It is Board of Review time again, and citizens across the state of Michigan are headed in to appeal their property taxes. If they read the Free Press today, the might be left with the impression that they are destined to be overtaxed. Yes, it does seem ironic that taxable values/SEV's went up last year by 3.7%, the largest increase since 1994, in a year that property values fell.
A few things to remember:
- Dmitry and I routinely assist our clients with property tax issues. You will need a recent set of comparable sales to defend your request for a reduction in taxes. We will provide this for our clients.
- The city of Birmingham lays out the board of review process very well.
- If you are considering a move in the next few years and you have lived in your home a long time, you should closely review your assessment. Even though your taxes are capped, they will become uncapped for the next purchaser. If your SEV is above market value, this could impact the resale of your home as the new buyer will be paying a higher rate based on your current SEV. It is best to take care of this sooner, rather than later.
My personal opinion has remain unchanged. Prop A is intrinsically unfair and it is hurting the Michigan real estate market and adding to our economic challenges. Two identical properties should not be taxed differently just because one has been owned longer.
For more information about Michigan real estate and issues that impact property owners, visit miOaklandCounty.com.
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The rising tax is a concern in many markets and has a direct bearing on the real estate market. In some area because of the taxes young families can't move in.
I too believe that identical properties should have similar taxes. What gets me is the people who use all sorts of loop holes to get their taxes lower such as the agricultural breaks but are merely hobby farmers, the intent is to have it all but at the same time pay less than the average homeowner.
This is really, really important and great for a post. I'm going in next week to contest mine. I have to say that even the people in our County Auditor's Office are encouraging us to speak up! Good job Mo.
Oh GREAT! Just when you thought it was safe to go outside again! What a great bargain. Market values decline, so we'll increase your property taxes too! Gosh, where do we sign up? Sorry to hear of the continuing challenges in your market there. Your clients no doubt value the extra services you provide!
Oh no, Maureen! How many turnips are they going to try to squeeze blood out of? This does not make any sense. Aren't MI taxes pretty high anyway? Geesh!
Contesting taxes is appropriate when there is evidence of over evaluation. Many homeowners don't realize there is a process in place to contest. I am always happy to help my customers here in Colorado. It's a great day when the date I provide helps them save a few bucks.
I can see you offer the same services. Good for you.
kk
We have the same problem here and our taxes are not capped. The assessments were on steroids this year.
We have a way to "restrict" our taxes through homestead exemption. For example: My taxes are about 1600 per year. I have lived in the home for about 10 years. My neighbor with the same floor plan are about $5,000. I am now taxed into my house!
Maureen - if only they'd be honest, lower the assessment to reflect the market and raise the tax rate - then people would know what was going on.
Chris - despite the inequities, Save Our Homes is doing what it was intended to do. Better to be taxed into your house than be elderly and forced to sell the house you've paid for and spent a lifetime in because you can't afford the taxes. That happened to my in-laws in Massachusetts.
I had an interesting discussions with some brokers this afternoon. We were talking about the proposed 2% tax on services in Michigan, which would also include a 2% tax on real estate commissions. One of the gentlemen remarked, (and I paraphrase) "Isn't interesting that Michgan is being challenged economically and is number 50 on the list of states for economic growth but our tax rates place us 44 out of 50 states."
The issue in Michigan is not taxes...we're collecting a lot of them, it's management.
Local property taxes have spiralled out of control partially due to unfunded state and federal mandates in many locales in the nation. A realtor can become a taxpayer's best friend by providing good comparable sales. I'm sure there are lots of people unfairly taxed because they don't know the process.
MAUREEN -
Thanks for the valuable insight on this important topic...I appreciate your professional opinion regarding my personal real estate tax issue.
BRIAN BRASS