Great Lakes Politics

Michigan Senator Gilda Z. Jacobs (D-14, Huntington Woods) and Michigan Representative Paul Condino (D-35, Southfield) are praising Governor Jennifer M. Granholm’s (D, MI) signing of PA 648, which will allow the Southfield school board to lower the school operating millage to 18 mills for primary residences in this school district.  The funding implementation will be addressed during the next legislative session.

The existing Proposal A funding formula inadvertently penalizes communities with large commercial tax bases.  Southfield school district, which includes Lathrup Village, is one of two districts helped by the new law.  The legislation will save the average Southfield homeowner approximately $77 annually.

“This reduction, while modest, is an important tool to attract and retain homeowners to aging Detroit suburbs,” Ms. Jacobs explained.  “It’s a way to address an inequity that is inherent to Proposal A.”

In most communities throughout the state, primary residence owners pay 18 fewer school operating mills than other property owners.  However, in Southfield and Lathrup Village, taxpayers pay the same millage rate whether or not they own a primary residence.  River Rouge is the second community adversely affected by Proposal A.

"Homeowners should not be punished with higher tax bills than their neighbors because the district has fewer homesteads to tax," Mr. Condino said.  "I thank the Legislature for their overwhelming bipartisan support of HB 4125, which will allow residents of Southfield and Lathrup Village to enjoy a small amount of the property tax relief other homeowners have long enjoyed under Proposal A."

Under the legislation, non-primary residence rates, including business and rental properties, would remain at the current rate as approved by voters.