The governments in Michigan that rely on property taxes levy a regular complaint that property taxes are limited. It is true that the state protects homeowners with a couple of property tax limitations. Even with these, property tax collections have been increasing above the rate of inflation for the past decade.

Property taxes raise the most revenue among all of the state and local taxes levied in Michigan. The latest annual report from the Michigan Tax Commission shows that property tax revenue increased from $17.5 billion in 2022 to $18.8 billion in 2023.

Property taxes are levied by state and local governments. Schools get the largest pieces, collecting 43.6% of the property tax. The state assessment, which is earmarked to education purposes, collects another 14.0%. Cities, villages and townships combine for 25.9% of the property tax and counties get 16.5% of the property tax.

Property taxes have been increasing faster than the rate of inflation since 2013. However, collections are still 10.4% below peak property tax collections in 2007.

Property taxes are based on property values, and the decline from peak levels is driven by the market for real estate. Property value assessments have still not recovered to 2007 levels, adjusted for inflation.

Tax rates, however, are up. The average property receives a tax levy of 42.11 mills, slightly below the 42.44 mill high set in 2020, and up from the 38.88 mills levied after the property tax cuts required in 1994’s Proposal A.

State and local governments have been collecting more from property taxes for the past decade. Rates are up, and collections are increasing faster than inflation.

The budget for Michigan’s executive office soared from $4.6 million to $8.9 million between fiscal year 2011-12 and fiscal year 2023-24, a 42% increase when adjusted for inflation.

Some of the increase came from the governor’s office taking over responsibilities from other state office, such as the Department of Technology, Management and Budget. In addition, the Office of Urban Initiatives became part of the governor’s staff in FY 2017-18, which included five full-time equivalent positions.

The executive office increased under former Gov. Rick Snyder, going from $4.6 million in FY 2010-11 to $6.9 million in FY 2018-19. It has increased to $8.9 million since, under Gov. Gretchen Whitmer.

The costs for the executive budget are largely driven by employment costs.

“There are more people in the executive office and the people are getting paid more,” said James Hohman, director of fiscal policy at the Mackinac Center.

The governor’s office did not respond to an email seeking comment.