As East Lansing City Manager, I frequently receive questions regarding the city's property tax rate. It is no wonder, because in today’s uncertain economic times every penny counts. Residents and prospective homebuyers often try to balance two considerations relating to owning or buying a home: the mortgage payment and property taxes. While these factors are clearly important, they are not the complete picture as many other specific costs may be overlooked, such as special assessments for sidewalks, street lights or drain improvements, utility rates and fees for services. These costs can vary significantly from one community to the next. When these costs are factored into the equation, the differences between communities are not always as great. For instance, a family earning the median income for the area and living in a $200,000 home will pay more for city services in Lansing than in East Lansing. This is because Lansing levies an income tax in addition to a property tax. A simple look at comparable property tax rates would miss this important fact.

Furthermore, even though East Lansing property tax rates are higher than some of the surrounding townships, most people are surprised to learn that, when charges for all municipal services and special assessments are factored in, it costs only slightly more per year to live in East Lansing.

Other variables owners and buyers should consider include the cost of recycling and yard waste collection – are those costs rolled into property taxes or do they present an additional expense? Are there special assessments for streets, lighting or county drains? What are the water and sewage fees? Is electricity provided by the Board of Water and Light or another provider with substantially higher rates – sometimes as much as 33 percent higher. Rural townships may also offer lower taxes, but the additional time and cost of commuting (as gasoline approaches $3.50 per gallon) changes the overall picture of cost of living. East Lansing is conveniently located within close proximity to employment centers as well as shopping and recreational activities. When looking at the entire picture, the financial differences are often not as they first appear.
When asked to explain East Lansing’s tax rate, I like to clarify that the tax millage rate has not increased, other than by a vote of the citizens, in more than 20 years. Also, those who pay local taxes know that these expenses are deductible on federal and state income taxes, while fees for similar services are not. I also point out to those with questions about our taxes that nearly two-thirds of the taxes we collect go to other government jurisdictions such as CATA, Inham County, East Lansing Public Schools, Lansing Community College and the State of Michigan.

Finally, I would like to acknowledge that the City of East Lansing is not attempting to provide the least amount of service for the lowest cost. Rather, we strive to provide value for our residents. Our residents have, for many years, demanded high levels of service, be it in the form of superior library programs, unequalled snow removal, unlimited free recycling, free leaf pickup, first rate recreations programs and facilities or neighborhood street repairs without special assessments. It is logical and understandable to consider property taxes as part of the equation in determining the cost of living in one place versus others, but many other variables are equally important. East Lansing homes continue to sell as fast or faster as homes in most neighboring jurisdictions and our homes appreciate in value at the same or higher rates. We are proud of the quality of life in East Lansing and the role our public services play in supporting it.