The Bridgman Public Schools district says for two years, they mistakenly took too much money from area taxpayers. Superintendent Shane Peters says the issue started in 2020 when voters approved an 8.88 millage rate for non-homestead properties like businesses and second homes. Peters says they later found out the school district wasn’t allowed to collect that much.
“We discovered that Proposal A prevents us from ever, ever, ever in the whole entire world levying anything higher than 8.376.”
Since 1994, Proposal A has capped the millage levels schools can collect. Since Bridgman is restricted to a maximum 8.376 and they collected the higher millage rate, Peters says the overcollection amounted to about $1.3 million dollars — most of that from Cook Nuclear properties owned by AEP and Indiana Michigan Power. Peters says the discrepancy was discovered when AEP officials raised it during the pending tax assessment appeal AEP has filed with the State of Michigan.
“We had two choices. One, we could either reduce the levy amount for this upcoming non-homestead tax (in 2024), or we could refund the money that we received. So we did cut some checks to reimburse the non-homestead people for the over-levy.”
As the largest taxpayer affected by the oversight, American Electric Power (AEP) said in an email statement they will accept the overage reimbursement.
“I&M is aware that the Bridgman Public Schools District is refunding property-tax payment overages to numerous property owners within the school district, including Indiana Michigan Power and its parent company, American Electric Power. I&M will accept the overage amount as determined by Bridgman Public Schools.”
In total, just over 1,000 properties were overtaxed in the district. Notifications were mailed to taxpayers in March and the checks have already been sent out by the school districts. Peters says $1.2 million is a significant amount but that the school will still come out with a budget surplus this year and staff will still receive their planned raises.
