LANSING – In a move to prevent more residents from losing their homes to foreclosure, State Representative Kate Ebli (D-Monroe) yesterday approved a plan that will prevent homeowners' property taxes from going up when the value of their home falls.
"Michigan residents are spending more for everything, from a gallon of gas to a gallon of milk," Ebli said. "It makes absolutely no sense that homeowners have to pay higher property taxes as the prices of their homes continue to fall. Our residents are already stretching their money as far as it can go, and they deserve this protection."
Under current state law a property's taxable value can increase by either 5 percent or the rate of inflation, whichever is less, as long as it is less than the property's assessed value. If the assessed value falls below the taxable value cap, then the home's taxable value is equal to its assessed value. The plan passed today by the Michigan House would prevent a homeowner from having to pay more in taxes if their home value declines. Instead, the homeowner would pay the same amount of taxes as the previous year, ending the bad practice that is eroding homeowners' equity.
"This plan will bring much-needed relief to homeowners in Monroe County," Ebli said. "The cycle of lower values and higher taxes is hurting the ability of our residents to keep their homes. As a lawmaker, it's my job to protect our working families, and passing this plan will help protect their most important investment – their home."