1. Does voting YES on Proposal 1 raise my property taxes?
No. Proposal 1 is not a new tax and does not increase your property tax rate. It continues the existing practice of capturing a portion of the tax growth generated exclusively within the downtown commercial district to pay for downtown public infrastructure.
2. Why should regional taxing partners contribute to downtown infrastructure?
Downtown Traverse City is the economic engine of our region, producing nearly 3% of the entire county’s tax base on just 0.05% of its land. Over 40% of TIF 97 funding comes from regional partners whose residents use downtown streets, bridges, parking, and parks every day. If Proposal 1 fails, that regional match disappears, leaving Traverse City’s 16,000 residents alone to pay 100% of the maintenance bill for these regional assets.
4. How does the new 70/30 compromise work?
Under the modernized plan, 30% of captured tax increment revenues are returned directly to the participating taxing jurisdictions (including the City and County general funds) to support general operations. In addition, newer voter-approved millages are exempt from capture.
3. What will the "Infrastructure First" Plan actually fund?
The amended plan focuses strictly on vital public assets: replacing 100-year-old underground water and sewer mains, upgrading stormwater systems to protect Grand Traverse Bay, maintaining bridges, and improving pedestrian safety.