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TABLE OF MAXIMUM INCREASES FOLLOWING
REMOVAL OF TAX CAPS
There are
provisions within the state's property tax laws that limit local property
tax burdens by tying them to household income, exempting certain repairs
and by limiting property taxes in other ways. Some of these techniques are
discussed on this web site as they relate to the 2002 tax proposal
questions in Saginaw.
One key to getting a property tax
break for homeowners is having annual property taxes that exceed three and
one half percent of household income. If your property taxes do not exceed
3.5% of household income or if you have a household income of more than
$82,650, then you probably won't qualify for a tax break. Those who don't
anticipate any tax break can estimate potential annual increases using the
following table.
Please note the caps apply to only
city of Saginaw operating millage rates. Actual experience has shown that
your total tax bill can go up even when the city’s tax rate goes down.
This has happened many times and is discussed in the
"caps, caps" page of this web site.
The table below includes an illustration
of a property with a taxable value of only $1,000. This was done so
viewers could easily convert costs if their individual property taxable
values do not match any provided in the table.
For example, if a property owner
had a home with a taxable value of $14,700 they could simply multiply the
increases shown in the table below at the $1,000 taxable value level by
14.7.Thus, the maximum increase projected if the Dollar Cap were to be
removed would be 14.7 x $2 or $29.40 per year.The total anticipated tax
increase if both caps were removed and city administrators levied the
maximum millage rate ($10) would be $64.68 per year (14.7 times $4.40).The
source for the table is the city of Saginaw Fact Finding Committee Report
of June 17, 2002.
| Market Value of a home |
Taxable Value |
Maximum Increase per Year if Dollar Cap Removed |
Maximum Increase per year if Dollar cap stays and 10
Mill Cap approved |
Maximum increase per year if both caps removed |
| $2,000 |
$1,000 |
$2 |
$0 |
$4 |
| $10,000 |
$5,000 |
$10 |
$0 |
$22 |
| $30,000 |
$15,000 |
$29 |
$0 |
$66 |
| $50,000 |
$25,000 |
$48 |
$0 |
$110 |
| $70,000 |
$35,000 |
$67 |
$0 |
$155 |
| $90,000 |
$45,000 |
$86 |
$0 |
$199 |
| $110,000 |
$55,000 |
$105 |
$0 |
$243 |
| $130,000 |
$65,000 |
$125 |
$0 |
$287 |
| $150,000 |
$75,000 |
$144 |
$0 |
$331 |
| $170,000 |
$85,000 |
$163 |
$0 |
$376 |
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