What you need to know about the impact of consolidation on property taxes
by Jack Gallagher and Bill Kohls
In 2017, a group of unelected individuals circulated petitions to consolidate St. James and Peaine Townships into a single township, which would be known as Beaver Island Township. In January of 2018, the Charlevoix County board of commissions took action to place that proposal on the May 8, 2018 ballot.
The petitioners have provided little information, other than to suggest that a future board of a consolidated township may (or, may not) be able to save money and, perhaps, reduce taxes.
This discussion outline provides detailed insights to the impact of township consolidation on the taxes paid by property owners in St. James and Peaine Townships.
An inherent problem is that St. James Township levies considerably higher tax rates than Peaine Township.
A consolidated township will have a single tax rate that will be lower than the current levy in St. James and higher than the current levy in Peaine. Accordingly, the effect of the consolidation is a financial transfer from Peaine Township taxpayers to St. James Township taxpayers unless the consolidation results in cost savings of nearly $120,000 in each subsequent year.
This outline demonstrates that the financial benefits (if any) would not be shared equitably by the taxpayers in each of the townships; that property owners in Peaine Township could see an increase in property taxes of nearly 9%, and property owners in St. James Township could see a decrease in property taxes of more than 10%.
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Respectfully submitted by Jack Gallagher and William Kohls
Please note that the report refers only to the property taxes levied by St. James and Peaine Township as set forth in the ballot proposal. Other property taxes, such as the taxes levied by Charlevoix County, Beaver Island Community School and the Beaver Island District Library will not be affected by Township Consolidation.