Petoskey Council adopts 2026 millage rates; Headley rollback trims about $200,000 in city revenue

The Petoskey City Council voted to adopt the city's 2026 property tax millage resolution as presented, a routine step to set the summer tax bills. City Manager Andrew Horn and finance staff said the adopted millages reflect the 2026 budget decisions and comply with the state-mandated Headley rollback.

"We are capped at that inflationary rate," Horn said, explaining that the state's 2026 inflation factor was 2.7 percent and that the Headley rollback reduces the millage burden relative to the previous year. Horn told the council staff estimates show a revenue loss to the city of just over $200,000 as a result of the continued rollbacks.

Audrey in finance walked council members through a worked example that showed, for one taxpayer, a $19 net change after applying the rollback and local taxable-value changes. Council discussed differences between assessed value, taxable value and the process when a property transfers and becomes "uncapped." Staff said assessor parcel reviews (about 20% of parcels annually) and permit records inform updates.

Council moved and approved the millage resolution on a roll-call vote (5 yes). The resolution sets millage rates and authorizes appropriations to city funds consistent with the 2026 budget previously adopted by council.

Councilmembers also discussed potential public outreach options to explain property-tax mechanics to new homeowners, including encouraging realtors to disclose uncapping implications during home sales.

The millage resolution was adopted and will be applied to the 2026 tax rolls.