March 22, 2017
Property values are lagging throughout the state of Michigan. More than 1.4 million people – one in seven residents – are in communities in which property values are less than half of where they were before the recession. This, in turn, has impacted what cities can offer to citizens. Commercial real estate values, statewide, are 24% below the 2008 values.
Under the current Michigan law, increases in property values trigger increases in taxable values, creating a difficult cycle. According to Tony Minghine with the Michigan Municipal League, cities with the steepest declines will have trouble recovering, under the current state-funded structure. Without some kind of revenue-sharing program with the state, “the system is completely broken without (an increase in) revenue sharing,” Michigan State University’s (and former state treasurer) Robert Kleine told Crain’s Detroit Business.
For comments, questions or concerns, please contact Amy Sorter