Traverse City Record-Eagle

Your Views

March 18, 2010

Letters to the Editor: 03/18/2010

Tax inequities

The March 5 editorial championing continued tax caps for family inheritances is great for those with long-term ownership of property. However, it overlooks tax inequities of residential and commercial property owners who have purchased properties in the past 10 years or so and are "uncapped." They bear the brunt of property taxes up to three times higher than comparable properties. That is the result of Proposal A, which needs to be addressed in Lansing if any real relief and equity is to happen.

Why? Because it stymies a healthy economy. Longtime locals cannot afford to sell as their taxes will skyrocket elsewhere, others who want to move to Traverse City don't because of our excessive taxes (unless wealthy); newer commercial property owners are hesitant to buy or build. In Wyoming the taxes were $750 per $100,000 of assessed value. Equal.

Also, Traverse City millages are exorbitant compared to surrounding townships. I support City Commissioner Mike Gillman's suggestion for a 1-mill decrease in Traverse City to signal they are serious about lean and more effective government.

If these issues resonate, please contact your state representatives regarding Proposal A or the city commissioners regarding a 1-mill tax reduction. No voice, no change.

Vicky Springer
Traverse City

Editor's note: Under proposal A, passed by voters in 1994, homes are valued at both their taxable value and assessed value. The taxable value -- on which a homeowner pays taxes -- is "capped" and can rise only by the rate of inflation or 5 percent, whichever is less. The assessed value can rise with the housing market and is usually higher. When a home is sold, the taxable value is "uncapped" and rises to the current assessed value. After the sale the taxable value is again "capped," and can only rise at the rate of inflation, until the home is sold.

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