how Michigan property taxes work - Taxable value - part 7So many people are confused on how Michigan property taxes work, the second key is to understand the definition of taxable value. Taxable value is the most important number on your Metro Detroit property tax statement. This is the number that determines what you pay on your Michigan property taxes. When you buy a house the next May the taxable value resets to equal the state equalized value (SEV). So let's say you buy a Canton home in Sept 2009. The current taxable value is 100,000 and the SEV is $150,000. Currently the taxes are $2000. So next year at the beginning of May the SEV and taxable value will both become $150,000 (unless the city assessor raises the SEV). Bottom line is that the State equalized value and taxable value becomes the same number. So in this example the taxes would go up to $3000 the following year. So when you look at a property tax statement the main number you want to look at as a homeowner is the TAXABLE VALUE. That is the number you times by the millage rate to get the Michigan property number you will be paying. TAXABLE VALUE X MILLAGE RATE = PROPERTY TAX OWED Then after the first year taxable value resets the taxable value will go up the lesser of 5% or rate of inflation. But Taxable value can go down if SEV goes down to below taxable value or equal to taxable value. If you notice the table below you will see that that taxable value never goes up over 5%. In the years 2005 - 2008 taxable value goes up and the tax amount goes up too. But in 2009 you see that the taxable value went down because the SEV went down. The taxes will have gone down too.
Whether you are buying Metro Detroit real estate or just trying to understand how Michigan property taxes work I hope this helps you.
Russ Ravary your Metro Detroit Real estate serving Oakland, Livingston, and Wayne County real estate
How Michigan property taxes work- homestead taxes and non-homestead taxes - part 1 How Michigan property taxes work - the difference between SEV and taxable value part 2 How Michigan property taxes work - will my property taxes go up after I buy a house - part 3 How Michigan property taxes work - buy a foreclosure with non-homestead taxes - part 4 How Michigan property taxes work - SEV state equalized value - part 6 If you are looking to reduce your property taxes and fight them at you local city give me a call or email me http://www.detroitmichiganrealestatehomes.com/0050FB Posted on Dec 24, 2009 @ 11:32 pm by russ.ravary - View Profile
 russ.ravary  2 feedbacks »
Comment from: fred genther [Visitor] We recently filled out a property tax appeal petition form after meeting with the local (New Buffalo, MI) tax group did absolutely no good. We sent the form and $150 in for the small claims court. The Michigan tax tribunal cashed the check the next day, but never did give us a court date( 9 months ago). However, they "lowered" the assessed value by exactly what I asked in the petition (by almost 20%), but left the imporrtant one, the taxable value, pretty much the same. Since that's the figure that goes into the tax equation, the bottom of our annual notice of assessment said our taxes will decrease by about $10 - Even though I asked for both figures to be reduced about 20%. Calling their number, 517-373-3003 does not good, nobody ever answers it, and we live hundreds of miles away. What do we do? I believe I really was entitled to my day in court! Hell, they cashed my check!  Permalink Mar 26, 2010 @ 1:11 pmComment from: russ.ravary [Member] · http://www.detroitmichiganrealestatehomes.com/ Fred With what you are saying I am betting your SEV originally was much higher than your Taxable value. So when they reduced it to what you requested it reduced your SEV the 20%, reset your taxable value to the same amount of your SEV value. But it probably only lowered your taxable value a little bit because it was already so much lower than your SEV. So in turn it only lowered your taxes a little bit. Permalink Mar 26, 2010 @ 7:37 pmComment on this article This post has no feedback awaiting moderation... |
