Mackinac County Property Taxes Increase 8.58%
By Karen Gould

County residents will see an 8.58% increase in county operational millage for 2007. Following a truth in taxation hearing, Mackinac County commissioners approved the increase Thursday, June 14.

The county will levy the maximum allowable 4.4631 mills. While last August voters approved 4.5 mills, the 0.0369 mill difference is the result of the Headley Amendment, which limits property tax increases. The amendment does not allow property taxes to increase faster than the rate of inflation.

In December, 1.1818 mills will be levied for the hospital.

To the taxpayer whose property has a $40,000 taxable value, for example, the property tax increase will be $14.11, Equalization Director James Fenlon told The St. Ignace News Monday, June 18.

The increase, say commissioners, is due in part to the lowering of taxes last year.

In the past, commissioners gave the money to the district health department to support substance abuse programs. Commissioners stopped support of the program last year after several months of discussions involving the accountability of Luce-Mackinac-Alger-Schoolcraft District Health Department (LMAS) operations. Commissioners questioned the use of the funds in Mackinac County and decided to keep the founds for the county and give a tax reduction to residents. Commissioners then used state funds to supplement the county coffers. At that time, commissioners agreed to keep $137,135 from the TriCounty Convention Facilities Tax and the 4% Statewide Liquor Tax. The state's 83 counties receive a distribution from the fund and last year, Mackinac County's share totaled $137,135.

The additional $137,135 in revenue allowed commissioners to lower taxes and the county levied 4.1104 mills, which amounted to an average savings of $8.17 to taxpayers.

This year's tax hike also is due to the standard taxable value 3.7% inflation rate and new construction. The increase also accounts for a renewal of a maximum of 4.5 mills voted on by county residents in August 2006.

The July tax bill also will include 4.4631 allocated operating mills, the 6.0 mill state education tax, and in some cases local school taxes. The December tax bill will assess the 1.1818 hospital voted mills and also may include some local school taxes and township taxes.