The "Headlee" Amendment

Article IX section 31 of the Constitution, added as part of the "Headlee" Tax Limitation Amendment of 1978, limits the tax revenue increase that results solely from increases in assessments. Should the value of property, excluding any increase due to new construction, increase faster than the rate of inflation, the excess growth requires a proportionate reduction in the maximum authorized millage rate. This mechanism keeps the property tax bill for the entire taxing jurisdiction growing at about the "real" rate of growth in the district.[13]