a vigilant watch of the government can taxpayers ensure that our government is operating responsibly and efficiently.
Information is a very important ingredient of the WCTA. Our newsletter is sent to all members and we try to keep them apprised of existing and pending legislation that will directly affect their lives.
Contact us at: http://www.wctaxpayers.org