11 things every Michigan taxpayer should know
Comparatively, Michigan’s tax burden is low – and getting lower.
Look around: YOUR taxes could be much higher.
Michigan gives more tax breaks than it collects for schools/gov’t.
The definition of “Anti-tax conservative” has changed
Why might taxes seem high to YOU?
The motivation for a state income tax cut.
What might YOU get out of an income tax cut?
Snyder is a Republican. Why his experts want to spend more.
Can we cut taxes and spend more on education/infrastructure?
Nationwide, three taxes – income, property, and sales – account for more than 90 percent of all state and local tax revenue. Compared with other states, Michigan is pretty taxpayer friendly:
HOW MICHIGAN’S MAJOR TAXES COMPARE ACROSS ALL 50 STATES
MICHIGAN’S RANK (#1 being the most competitive)
- Corporate taxes: 8th
- Income taxes: 14th
- Sales taxes: 9th
- Property taxes: 25th
Source: Tax Foundation “2017 State Business Tax Climate Index”
Now, look at Michigan’s least competitive performance in those rankings – property taxes. Nearly a quarter-century ago, Michigan arrested rapidly rising property taxes which were literally pricing some people out of their homes. By approving Proposal A in 1994, Michigan voters shifted some tax burden to sales taxes and capped future increases in property taxes.
Michigan residents lost billions of dollars in property value in the Great Recession. As property values plunged, property taxes also dropped. But as property values recover, property tax increases are capped at 5 percent or the rate of inflation, whichever is less. That leaves property tax revenues flowing into state and local coffers far below pre-Great Recession levels. Effectively, Michigan residents are paying 11 percent less in property taxes now than they were before the Great Recession:
MICHIGAN’S RECENT PROPERTY TAX “CUT”
Total State/Local Property Taxes in Michigan
- 2004: $15.1 billion
- 2014: $13.2 billion
- Change: -13%
State Population
- 2004: 10.06 million
- 2014: 9.91 million
Property Tax Revenues per State Resident
- 2004: $1,504
- 2014: $1,335
- Change: -11%
Source: Census Bureau State & Local Govt Finance Data
Tax figures presented in inflation-adjusted 2014 dollars.
NEXT: State government gives more tax breaks than it collects for schools and general government
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