The 1978 Headlee amendment to the state constitution mandates local governments and school districts to reduce their voter-approved millage rates whenever property assessments rise faster than the rate of inflation. The amendment, which allows school districts to levy up to 18 mills on business, rental properties, vacant land, second homes, vacation homes, and cottages was approved by lawmakers.
The amendment, penned by and named after Dick Headlee provided Michigan residents a shield in a battle to restrain government excess.
In 1999 voters in the Goodrich School District approved a 10-year, 18 mill levy on non-homestead properties. Since then the Headlee Amendment has softened the tax burden’true to the spirit of the law? for non-homestead property owners and has fallen back to 17.0405 mills.
If the millage has dropped by only .9595 mills, why is the Goodrich school district asking voters to approve a 3-mill increase?
In reality voters are being asked to skirt the law and approve 20.0405 mills for non-homestead. The remaining 2.0405 mills–which can’t be legally levied–would be used to absorb future Headlee rollbacks, ensuring the tax will remain at 18 mills, and business owners don’t realize the tax relief intended by the Headlee amendment.
In a 2002 interview with The Oxford Leader, Headlee was asked his input regarding a similar scenario when the Oxford School District suggested voters approved more than18 mills.
‘They can’t do that. I would challenge it. In my view, it would be contrary to the law to ask voters for anything over the 18 mills…It neutralizes the amendment and any tax savings to property owners.?
Unfortunately, Dick Headlee died in 2004, but his crusade and ideas still ring true.
As a side note, while this millage is not levied to primary home owners, contrary to what school districts say, it does affect all local homeowner. Local businesses, the ones who pay local taxes, give to local school groups and charities are the ones who get taxed. Economics 101, which we hope is still taught in schools, tells us if the cost of running a business goes up, so does the price of the goods or services that business produces. ‘Ordinary? home owner buy goods and services from local businesses — so if prices rise ‘ordinary? home owner are effected.