Governments brace for possible property tax loss
DETROIT – Governments and schools across Michigan are bracing for the possible loss of millions of dollars in tax revenue as General Motors Co. and Chrysler Group LLC argue that they should pay less in property taxes.
GM and Chrysler say their property taxes are inflated by more than 50 percent because local communities overestimate the value of their plants and buildings. If the automakers prevail before the Michigan Tax Tribunal, some of the hardest hit communities would be those in metro Detroit, where GM and Chrysler are the biggest
But the Detroit Free Press reports it would also affect school districts, community colleges and libraries. Community leaders say they could have to lay off police and firefighters or cut services.