In November, Eaton County voters will decide on a proposed property tax measure known as the “tax limitation proposal.” It would allow county officials to reset tax millage rates and increase the amount collected by up to 3 mills.
The current rate in Eaton County has decreased to 5.2 mills since it was set in 1978 at 5.5 mills.
The current rate reduction is due in part to the voter approved proposal known as the Headlee Amendment of 1978 which allows property tax millage rates to decrease over time.
Currently, Eaton County is experiencing a budget shortfall of about $3 million dollars for fiscal year 2024-2025, with the deficit projected to grow to nearly $10 million the following year.
Board of Commissioners’ Chairman Jim Mott said the county has been dealing with a shortfall for more than a decade.
“For whatever reason, then county commissioners didn't want to go to the public and ask for more tax revenue, and none of us really do,” he said. “And at that time, we weren't at this point where we are right now.”
In the last three years Eaton county has been able to rely on $10 million federal pandemic relief funds to offset the deficit, but that money will run out by the end of the month.
“The county took that money rather than investing it in something because we were having shortfalls, took the money for the first three years,” said Eaton County Comptroller, Connie Sobie.
If the November proposal fails, officials say the Eaton Sherriff's Department would likely need to cut critical services like police road patrols.
“If you don't want to support this ballot proposal, then the question should be, don't call the police because it's going to be difficult for anyone to actually show up to do anything,” said Eaton County Prosecutor Doug Lloyd.
If the increase passes, county officials say it would cost the average taxpayer $216 a year starting in the summer of 2025.
