Last updated 2026-07-10
TL;DR
Michigan's Headlee Amendment (1978) forces local governments to roll back millage rates whenever total taxable value grows faster than inflation. Your levy stays revenue-neutral, not necessarily lower, but the cap stops automatic tax hikes driven by rising assessments alone. Headlee rollbacks happen on their own. You don't file anything to get one.
What is the Headlee Amendment and what does it actually do?
The Headlee Amendment is Article IX, Section 31 of the Michigan Constitution, approved by voters in November 1978. It does one thing at its core: it stops a local government from collecting more total property tax revenue than it collected last year, plus an adjustment for inflation, unless the people vote to allow it.[1]
That sounds simple. The mechanics trip up a lot of homeowners. The amendment does not cap your individual assessment. It caps the total levy a local unit (city, township, county, school district) can pull from all property combined. If the total taxable value of all property in your community grows faster than inflation, the millage rate has to roll back on its own to keep total collections under the constitutional limit.
The inflation measure is the lesser of 5% or the Consumer Price Index change for the prior year, as the amendment spells out.[1] So if your township's total taxable value jumps 8% but inflation ran 3.2%, the millage rate has to come down enough to close the gap.
Here's why this reaches your mailbox. Your tax bill is Taxable Value times Millage Rate. A Headlee rollback lowers the millage rate, which partly (sometimes fully) offsets a rising taxable value.
How does a Headlee rollback get calculated?
The State Tax Commission publishes the official rollback fraction formula every year.[2] The calculation runs like this:
Rollback Fraction = (Prior Year Total Taxable Value x Inflation Multiplier) / Current Year Total Taxable Value
If that fraction comes in below 1.0, the local government multiplies its current millage rate by the fraction to get the new maximum allowable rate. The answer is in mills (dollars per $1,000 of taxable value).
Run the numbers. Say a township levied 10 mills last year. Total taxable value across all parcels rose 7%, but the Headlee inflation multiplier was only 4%. The rollback fraction is roughly 1.04 / 1.07 = 0.972. The maximum allowable levy drops to 10 x 0.972 = 9.72 mills. Every owner in that township pays the lower rate on their own taxable value.
The State Tax Commission issues Bulletin 16 each spring with the official multipliers by county and local unit.[2] Your local assessor has to apply the correct fraction. They get no discretion to skip it.
| Step | What happens |
|---|---|
| 1 | STC calculates the Headlee multiplier (inflation-based) for the year |
| 2 | Local unit computes rollback fraction: (prior TV x multiplier) / current TV |
| 3 | If fraction < 1.0, millage rate is reduced before tax bills are set |
| 4 | New (reduced) millage appears on your summer or winter tax bill |
| 5 | Voters can restore the rolled-back mills by approving a separate millage vote |
How is a Headlee rollback different from the Proposal A cap on your assessment?
This is the single biggest source of confusion. Michigan runs two separate limits on property taxes, and they work on different things.[3]
Proposal A (1994) caps how fast your individual property's taxable value can rise each year. Under MCL 211.27a, your taxable value can only go up by the lesser of 5% or the inflation rate annually, no matter what the market does to your property's assessed value.[4] When you buy a home, taxable value resets to 50% of the purchase price (the assessed value), then the Proposal A cap starts over from there.
The Headlee Amendment is a community-wide levy limit. It looks at all taxable value in the jurisdiction in aggregate, not your parcel. Headlee controls the millage rate. Proposal A controls your individual taxable value. Two levers, two targets.
Both run at the same time. In a hot market, your taxable value might rise at the Proposal A cap (say 5%), but if average values community-wide rose faster than inflation, the millage rate rolls back under Headlee too. Your bill could land nearly flat even though assessments and rates both moved.
The reverse happens too. If a lot of new construction enters the tax base, total taxable value climbs hard, and the Headlee rollback can be steep even when individual homeowners feel no change in their own taxable values.
What happens to rolled-back mills, are they gone forever?
No. This is where the Headlee Amendment has real political teeth. Rolled-back mills come back only through a vote of the people.[1]
Under Article IX, Section 31, if a local government has had its millage rolled back and wants to levy those mills again, it has to go to voters in a millage restoration or override election. That's separate from asking for brand-new millage authority. Both a restoration of previously rolled-back mills and new authority pass on a simple majority.
In practice, local governments ask voters to restore Headlee-rolled-back mills all the time, school districts most of all. You'll see ballot language like "restore and increase the operating millage" or "override the Headlee rollback." If voters say yes, the government can climb back up to its originally authorized millage. If they say no, the rolled-back rate stays.
One practical consequence: over decades, a local unit that never went back to voters might levy well below its originally authorized millage. That can be genuinely good for taxpayers. It can also mean thinner local services, which is why the politics around Headlee millage elections get heated.
Does a Headlee rollback automatically lower your tax bill?
Not always, and this surprises most homeowners. Whether your bill drops, holds flat, or still climbs comes down to which of three forces is bigger.
One, your taxable value might be rising (up to the Proposal A cap, or up to full assessed value if you recently bought). Two, the Headlee rollback pulls the millage rate down. Three, any new voter-approved millage (bonds, special assessments, library, fire, road levies) can add mills that have nothing to do with Headlee.
A common strong-market year: your taxable value rises 5% (the Proposal A cap), but the local operating millage rolls back 2% under Headlee. Your bill still goes up roughly 3% on the operating mills. New voter-approved millage can push the total higher.
A flat or falling-value year looks different. Your taxable value might not budge, and if the community's total value grew from new construction, a Headlee rollback can cut your rate with no offsetting taxable-value increase. Your bill actually drops.
So the honest answer: a Headlee rollback limits your exposure to mill creep, but it does not guarantee a lower bill.
How do you find out if a Headlee rollback applied to your local millage?
Your summer and winter tax bill lists every millage levied, by taxing authority and by fund. Find the column marked "Millage Rate" next to each line item (city/township operating, county operating, library, school operating, school debt, and so on).[5]
To see if a rollback happened, put this year's millage rates next to last year's on the same bill. A rate that dropped even a fraction of a mill was probably subject to a Headlee rollback (or, less often, a voluntary reduction). Your local assessor or township treasurer can tell you the exact rollback fraction applied.
The State Tax Commission also publishes a spring report showing the Headlee multiplier and the resulting maximum allowable millage for every local unit in Michigan.[2] It's public record, free to read on the STC's website. Search for "State Tax Commission Bulletin 16" or the annual "L-4025" summary forms.
Think your local unit levied more than the Headlee-adjusted maximum? You can file a complaint with the State Tax Commission. The Michigan Supreme Court held in Bolt v. City of Lansing (1998) that citizens have standing to challenge Headlee violations, and the remedy is a refund of the excess taxes collected.[6]
What is a Headlee override vote and should you vote for or against one?
A Headlee override (or restoration) vote asks your community to let local government levy mills that were previously rolled back, or to set a higher ceiling that won't roll back going forward. These show up on local ballots, often in August or November.
Whether to back one is a values question, not a tax law question. The financial reality is plain: approving a Headlee override raises everyone's tax bill in that jurisdiction by the amount of the restored mills. Rejecting it keeps the rolled-back rate but squeezes the local budget.
For a homeowner with $150,000 in taxable value, one additional mill costs exactly $150 a year. That math is simple and worth doing before you vote. State law requires the ballot language to state the estimated annual increase for the owner of a home with a specific taxable value (often $100,000), so you get a concrete number to work from.[5]
Local school districts run Headlee override elections often, because their operating millage rolls back like any other unit's. If your district's operating millage has been rolled back a lot over the years and they're asking voters to restore it, the ballot shows exactly how many mills they want back and for how long.
How does Headlee interact with new construction and annexed property?
New construction is one of the trickier pieces of Headlee mechanics. When a brand-new building lands on the tax roll, its taxable value is genuinely new money, not rising prices on existing property.
The Headlee formula backs out new construction value before it computes the rollback fraction, so communities growing through development don't get punished by having growth counted as "inflation." The State Tax Commission's formula uses "prior year equivalent" calculations to split new-parcel value from value growth on existing parcels.[9]
In practice, fast-growing townships full of new home construction may see little or no Headlee rollback, because new-construction taxable value stays out of the fraction. Stable or declining communities with barely any new construction are more likely to see a real rollback when existing property values rise.
Annexation works the same way. When a parcel shifts from one taxing jurisdiction to another (say, a township into a city), that parcel's value comes out of the originating unit's base and into the receiving unit's base in a way that doesn't trigger fake rollbacks or excess collections for either side.
This matters if you live in a community seeing rapid annexation or big commercial development, because those forces decide whether your millage rate rolls back or holds flat.
Can you appeal a Headlee violation or an incorrect millage rate?
Yes. The venue is the State Tax Commission, not the local March Board of Review. If you think your local government levied millage past the Headlee limit, you or a group of taxpayers can file a complaint with the STC.[2]
The STC has authority under MCL 211.34 and the Michigan Constitution to investigate and order corrections, including refunds to all affected taxpayers when excess mills were levied.[4] Bolt v. City of Lansing established that courts can hear these challenges too, and the remedy usually includes return of all excess taxes collected plus interest.[6]
This differs from a standard assessment appeal, where you argue the value of your specific parcel. A Headlee complaint argues the rate itself was illegal for everyone in the jurisdiction. You don't need a lawyer to file one with the STC, though the process runs long and involves public hearings.
For a standard assessment dispute (your taxable value is wrong, your assessment tops 50% of market value, you're missing an exemption), the normal path is: local March Board of Review by the third Monday in April, then Michigan Tax Tribunal by July 31 of the same year for residential property.[7] Those deadlines are strict. If your taxable value is off because your assessed value is inflated, our DIY appeal resources walk through comparable evidence the same way Michigan assessors use it, even though that article covers Cook County.
What does a Headlee rollback look like in real numbers, a worked example
Here are realistic but illustrative numbers that follow how the STC formula works.[2]
Assume a Michigan township authorized to levy 10 mills for operating purposes.
- Prior year total taxable value: $500 million
- Inflation multiplier (Headlee multiplier): 1.032 (reflecting 3.2% CPI)
- Current year total taxable value: $540 million (8% growth, partly from new construction)
- After backing out $20 million in new construction value, adjusted current TV: $520 million
Rollback fraction = ($500M x 1.032) / $520M = $516M / $520M = 0.9923
Since 0.9923 is below 1.0, the millage rolls back to 10 x 0.9923 = 9.923 mills.
For a homeowner with $200,000 taxable value:
- Old bill (operating mills only): $200,000 / 1,000 x 10 = $2,000
- New bill (operating mills only): $200,000 / 1,000 x 9.923 = $1,984.60
Savings from the Headlee rollback alone: $15.40 a year on this one millage. That's not life-changing. But it compounds across every mill subject to rollback, and across years when rollbacks stack up.
Now add the Proposal A cap. If that homeowner's taxable value also rose from $190,000 to $200,000 (5.3% growth up to the cap), the millage savings get partly eaten. The net bill still lands higher than last year, but lower than it would have been without Headlee.
That's the honest frame for Headlee: a structural brake, not a refund.
How does this affect your property tax appeal strategy?
Understanding Headlee tells you which part of your tax bill is worth fighting. If you think your bill is too high, ask these questions in order.
First, is your assessed value at or below 50% of true market value? Michigan requires assessed value (State Equalized Value) to equal 50% of market value.[4] If it's above 50%, you likely have grounds for an assessment appeal at the March Board of Review. That's the fastest, most direct way to cut your bill.
Second, is your taxable value correct? Taxable value should never exceed assessed value. Check your Notice of Assessment (the form mailed each February) for both figures.[5] If taxable value is listed higher than SEV, that's an error you fix at the Board of Review.
Third, are you missing an exemption? The Principal Residence Exemption (PRE) strips 18 mills of school operating tax off your bill if you live in the home as your primary residence.[8] A missed PRE can cost hundreds of dollars a year. You can file a late PRE claim with the assessor.
The Headlee rollback is automatic. It asks nothing of you. Put your effort into the things that aren't automatic: your assessed value, your taxable value, and your exemptions. For homeowners building a full appeal file with comps and adjustment grids, TaxFightBack's DIY appeal kit covers the evidence the way Michigan Tax Tribunal rules require, without a contingency firm skimming 25% to 40% of your savings.
Curious how other Midwestern counties structure their levy limits and bills? Our Hennepin County property tax guide is a useful comparison for how levy caps work across state lines.
Key Michigan property tax deadlines you need to know
Miss a deadline in Michigan property tax law and you usually lose your appeal rights for that year. Here are the dates that matter.[7]
| Deadline | What it is |
|---|---|
| February (local assessor's discretion, often Feb 1) | Notices of Assessment mailed to all property owners |
| Second Monday in March | Board of Review opens (protest your assessed/taxable value here) |
| Third Monday in April | Final day to file with the local March Board of Review |
| May 31 | Deadline to appeal a Board of Review decision to the Michigan Tax Tribunal (small claims, residential) in many cases, confirm current MTT rules |
| July 31 | Standard MTT petition deadline for residential property for that tax year |
| June 1 | Principal Residence Exemption filing deadline for that year's summer taxes |
| November 1 | Late PRE filing deadline for that year's winter taxes |
Note: Michigan Tax Tribunal deadlines have gone through procedural changes. Always confirm at michigan.gov/taxtrib before you rely on a specific date.[7] The MTT runs different tracks (Small Claims Division versus Entire Tribunal) with different filing requirements.
The Headlee rollback has no homeowner deadline because it's an automatic rate adjustment applied before bills go out. But if you suspect your local unit broke the limit, file your STC complaint promptly after bills are issued each year.
Frequently asked questions
Does the Headlee Amendment lower my property taxes automatically?
It automatically lowers the millage rate applied to your taxable value when your community's total taxable value grows faster than inflation. Whether your actual bill drops depends on how much your individual taxable value rose under the Proposal A cap and whether any new voter-approved millage got added. The rollback limits mill creep but doesn't guarantee a lower bill.
What is the difference between Headlee rollback and Proposal A?
Proposal A (1994) caps how fast your individual property's taxable value can grow each year, the lesser of 5% or inflation. The Headlee Amendment (1978) caps the total tax levy a local government can collect from all property combined, forcing a millage rate reduction when aggregate taxable value grows faster than inflation. They operate on different things at the same time.
Who calculates the Headlee rollback fraction in Michigan?
The Michigan State Tax Commission calculates and publishes the official annual Headlee multiplier (inflation adjustment) in Bulletin 16 each spring. Local assessors then apply the rollback fraction formula using their own taxable value totals. The fraction is required by the Michigan Constitution and isn't optional. Local governments cannot choose to skip it.
Can a local government get back the mills it lost to a Headlee rollback?
Yes, but only through a voter-approved millage restoration election. The local unit puts a question on the ballot asking voters to restore rolled-back mills. A simple majority approves it. If voters say no, the reduced millage rate stays. This is why school districts and townships run millage override elections, sometimes repeatedly.
What is a Headlee violation and how do I report one?
A Headlee violation happens when a local government levies more mills than the constitutionally allowed maximum after the rollback fraction is applied. You report it by filing a complaint with the Michigan State Tax Commission. The STC investigates and can order refunds to all affected taxpayers. The Michigan Supreme Court's Bolt v. City of Lansing decision confirmed this remedy is available.
Does new construction affect the Headlee rollback calculation?
Yes, in a way that protects growing communities. The rollback formula backs out new construction value from the current year's total taxable value before computing the fraction. That means genuine growth from new homes and buildings doesn't trigger a rollback. Only value growth on existing parcels above inflation forces the millage rate down.
How do I read my Michigan tax bill to see if a Headlee rollback applied?
Your summer or winter tax bill lists every millage by taxing authority and rate. Compare the millage rate on each line to last year's bill for the same line. If any rate dropped, a Headlee rollback (or voluntary reduction) likely occurred. Your local assessor or township treasurer can confirm the exact rollback fraction applied to each levy that year.
Is the Headlee Amendment the same in every Michigan county?
The constitutional requirement is statewide and uniform. It applies to every local taxing unit in Michigan. But the actual rollback fraction differs by jurisdiction, because each community's total taxable value growth rate and local levy structure are different. A fast-growing township may see almost no rollback, while a mature suburb with rising existing-home values may see larger millage reductions.
What is the Principal Residence Exemption and how does it relate to Headlee?
The Principal Residence Exemption (PRE) is a separate tax break under MCL 211.7cc that removes 18 mills of school operating tax from your bill if you own and occupy the home as your primary residence. It has nothing to do with Headlee. But it's often the most valuable single item to check on your bill. A missed PRE costs several hundred dollars a year and can be corrected retroactively for up to three prior years.
What happens to Headlee rollbacks when I buy a new home in Michigan?
Buying a home uncaps your taxable value. It resets to 50% of the purchase price (assessed value) in the year following the sale. After that, the Proposal A annual cap starts over from the new base. The Headlee rollback still applies to the community-wide millage rate whether you just bought or have owned for decades. Your individual reset doesn't affect the community's rollback fraction.
Do commercial and industrial properties follow the same Headlee rules as residential?
Yes. The Headlee Amendment applies to all taxable property in a jurisdiction, well beyond residential. Commercial and industrial property value growth counts the same way in the rollback calculation. Where they differ is assessment methodology and sometimes applicable exemptions, but the millage rate rolled back under Headlee applies to every property class equally.
How far back can I appeal a wrong assessment in Michigan?
For assessed or taxable value disputes, you appeal at the March Board of Review in the year the assessment is made. You typically can't go back and appeal prior years. For a missed Principal Residence Exemption, you can file a retroactive claim for up to three prior years. For a Headlee violation, file STC complaints promptly after the tax bills in question are issued.
Where can I find my local Headlee rollback fraction?
The Michigan State Tax Commission publishes the annual Bulletin 16 report at michigan.gov/statetaxcommission. It lists the Headlee multiplier and maximum allowable millage for every local unit. Your local assessor's office also has these figures and must provide them on request. The L-4025 certification forms are the official local records of what was levied versus the Headlee maximum.
Sources
- Michigan Constitution, Article IX, Section 31 (Headlee Amendment): The Headlee Amendment requires local governments to roll back millage rates when total taxable value grows faster than the CPI, and limits the inflation adjustment to the lesser of 5% or CPI; restored mills require voter approval.
- Michigan Department of Treasury, State Tax Commission: The State Tax Commission publishes annual Bulletin 16 with official Headlee multipliers and maximum allowable millage for every local unit; L-4025 forms certify actual levies.
- Michigan Department of Treasury, Property Tax overview: Michigan operates two simultaneous limits on property taxes: the Headlee Amendment (community-wide levy cap) and Proposal A (individual taxable value growth cap).
- Michigan Compiled Laws, MCL 211.27a (Proposal A taxable value cap) and MCL 211.34: MCL 211.27a limits annual taxable value growth to the lesser of 5% or inflation; MCL 211.34 grants the STC authority to investigate and correct excess levies.
- Michigan Department of Treasury, Property Tax Estimator and bill guidance: The Notice of Assessment (mailed February) shows both State Equalized Value and taxable value; summer and winter tax bills itemize each millage rate by taxing authority.
- Bolt v. City of Lansing, 459 Mich. 152 (1998), Michigan Supreme Court: The Michigan Supreme Court held in Bolt v. City of Lansing that citizens have standing to challenge Headlee violations and that excess taxes collected must be refunded with interest.
- Michigan Tax Tribunal, Filing Deadlines and Procedures: The standard Michigan Tax Tribunal petition deadline for residential property is July 31 of the assessment year; the March Board of Review closes on the third Monday in April.
- Michigan Compiled Laws, MCL 211.7cc, Principal Residence Exemption: The Principal Residence Exemption removes 18 mills of school operating tax from the bill of an owner-occupant who claims it; late claims can be filed retroactively for up to three prior years.
- Michigan State Tax Commission, Assessor Certification and Training materials: New construction value is backed out of the Headlee rollback fraction calculation so that genuine growth from new parcels does not trigger a mandatory millage reduction on existing property.
- Michigan Legislature, Proposal A of 1994, constitutional amendment and implementing statutes: Proposal A (approved March 1994) reset all taxable values to assessed value and applied the Proposal A cap going forward; taxable value resets to 50% of purchase price upon sale.