(The Center Square) – A new Michigan policy could cost Oakland and Macomb county households thousands in higher property taxes.
The Michigan House recently approved House Bill 4177, seeking to subsidize two nonprofit museums run through the Wright and Detroit Historical Societies. Because they likely could not stay open through admission fees and donations alone, Oakland and Macomb County residents would pay up to $200,000 in property taxes over the next 10 years.
“This bill allows for an annual tax starting in 2025 as high as $15.5 million for Oakland taxpayers and $7.3 million for Macomb taxpayers,” State Rep. Tom Kuhn, R-Troy said. “Over 10 years, the plan could cost taxpayers from our two counties almost $250 million.”
Kuhn attempted to pass amendments which would have required the two nonprofits to be subjected to the state’s Open Meetings Act, Freedom of Information Act and annual public audits. Kuhn argued transparency is especially necessary following a recent scandal with the Detroit Riverfront Conservancy, which misappropriated more than $40 million.
“Without transparency and oversight, taxpayers have no assurance that their tax dollars are actually going to provide these nonprofits’ services instead of high salaries, no-bid contracts, special deals to friends of the board, and other irregularities which we have seen with similar nonprofits,” Kuhn said.
Many, such as Rep. Tyrone Carter, D-Detroit, say the museums are vital toward preserving the region’s history, particularly for underserved communities. The Detroit Historical Museum and Charles H. Wright Museum of African American History would receive similar funding as what the Detroit Zoo and Detroit Institute of Arts currently receive.
“We’ve heard testimony from leadership of both organizations in committee about the underfunding and large amounts of deferred maintenance for their museums,” Carter said. “These cultural resources in our community deserve sustainable funding support. With this legislation, residents can enjoy the perks and access to the museums.”
The bill passed the House along party lines 56-53, with all Republicans voting against the bill, and all local Democrats voting in favor.
It now moves to the Senate Committee on Finance, Insurance and Consumer Protection
