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City millage increase may not be a tax increase

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WKAR file
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By Rob South, WKAR News

http://stream.publicbroadcasting.net/production/mp3/wkar/local-wkar-951575.mp3

LANSING, MI – A plan to raise the city of Lansing's millage rate 4 points won't be a property tax increase to most residents according to the Ingham County treasurer.

Lansing city councilmember Kathie Dunbar says she'll introduce a proposal next week to put the millage increase before voters.

Ingham County Treasurer Eric Schertzing says a four-mill increase in the city's tax rate wouldn't increase the taxes many property owners pay, because of sharp declines in property values.

"On average, they're going to have a five to seven mill decline because of that taxable value decline." He says, "A number of folks would still potentially have declines in what they're paying in taxes, even with the four mill increase."

Dunbar says the increase could generate $8.5-million to help offset a $15-million city budget shortfall. If the council approves the plan, the millage increase could go before voters in May.

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