By DEBRA HAIGHT
BCR Correspondent
BENTON HARBOR, MI – One of the most contentious of the ballot proposals for next year is one that would eliminate the state property tax. A program about the current “AxMiTax” Initiative will be held later this month in Benton Harbor. It is sponsored by the Southwest Michigan Republican Political Action Committee and will be held at 6 p.m. at Lake Michigan Gardens, 2584 E. Napier Ave. in Benton Harbor.
The purpose of the meeting will be to inform and discuss the AxMiTax proposal including its objectives and projected effects on Michigan residents. The keynote address will be from Eric Lupher, President of the Citizens Research Council and people will have the chance to ask questions.
Lupher brings over three decades of expertise in public policy and fiscal analysis. The Citizens Research Council is a nonpartisan organization dedicated to thorough, objective research on public issues affecting Michigan. His career has focused on investigating complex tax systems, government finances, and strategies for sustainable public service delivery.
Among topics he will address are an outline of the fiscal realities of Michigan’s current property tax structure, alternative funding models for essential public services in the event of property tax repeal and the potential challenges and unintended consequences policymakers. He will present the case for and against eliminating property taxes.
Supporters of AxMiTax argue that property taxes are regressive, penalizing those who have invested in homeownership and often impacting the most vulnerable members of society. They assert that eliminating these taxes will protect senior citizens and people on fixed incomes from being taxed out of their homes.
They say that abolishing the property tax will encourage investment in property improvements and development and boost local economies as well as simplify the tax code, reduce administrative and compliance costs for both taxpayers and governments and enhance personal property rights by removing a form of government claim on private assets.
On the other hand, opponents of property tax elimination have major concerns. They say property taxes constitute the backbone of local school district funds and that loss would require the identification of alternative mechanisms.
They also note that cities and towns rely on property taxes for self-governance and service provision. Centralizing revenue streams could undermine local decisionmaking. There is also a concern that shifting the tax burden to sales or income taxes could disproportionately affect lower-income families.
They added that the administrative complexity of replacing property taxes with another system could create confusion and inefficiency. If successful, the ballot initiative has the potential to influence not just tax bills, but the structure of governance and public services in Michigan.
According to Bridge Michigan, other ballot initiatives being promoted include one instituting ranked choice voting for most state and federal elections, raising taxes on wealthy Michiganders to provide more funding for education, change minimum wage laws for tipped workers, and two proposals to require proof of citizenship and tighten election rules.
A similar “Ax the Tax” ballot proposal was attempted a few years ago but failed to gather enough signatures to get on the ballot. Ballot initiative wording must be approved by the State Board of Canvassers before signatures can be collected around the state and then submitted to the state for certification.
As for this year, there are few races or proposals before voters in August and November. The Aug. 5 ballot features a primary race for Benton Harbor City Commissioner and a millage renewal for the Buchanan District Library. The library millage proposal is for .30 mill for 10 years.
The November ballot will feature Benton Harbor City Commission and St. Joseph City Commission races and at least two millage proposals. Lake Michigan College will have a millage proposal on the ballot, as will the Eau Claire school district.
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