Grant Township, Cheboygan, Michigan

   Many homeowners are understandably upset when they get their property tax bills. They know that their property values are going down and can't understand why their property taxes are going up!

   It goes back to the Headlee Amendment to the Michigan Constitution adopted by the voters in 1978. Proposition A (as it is also called) capped tax increases in a given year to the lesser of the rate of inflation or 5%. When you buy or build your house your taxable value (TV) and your State Equalized Value  (SEV - which is supposed to be 50% of market value) should be the same. However, as time goes by in a robust economy, the SEV tends to become larger than the TV as property values rise while the TV increases are capped.

   But what happens when property values DEFLATE while the overall cost of living steadily rises - like now. Even though your property value (SEV) has fallen, after years of disproportionately rising above the TV, it is more than likely still higher than your TV. As long as  your TV is less than your SEV, the Headlee Amendment demands that your TV - your taxes - go up by the rate of inflation or 5%, whichever is lower. (The current cost of living index for the rural midwest indicates that the inflation rate exceeds 4.2% despite the fact that housing values are down dramatically.) When your TV eventually matches your SEV again, you will not be taxed more than  your house is worth (your SEV)

   This won't make you any happier, but it may help you understand why your property taxes are still going up and may save you the time of demanding an explanation at a local Board of Review hearing. The local board really has no choice in applying the Headlee Amendment.

Website navigation

About Us

Contact Us

Dates To Remember

Board Meeting Minutes Archive

Treasurer's Quarterly Report

Frequently Asked Questions

Township opportunities and information of interest

Links of Interest

 Get involved!

Grant Township Board Meetings are your opportunity to "hear" and "be heard" about local   issues that concern you. Many of the taxation, representation and governmental service issues that affect your life are discussed, disected redesigned and acted upon at every meeting. Consider setting aside 2 hours once a month to make your opinions a part of this process. Go to the DATES TO REMEMBER page within this website for dates and times.

CONTACT US

 Send Us