LANSING – March 18, 2009 – (RealEstateRama) — With home values across the state plummeting while property taxes increase, Senate Democrats failed to approve a constitutional amendment designed to help homeowners facing property tax increases out of step with their home’s actual value, said sponsor Sen. John Pappageorge, R-Troy.
“My resolution was a simple concept that addressed fairness for Michigan taxpayers,” Pappageorge said. “A homeowner should not be paying higher property taxes while the value of their home declines. I’m dismayed to see this vital resolution fail by only two votes.”
Constitutional amendments require a two-thirds vote for passage, meaning at least 25 of the senators currently serving must support the measure. The reform failed by a vote of 23-11, with Democrats accounting for all 11 no votes.
Senate Joint Resolution H would have amended the Michigan Constitution to prevent an individual’s residential property taxes from increasing from the previous year if the assessed value of their home decreased during the same period.
If a homeowner’s property tax assessment actually fell below the taxable value of their home, Pappageorge’s resolution would allow for the taxable value to decrease with the lower assessment.
The average drop in home values in the 13th Senate District was 11.3 percent. Other nearby communities saw an almost 22 percent decrease in property assessments last year.
If implemented, Pappageorge’s resolution would have helped homeowners across the state.