Inflation driving up property taxes across Mid-Michigan
Homeowners seeing largest property tax jump since 2009
LANSING, Mich. (WILX) - People across Mid-Michigan are noticing big changes to their property tax bills.
Homeowners are seeing the largest jump in their property taxes since 2009, and tax experts said it’s even worse if you just bought your home.
“Housing affordability is at an all-time high,” said Mark Skidmore, Michigan State University economics professor.
That includes property taxes. Many people are getting their tax bills this week, and they are up quite a bit from last year’s.
“Existing homeowners are going to see a five percent increase which is substantial compared to previous years,” said Skidmore.
That’s because Michigan ties property taxes to inflation, which was more than 6% when tax rates were set last November.
Many Lansing homeowners told News 10 they’re frustrated taxes are going up so much. Skidmore said homeowners can expect more of the same next year.
“I don’t’ know how long that inflation rate will last, but I think we’re in for a little while,” he said.
The people who are seeing the largest increases are people who bought their homes in the last year. That’s because taxes jump when property changes hands.
“The taxable value is then uncapped to meet the assessed value,” said Sharon Frischman, Lansing’s Assessor.
Frischman’s office sends out the property tax bills twice a year. She said even though people are paying more, the city isn’t sitting on a larger pile of cash.
“We are generally limited to inflation as well,” said Frischman.
Skidmore said renters can expect to pay for the tax increases too.
“In order to keep things moving forward, at least some of that increased property tax bill is going to be passed on to renters,” said Skidmore.
The Michigan Department of Treasury has a property tax estimate tool online so you can see how much your property tax will be before you buy a new home.
There are some relief programs for people to use, just contact your local assessor to see if you might qualify for those programs.
- Saving strategies change as inflation continues climb
- Powell: ‘No guarantee’ Fed can tame inflation, spare jobs
- US consumer confidence slumps to lowest level in 16 months
Copyright 2022 WILX. All rights reserved.
Subscribe to our News 10 newsletter and receive the latest local news and weather straight to your email every morning.