Stockbridge Township’s property tax valuations rise 25 percent in one year; 62 percent over three years

Of eight townships in the Stockbridge School District, the taxable property values of seven rose 2 to 6 percent from 2016 to 2017. But one township’s valuations skyrocketed 25 percent to $280 million from $223 million during the one-year period. And that was just last year.

According to a report from the Ingham Intermediate School District, Stockbridge Township property tax valuations surged a whopping 62 percent during the 3-year period from 2014 to 2017. Taxable valuations are important because they are used to calculate property tax, and Stockbridge Township accounted for 90 percent of all-property increases within the school district.

To add to the mystery, Stockbridge Township accounted for 98 percent of non-homestead valuation increases for the year while, at the same time, it showed a slight -0.2096 percent drop in existing property values.

What’s going on?

The total taxable value of the Stockbridge School District rose from roughly $323 million in 2014, to $407 million in 2015, to $455 million in 2016, and to $518 million in 2017. No small change, considering that two years prior to 2014, the annual growth amounted to less than 1 percent, according to SSD Superintendent Karl Heidrich. Data Source: “Ingham Intermediate School District, Taxable Valuations. District: Stockbridge Community Schools.”

Answer: Enbridge Energy.

Karl Heidrich, Superintendent of Stockbridge Community Schools, said, “the district’s operating budget has seen increases as a result of higher taxable values in Stockbridge Township. The major contributor in the increase is related to Enbridge.”

In 2012, Enbridge wrapped up its initial $2 billion pipeline project and crossed through Stockbridge Township to its fuel storage tank. In the Lansing State Journal’s July 14, 2015 edition, reporter Alexander Alusheff pegged the taxable value of the section that runs through Stockbridge Township at $60 million.

According to Kris Lauckner, Stockbridge Township Treasurer, the upsurge in dollar amount valuations stems largely from increases in Enbridge’s personal property. Each year as the company has made physical improvements and added storage tanks—seven in all now—its taxable value has increased.

“Enbridge has reported a Personal Property whose taxable value has gone from 2008’s $806,340 to 2018’s $123,228,100,” Treasurer Lauckner explained. She added that several other Enbridge parcels have reported large, though less dramatic, increases.

“What this means is it has kept the School Debt millage that was voted for an increase in 2016 from the proposed 7-plus mills to 2.06 mills,” Lauckner said, because only the voter approved, specified total amount may be collected.

“Enbridge paid $708,954 of the $1,081,573 in School Debt,” she said, “or rather, 66 percent of the school debt millage collection in Stockbridge Township. That, otherwise, would come out of residents’ pockets.”

Lauckner wrote, “There are 2052 parcels in Stockbridge Township, of which 39 are Enbridge’s, but they pay 70 percent of the property taxes collected.” She went on to add, “The ISD received $1,619,610 in 2018 from Stockbridge Township compared to $651,097 in 2010.”

That 8-year growth rate works out to a head-slapping 149 percent increase.

Extrapolating from the LSJ article, the total taxable value of the Stockbridge School District rose from roughly $323 million in 2014, to $407 million in 2015, to $455 million in 2016, and to $518 million in 2017. No small change, considering that two years prior to 2014, the annual growth amounted to less than 1 percent, according to Heidrich.

Lara Hamsher, Enbridge Community Engagement Advisor, stated that Enbridge’s 2017 tax payment to Stockbridge Township amounted to nearly $9.6 million, plus $13.0 million to Ingham County.

“This is substantially higher on average than most townships in Michigan,” she wrote,“because of our terminal, the 6B upgrade and also because of the number of assets that traverse the township.”

Hamsher said the company employs 15 full-time, local workers and has no plans for additional enhancements to the Stockbridge Terminal or associated infrastructure at this time.

The school district draws taxable value from Ingham, Livingston, Washtenaw and Jackson counties, and valuations increased as follows:

Put graphically:

With the 2017 increase to roughly $280 million, Stockbridge Township now accounts for 54 percent of the property values in the entire school district.

With the 2017 increase to roughly $280 million, Stockbridge Township accounts for 54 percent of the property values in the entire school district.

“This makes sense,” Lauckner confirmed, “as Stockbridge Township is the only township wholly within Stockbridge School District—and the only township with Enbridge Tank Farm in it. This translates into $207,781 in property tax revenue for Stockbridge Township, of which Enbridge pays $140,198.”

Property tax is based on the taxable value of each parcel, and Stockbridge Township, with a population of 3,435 residents, is home to 2052 parcels, Lauckner said. The township levies .781 mills in property taxes, or $.781 for every $1,000 in taxable value. Stockbridge Community Schools levy 18 non-homestead mills for operating expenses and 4 mills to pay school debt, totaling 22 mills on every $1,000 in taxable value.

It should be noted, Lauckner pointed out, “School operating [expense] is not paid by principal residences nor agricultural properties—and amounts over the student count allotted amount must be turned over to the state of Michigan’s education fund.” She emphasized that the school only keeps the amount dictated by student count day and the multiplier per student as dictated by the legislature.

“This was the system put in place by the Headlee Amendment to level the playing fields for public schools,” she said.

The ISD report, entitled “Ingham Intermediate School District Taxable Valuations,” added the qualifier that its numbers were for Headlee calculation only, and different Non-Homestead numbers may be used for property tax bills. It stated that amounts will be diverted due to TIFA, DDA, and LDFA (Tax Increment Financing Authority, Downtown Development Authority, and Local Development Finance Authority, respectively).

To view the Ingham Intermediate School District report click here: 2017 Tax Certifications – STOCKBRIDGE