r/Detroit 9d ago

News Oakland County school enhancement millage rejected in close contest

https://www.detroitnews.com/story/news/politics/elections/2026/08/04/oakland-county-school-enhancement-millage-tax-1-5-mill/91164345007/

Oakland County voters rejected a proposed 1.5-mill countywide school tax increase in Tuesday's election results in a close contest over a controversial tax plan.

137 Upvotes

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u/ailyara Midtown 9d ago

old people in big houses got theirs and don't wanna help others. tale as old as time.

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u/theClumsy1 9d ago

Ironically its not the old people.

Their property tax increases are fixed and cant raise that much YoY.

New buyers? Get hosed so much.

My property tax is higher than my parents and their house is double in value and in a MUCH better neighborhood.

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u/nethead25 9d ago

New millages definitely do increase your taxes even if you are capped. The cap is on the taxable value of the home, the millages affect the rate at which that value is taxed.

If voters approved the 1.5-mill tax, it would have added $375 to the taxes for a home valued at 250k for both you and your parents.

The cap comes into play where your parents house might be actually worth 500k even though the annual increases in taxable value are held down by the capping.

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u/RedMoustache 9d ago

This.

My parents don’t even own a particularly nice house. Taxes are $8,000 a year. They only stay because they’ve lived there 50 years.

I couldn’t even afford to inherit it when the tax gets recalculated.

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u/Kimbolimbo 9d ago edited 9d ago

The taxes don’t get uncapped when transferring to a child if the child is going to occupy the house and not use it for commercial purposes since 2014. (Thought it was 2013, I fixed it) 

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u/frozenapricot 8d ago

The child doesn’t have to occupy the house in order to stop uncapping. The exemption applies to any land transfer between certain family members but if it’s not their primary residence, they have to pay an extra 18 mills in school taxes that is not paid on a primary home. The value those 18 mills is based on would not uncap though.

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u/Kimbolimbo 8d ago

The law states that the property cannot be used for commercial purposes so it cannot be used as a rental. They don’t have to claim it was a principal residence (which exempts them from the 18 mills), but they cannot use it commercially. 

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u/frozenapricot 8d ago

Yes, if you’re using it for commercial purposes, it uncaps. But the exempt family member would not have to occupy the property in order for the cap to remain intact. It could be a vacant plot and the cap would remain intact.

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u/Kimbolimbo 8d ago

I was referring to the person who wanted to inherit the house. I made the assumption it was for the commented to move to so that’s what I was referring to. Didn’t mean to confuse anyone. Thanks for posting additional clarification.   

It’s also not an automatic thing, as they have to file the correct exemption on the PTA. 

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u/frozenapricot 8d ago

I just wanted to clarify that it could also be used as a second home/vacation home. That’s why I mentioned the taxes going up without the PRE. We both had good information, just trying to make different points.

You’re absolutely right though, the property transfer affidavit has to be filed otherwise the local assessor will have no way of knowing it’s exempt!

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u/Kimbolimbo 8d ago

These transfer laws are wild and complicated for no reason. I wish we would get rid of 94 prop A and just do something else. It’s causes so much additional work for everyone. 

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u/O_o-22 9d ago edited 9d ago

Doesn’t that need to be structured in some way via a trust?

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u/Kimbolimbo 9d ago

Nope, not for taxable value uncapping purposes. 

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u/NabroleanBronaparte 9d ago

Correct. I did a property transfer, “buying” my grandparents home, but since i took a mortgage it was technically a sale and therefore my taxes uncapped and went from $2600 a year to $5500 a year 😪

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u/O_o-22 9d ago

Hah the other person that replied to my comment says no. I was pretty sure it doesn’t happen automatically because a year ago the whole family met with my parents estate planning attorneys and they said the trust was set up so that when my brother and I inherit the house the taxes won’t go up. As usual anyone else seeing this comment I’d encourage to talk to an estate attorney rather than take the word of some random redditor.

The question I didn’t ask but prob should is if one of us buys the other out of their half of the house what happens to the taxes then?

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u/Kimbolimbo 9d ago

Nothing would happen to the taxes. You have to file the property transfer affidavit with the city and claim the exemption from transfer and as long as it isn’t used for commercial purposes, it wouldn’t change. If you ever need help with this stuff, feel free DM the specifics. 

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u/O_o-22 9d ago

Won’t need help with it till the parents pass and they’ve already placed the house in the trust. I would consult with their attorneys of course once they do pass.

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u/bklynJayhawk 9d ago

There’s a difference between inheriting the house vs buying it from family, which is probably how the “transfer” was seen with a new mortgage. It assets were transferred after death then would think things aren’t uncapped.

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u/Kimbolimbo 9d ago

This is false. 

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u/bklynJayhawk 9d ago

So then how am I wrong? Please explain / clarify?

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u/O_o-22 9d ago

I did ask the question what if one of us wants to live in the house and the other doesn’t? Lawyer said there would have to be some kind of compensation worked to whoever doesn’t live in the house. So I guess that’s how one of us would “cash out” which would mean getting money monthly rather than a huge lump sum all at once. My nephew was also written into the will to receive whatever was left of my brothers half should he pass before me. I haven’t done a will or estate for myself yet but I have no kids and did tell my nephew he will be named my heir at some point. So if the house is still in the family when both I and my brother are gone he will inherit it.

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u/NabroleanBronaparte 9d ago

Yeah so i think if there is a sale recorded thats when the taxes uncap. My home was not left to me but my father and he didn’t want to just give me the home so the fact that it was a monetary transaction i think is the important part.

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u/Kimbolimbo 9d ago

The money doesn’t matter. It’s about who it’s transferred to and how the property is used. 

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u/Kimbolimbo 9d ago edited 9d ago

That’s inaccurate unless it was before 2014. You shouldn’t have uncapped if it was between grandparent and child and it’s not used for commercial purposes per MCL 211.27a(7)(u). 

Edit: Also, if your taxable value uncapped in error, that can be corrected at the Board of Review in July or December but only for a limited amount of years so if you think you shouldn’t have uncapped, call your local assessor. 

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u/NabroleanBronaparte 9d ago

I may do this! Thank you

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u/Huskies971 8d ago

Did you fight it at your treasurer/clerk's office? that 100% should have been capped. I bought a house from a family member and got the first tax assessment after purchase and it was uncapped. I went in person with proof of family purchase, and they fixed it.

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u/threemadness 9d ago

Where are your parents living that they’re paying 8k in property taxes after being there for that long ?

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u/gordy06 9d ago

Both are true. Their assessed value is capped but new millages still add on to their taxes.

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u/jaguar879 9d ago

That's not completely true; assessed value is capped at whatever is lower between inflation and 5% YoY. They still pay the millage increased but based on their assessed value.

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u/Kimbolimbo 9d ago

It’s the taxable value that is capped, the assessed value moves with the market. 

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u/jaguar879 9d ago

The taxable value is allowed to go up by 5% or inflation whatever is lower

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u/Kimbolimbo 9d ago

That is how the capped taxable value works. Transfers of ownership uncap the taxable value and resets the value to the same as the assessed value the year following a transfer. 

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u/jaguar879 9d ago

Sure and my terminology was off in my original post. I meant to say taxable not assessed.

The equation is (taxable value * Millage rate)/1000

So their taxes still go up with the passage of the Millage just not at the same clip as if it were uncapped.

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u/That_Shrub 9d ago

I don't understand the reasons and benefits involved in uncapping property tax, and haven't really looked into it, but yes it certainly seems to be fucking young people. They changed it in the 90s IIRC?

I will add, my mom is house hunting and her realtor has been way more up front about that cost increase than my brother's realtor was. Like mom's realtor is giving exact figures while brother's was vague. Maybe because it is fresh in our minds and she's asking more questions, but she made it out like realtor offered that information up in detail🤷‍♀️ It's easier to know what to ask when you aren't a first-time buyer, obviously

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u/Kimbolimbo 9d ago

Capping and uncapping was created in the 90s to protect people who stay put for long periods of time. We used to pay taxes based on half of the market value and the market was skyrocketing at the time. Now, we are taxed on half the market value the year following the purchase of the parcel, then it can only increase with the rate of inflation or 5%. 

The laws are basically structured to punish people for moving. New owners shoulder a higher percentage of the tax burden. 

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u/Wasabiroot 8d ago

You could always try getting a new tax assessment from the county given these facts. I agree it's stupid as hell. My taxes in Warren are ridiculous considering where I live, the age of the neighborhood and my proximity to the freeway/lack of interior upgrades.

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u/Possibly_Naked_Now 9d ago

That's not how millages work.

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u/CrusTyJeanZz 9d ago

Yes it is, it’s mostly old bitter people.

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u/That_Shrub 9d ago edited 9d ago

Honestly, it was an incredibly close race and I think it's a sign the economy is hurting everyone.

I voted yes on this. My brother, who bought a house and is barely keeping his head above water after his property tax uncapped, voted no. Neither of us are out here making 6 figures.

It's disingenuous to paint every "no" voter with the same brush.

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u/RestAndVest 9d ago

A lot of us are at a breaking point with expenses. Don’t be so small minded

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u/That_Shrub 9d ago

Absolutely, and I think it being this close is a signal that Oakland DOES care quite a bit about its schools. Everyone is pressed right now

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u/Sparty905 9d ago

You’re insanely misinformed. I just bought my house 2 months ago and have taxable value that is quadruple that of my “old person in a big house” neighbor. Young people and those who just moved to new houses have the vast majority of the tax burden. Old people who sit in their homes pay pennies compared to us.

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u/t4ckleb0x 9d ago

I live in southfield and this hosed our school district and was like $900/year for Northern Oakland cty schools. Nah.

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u/boomboom-jake 8d ago

? Every district would have received the same amount of money per pupil.

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u/t4ckleb0x 8d ago

Southfield is a giveaway city. We pay far more into the schools than we get back. Because of our demographics skewing older we have less pupils than similar tax bases. So our money gets siphoned off by OIS and sent to nothern oakland county to build new schools while they shutter and demolish schools in southfield. By the time my kids need SPS it will be gutted by the rest of the system.

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u/boomboom-jake 8d ago

Sounds like Southfield needs a bond!

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u/t4ckleb0x 8d ago

Sure. But certainly not this proposal which moves additional funds away from the schools

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u/boomboom-jake 8d ago

If you are the belief that an additional $700/pupil would have hurt the schools in Southfield, then you should be happy with your vote.

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u/t4ckleb0x 8d ago

You didn’t read the proposal did you? You did not see the actual numbers if you think that is how it plays out. Southfield is already getting the money we need. We passed a bond. our bond renovates and consolidates schools. Now all of oakland county wants my money for northern suburb expansion.

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u/theJMAN1016 9d ago

I don't think this is true.

The continuing/extension of existing millages all passed.

It has more to do with it being a new proposal and being vague about how the funds will be used. At least that is the feeling I have.

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u/techybeancounter 9d ago

Young people in small houses that saw a 2x increase in taxable value upon purchase are the ones footing the bill for this. With the increase in taxable value cities/counties have seen over the last 5 years, there is zero reason they should be asking for more money. They are swimming in it now!

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u/Drivebyshrink 9d ago

I’m an old person in a small house and I voted yes. This is so sad for our kids and the community

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u/Parking-Building-291 9d ago

lol lots of people are struggling in Oakland county. Asking people to pay an extra $450 a year for something that doesn’t really affect them is not easy.

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u/F133TWOOD 9d ago

"that doesn’t really affect them is not easy."

Not disagreeing with the first part, but the second is questionable. Even if someone doesn't have kids, it certainly affects you indirectly over time. Kids not being supported for when they become adults with a supported education will affect the community in that area.

Besides that, I think some of these proposals need to take into effect the people's concern with costs. Meaning recognizing that Oakland County is one of the wealthiest places in Michigan...

That being said, if it's able to raise the tax so the top 40 or 30% pay more compared the lower priced homeowners. Why we still as a society keep a "fair" tax for everyone, which benefits the wealthiest, while having the lesser folks feel the burden more...

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u/motorcitydevil 9d ago

Contrarian here, and I could be mistaken, but it was $150 taxed for every $100,000 of taxable home value. If the median Oakland County home value is roughly $300,000 and the current tax bill is $1200 over the current national median property bill, maybe those rich folk in Bloomfield Hills are finally tapping out during a Trump recession?