Property Tax Politics

Yesterday, I had the opportunity to participate in a workshop on property taxes put together by MSU and WSU.  Held in the House Office Building it featured speakers from think tanks, academia and others discussing the history of property taxation in Michigan, across the country and what's happening in the real world given the current housing/foreclosure crisis.  I picked up a report issued by the Lincoln Institute of Public Land Policy which focuses on the past thirty years of property tax assessment limits across the country.  Good read.  One of its conclusions is that "limiits on assessed values.... are a deeply flawed means to counter rising property taxes."  At nearly the same time, and just up the street, the Senate Finance Committee was debating a constitutional amendment, SJR H, which would put in a place a "super-cap".  Despite strong valid arguments made by the League and others in opposition, SJR H passed out of committee on a partisan vote.  The last thing we need to do is chip away at one of the blocks of municipal finance at a time when locals are already struggling to maintain essential services that are key to providing a high quaility of life in our communities.  Perhaps an alternative would be to enhance the state homestead property tax credit.  If state lawmakers want to give homeowners relief they should look to the state budget instead of passing the buck to locals.