LANSING – October 03, 2008 – (RealEstateRama) — A constitutional amendment to help homeowners facing property tax increases that are out of step with their home’s actual value has been introduced in the Michigan Senate by Sen. John Pappageorge, R-Troy.
“My resolution will help homeowners across the state save thousands of property tax dollars over the life of owning their home,” Pappageorge said.
Pappageorge’s resolution states that a homeowner facing a property value decrease would be taxed only at the previous year’s taxable value and not higher.
Senate Joint Resolution P also would limit increases in taxable property values to actual property value increases, rather than the rate of inflation.
For example, a home with a 3 percent increase in value would be taxed at 3 percent, rather than the current rate of inflation.
Under current law, a home’s taxable value increases at the rate of inflation or 5 percent – whichever is less.
“Michigan homeowners shouldn’t see their property taxes drastically outpace their property values,” Pappageorge said. “We must help ensure that taxes stay more in line with the increase of home values. I’m proud to sponsor this common sense resolution.”
If implemented, Pappageorge’s resolution would help homeowners across the state.
