What significant amendment limited taxes in Michigan's Constitution?

The Headlee Tax Limitation Amendment is significant because it was specifically designed to limit the amount of tax revenue that state and local governments in Michigan could collect. Ratified in 1978, this amendment introduced various restrictions, one of which included a cap on property tax increases. It required that any increase in state taxes above a certain threshold must be approved by voters.

Additionally, the Headlee Amendment mandated that property tax assessments be based on the property’s value as of December 31, 1976, limiting the grounds for the valuation of property for tax purposes. This helped ensure that taxpayers would not face excessive tax burdens as property values fluctuate.

The existence of this amendment is significant in understanding Michigan's approach to taxation and the protection it offers to property owners, making it a landmark component of the state’s constitutional framework regarding tax policy.