There are several tools available online to see the values of homes that recently sold in your area for comparison to your own, such as trulia.com and zillow.com. Be sure to look for the “recently sold” sections of those web sites. Since property values have dropped approximately 30% in the area, it’s well worth it to challenge your taxable property values.

The Michigan Taxpayers Alliance also offers a DVD workshop that helps you with the process, for $10. You can check it out here.

State Representative Dave Hildenbrand offers a useful guide for appealing here.

Be aware, the deadline for filing appeals is February 12th!

Astrology services
Carpet cleaning
Consulting services
Investigation, guard and armored car services
Janitorial
Commercial landscaping services
Baby-shoe bronzing
Bail bonding
Balloon-o-grams
Coin-operated blood pressure testing
Check room services (coat checks)
Concierge services
Dating services
Social escort services
Fortune telling
House sitting
Coin-operated locker rental
Palm reading
Party planning
Porter services
Psychic services
Rest room operation services
Shoe shines
Singing telegrams
Wedding planning
Wedding chapel services (not churches)
Scenic transportation services
Skiing services
Tour operator services
Personal care (except hair care, including manicure, pedicure, etc.)
Security system services
Mini-warehouse and self-storage unit services
Business service center services (e.g., hire out payroll service)
Investment advice
Consumer-buying services
Discount-buying services
Genealogical investigation
Social introduction services
Numerology services
Pay telephone services
Personal fitness training
Personal shopping services
Coin-operated photographic machines
Phrenology services
Packaging and labeling
Specialized design services
Passenger and ground transport services
Courier and messenger services
Document preparation

Of course, the income tax also increased from 3.9% to 4.35%. What did we get in return? Two reforms, although they are important, they are not worth the tradeoff.

First, the Michigan Education Association (the teacher’s union) runs its own health care plan called MESSA. MESSA health care is, by some estimates, 20% more expensive than market-rate health care plans. Part of the problem is that, for those familiar with how health care works, MESSA premiums are the same for single individuals and families. Most health plans today cost employers more based on whether the employee is single, married, or married with children. With MESSA, it doesn’t matter, school districts get charged the same family rate, regardless of the employee’s status. This translates to much higher costs. The other factor increasing costs for school districts is the fact that MESSA is just repackaged Blue Cross coverage, with a premium attached simply because it is union-run. Basically, MESSA is a money-laundering scheme for the teacher’s union.

The bill that passed the legislature this weekend would require MESSA to publish its claims data, so competing health care plans could quote school districts their rate for the same plans. Previously, MESSA has vigorously opposed this because they will do anything to maintain their stranglehold on healthcare coverage for teachers in Michigan. In fact, the teachers union frequently threatens school boards with a strike if they attempt to bid out health care coverage, even though it is illegal for teachers to strike in Michigan. One MEA bumper sticker shows how militant they are – it reads “You’ll get my MESSA card from me when you pry it from my cold, dead hand.”

You understand why the union is so militant about protecting MESSA? Because it is a union cash cow. Now the legislature has finally stood up and made it easier for school districts to make sure that taxpayers get the best deal by allowing for competition in health coverage. Unfortunately, it only allows school districts to bid out care, it doesn’t require it. This means that local school boards will still have to deal with union threats and potential strikes if they want to do the right thing.

Second, reforms to the state teacher retirement system were enacted. This is a very long-term reform because it will only effect teachers who start working after July 1, 2008. However, it is an important reform because it will increase the time in service requirements for teachers to be able to get health and pension benefits in retirement. Currently, teachers can work as little as five years to get free health care for life. Unfortunately, the reform does not include a phase-out of the defined-benefit plan. Nearly all other state workers have been transitioned to a defined-contribution plan, much like a 401(k), which is sustainable and a bigger benefit to retirees. The current defined-benefit plan will continue to be unsustainable and extremely expensive. This issue will have to be dealt with again in the future, so this bill just put the pain off on future legislators.

And that’s it! We get those two watered-down reforms in exchange for more job-killing taxes. Only two local legislators voted in favor of the tax increases – Mike Sak and Robert Dean, both Representatives from Grand Rapids. We have heard rumors that the Michigan Taxpayers Alliance will target Robert Dean in their recall efforts. We wish them luck.

The good news is that the media is full of stories of ticked off Michiganders today. Lots of people are talking recalls, not just the MTA.

Michael Lafaive, of the Mackinac Center, put it best in an editorial in the Detroit News today:

“The state Legislature has kicked Michigan while it is down. Government is going to take another $1.48 billion out of the hands of residents and private job providers when they can least afford it — and do so with a new tax on services, too.

Michigan is already ranked 50th among the states in economic growth. It has the highest unemployment rate (7.4 percent), and our per capita income growth is well below the national average. By one measure, people are moving out of Michigan in near record numbers. And the bad news just got worse.

Lansing’s political class has pushed its service tax nose under Michigan’s economic tent. Next year, if new revenues do not flow into the treasury at anticipated rates, or if the cost of state government rises, it will be easy to add even more businesses to the 23 now on the state service tax hook.

We should fear for Michigan’s future. All the cheerleading by government officials won’t overcome the fact that it is more expensive to work, live and invest in the Great Lakes State.”

Recall 2007!!

It looks like we are on track for a state government shutdown at midnight Sunday evening. The governor went on TV last night to announce that all “essential” government services will continue. The question arises – then what isn’t essential? Can we do without the non-essential “services?”

The legislature continues to debate a tax increase. Do you want an 18% income tax increase from 3.9% to 4.6%? Do you think that will help our state’s economy? Do you think that serious government reforms should be part of the deal? Be sure to call your state senator and state rep today to let them know. They are set to reconvene at 1pm to continue the debate. This point in time is critical. We can either have long-term systemic government and budget reform, or just another fleece of the taxpayers.

Local Representatives and their contact information:
72nd District – Glenn Steil Jr., 517-373-0840, glennsteil@house.mi.gov
73rd District, Tom Pearce, 517-373-0218, tompearce@house.mi.gov
75th District, Robert Dean, 517-373-2668, robertdean@house.mi.gov
76th District, Sak Michael, 517-373-0822, speakerprotemsak@house.mi.gov
77th District, Kevin Green, 517-373-2277, kevingreen@house.mi.gov
86th District, Dave Hildenbrand, 517-373-0846, rephildenbrand@house.mi.gov
Not sure who your Representative is? Go Here.

Local Senators and their contact information:
28th District – Mark Jansen – (517) 373-0797
29th District – Bill Hardiman – (517) 373-1801
30th District – Wayne Kuipers – (517) 373-6920
Not sure who your Senator is? Go Here.

• Michigan Legislature web site – Find your legislators to contact him/her
• Michigan Taxpayers Alliance – Organization fighting tax increases with recall threats

The question always comes up. What could be cut so that taxes don’t have to be increased? Here is the list of $1.9 billion in potential cuts.

This is outstanding news. In case you’re not aware, a taxpayer advocacy organization called the Michigan Taxpayers Alliance has been threatening to mount recall campaigns against legislators who vote in favor of any tax increase. Leon Drolet, the former State Representative who is leading the campaign, has been much-maligned over his efforts, but we applaud him and his organization. In fact, he is teaming up with the local taxpayer advocacy group Kent County Families for Fiscal Responsibility, who helped to defeat the GRCC millage last month. KCFFR filed the preliminary campaign reporting statements yesterday to begin the effort to recall Senators Bill Hardiman and Mark Jansen, as well as Representatives Robert Dean, Kevin Green, and Dave Hildenbrand, if those individuals decide to for in favor of a tax increase, according to the KCFFR web site.

People are talking about a possible government shutdown in October if the budget battle isn’t resolved by that time. We can only hope for such a pleasant October surprise. The more gridlock in Lansing, the better off our state is. There are plenty more cuts that can be made, and it is our hope that those cuts see the light of day before job-killing tax increases are considered. Stay tuned for more Lansing fireworks.