A mill is $1 per $1,000 of taxable property value. If your house has a taxable value of $50,000 and a millage of 1 mill is levied, you would pay about $50 per year.
But the rates approved by voters aren’t permanent.
The Headlee Amendment to the Michigan Constitution limits how much localities’ property tax revenue can grow each year, capping the increase at 5% or the rate of inflation, whichever is lower. If the value of existing properties grows faster than the rate of inflation, local governments are required to reduce millages from their originally approved rates.
Under the amendment, schools are limited to levying property taxes on non-homestead properties, such as businesses and vacation homes, at a maximum rate of 18 mills. Some districts request higher millages to provide a buffer against future rollbacks, ensuring they continue to receive the full statutory rate of 18 mills even as the approved rate is chipped away over time.
