Michigan's tax structure traditionally relies on property taxes to fund schools, townships, villages, cities, counties, community colleges and libraries. In 1994 Michigan voters approved Proposal A changing the Michigan Constitution and granting the following tax changes:
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Added an extra 2% on sales and use taxes (from 4% to 6%), dedicating additional revenues to schools.
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Limited yearly increases in taxable value by the inflation rate (Consumer Price Index) or 5%. When property is sold or transferred adjust its taxable value to 50% of its market value.
- Exempted eligible homeowners from paying local school operating taxes on their homes.
Consumer Price Indexs
Year CPI
2011 1.7%
2010 -0.3%
2009 4.4%
2008 2.3%
2007 2.7% | 
