MML Review Magazine Winter 2026

This is where it gets confusing. The popped-up values are being included in the calculation of the MRF. This is significant because it artificially inflates overall property tax growth and can trigger a Headlee rollback. This effectively negates the increased value when the property resets on sale by overstating the growth related to market and inflation as provided for by Headlee. The fix is simple and straightforward. We should not include the popped-up values in the calculation. They were not values or concepts that existed when Headlee was implemented, and it distorts the formula. If you are puzzled, you are not alone. At its core, Headlee sought to limit tax growth through millage, and Proposal A sought to accomplish the same thing through property values. Individually they work but the implementation trying to combine them missed the mark. As we head into 2026, property tax reform is a topic that will require a lot of attention from the League and our members. In addition to the ideas we outlined, we can expect other concepts to be part of the conversation. We encourage everyone to stay engaged as property taxes are the single biggest revenue source for local government, and any changes need to ensure we have the resources to build and maintain great communities. It is important to note that none of the changes affect the inflationary limits provided for in the constitution. They are both common sense fixes that don’t change anyone’s taxes today. It merely allows both upward and downward adjustment while still limiting growth to inflation. Fixing these issues remains high on the League’s priority list, and we will continue to work closely with the legislature to make it a reality.

Anthony Minghine is the deputy executive director of external strategies for the League. You may contact Tony at 734-669-6360 or aminghine@mml.org.

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| Winter 2026 | 13 | Spring 2025 | 11