Look around: YOUR taxes could be much higher

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