FLUSHING - In an effort to help homeowners understand the ongoing impact of the 1994 change known as Proposal A and explain efforts to ease the burden on working families by fixing Michigan's outdated property tax system, State Representative Richard E. Hammel (D-Mt. Morris Township) will hold a town hall meeting on Monday, Oct. 6.
"The conditions of Proposal A are hurting working families in this tough economy because it allows property taxes to increase even as their home's market value drops," said Hammel, a sponsor of legislation in the Michigan House to end that unfair practice. "I am bringing local and state officials together along with homeowners so we can all start a discussion about meaningful property tax reform that will protect both our homeowners and our communities."
The town hall meeting will take place from 6 p.m. to 8 p.m. on Monday, Oct. 6, in the auditorium of Flushing High School. The address is 5039 Deland Road.
Currently, Proposal A stipulates that a home's taxable value can increase annually by 5 percent or the rate of inflation, whichever is less, as long as ownership does not change hands. The actual market value of many homes in Michigan is dropping, though, due to the struggling economy and sagging real estate market, causing an unfair tax burden in a time of high foreclosure rates. The plan proposed by Hammel and State Representative Richard LeBlanc (D-Westland) would change the law to guarantee that when a homeowner's assessed State Equalized Value (SEV) decreases, the property's taxable value will not increase.
The town hall on Monday will include a presenter from the nonpartisan House Fiscal Agency and the Genesee County Equalization Directory to explain how Proposal A works and the possible impact of the proposed legislation. Everyone is welcome to attend.