The City has five millage rates and they are as follows:

General Operating millage – The City Charter provides for up to ten (10) mills to be used for general operating purposes. Tax revenues from this millage can be used for any purpose by the City.

Right-of-Way millage – The City Charter provides for up to five (5) mills to be used for any operating or capital-improvement cost within the street right-of-ways. Tax revenue from this millage can be used for any purpose within the street right-of-ways, which could include expenditures for; streets, sidewalks, trees, water, sewer and electric, providing the work is within the street right-of way.

Library Operating (City Council approved) – State law allows the City Council to approve up to one (1) mill for operating purposes. Tax revenue from this millage may only be used for library purposes.  Library Operating (Voter approved) – State law allows, with voter approval, up to an additional one (1) mill for library purposes. Tax revenue from this millage may only be used for library purposes.

Solid Waste – State law allows the City Council to approve up to two (2) mills for solid-waste purposes. Tax revenue from this millage can only be used for solid- waste purposes.

These five millages are all subject to reduction by State law provisions known as the Headlee Amendment which has reduced the maximum allowable amount down to the following:

    FUND CURRENT LEVIED RATE
    General Operating 7.6071
    Right-of-Way 3.9174
    Library 1.7989
    Solid Waste 0.4890

    Questions and/or concerns about excessive trash or debris at a residence or business can directed to the City by submitting a nuisance complaint form.

    All permanent signs require permits and where there is a special event occurring on a property, subject to ordinance restrictions.

    No. Under “Proposal A” the taxable value of a home is capped at 5% per year or the rate of inflation, whichever is less. When a home is sold, and the market value of that home is higher than the capped taxable value, the taxable value is re-set to current market rates. This often means the purchaser of an existing home pays more in property tax than the previous owner.

    However, under the 1978 Headlee Amendment to the Michigan Constitution, local municipalities must roll-back or lower overall property tax millage rates as a result of increased taxable values. This means that while an individual home purchaser may pay more in property taxes than a previous owner, the increase in taxable value from the sale of that home will lower the overall tax rate for all other residents in the community. The net result is that the City of Petoskey does not see an increase in property tax revenue from the sale and increased taxable value of a home.

    As a result, since voter approval of Proposal A, increases in the tax base of local units of government can happen in only two ways: through the rate of inflation or 5%, whichever is less, or with additions of values though new construction.

    The City of Petoskey's Nuisance Code requires that grass or weeds be no more than eight (8) inches in height.  If you believe there is a property in violation of this law, please click here and contact the City. 

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