I will be blogging about fighting your tax assessment quite a bit the next month. Tax notices will be coming out next month. With home values falling in Southeastern Michigan you may be able to reduce your tax burden.
Many people do not know how to read their property tax statement. This is another item they should teach in school but they do not. It is important and people get confused about the statement.
There are 2 numbers on your Michigan property tax notice. One is the state equalized value (SEV) and the other is taxable value. State Equalized value is the 1/2 of the value the local assessor places as the cash value or fair market value of your home. Taxable value is the actual number that the muncipality uses to figure how much your taxes are. Taxable value x your Millage rate = amount of taxes you owe. Normally the taxable value number is lower than the SEV.
Look at your statement. See the two numbers (Taxable value and SEV). Sure the assessor thinks your house is worth a lot. But times both the taxable value and SEV by 2. The taxable should be lower or equal to the SEV.
In order to make it worthwhile to reduce your taxes, homes in your area should be selling less that the taxable value times 2. For example. Your tax statement reads taxable value as $115,500 and the SEV as $163,750. The assessor thinks your house is worth $325,500 (163,750 x 2) but you are only being taxed on the value of $231,000 (115,500 X 2). In order to reduce your taxes in this instance, homes comparable to yours would have sold less that 231,000. You need comparables to prove to the board of review and the Michigan tax tribunal that they should reduce your taxes.
For more on how to fight you taxes, steps and timeline involved in fighting your taxes, and understanding your tax bill go to my website www.russravary.com The information is in a yellow box on my home page. Click on the section you want to know more about.
Have a great night!
__________________________________________________________
My Month of April quote:
"Sometimes the only way to get to the far shore is to lose sight of the shore you just left"
Russ Ravary
"helping make your move easier"
your local Metro Detroit Realtor helping clients like you sell and buy homes through out the entire Metro Detroit suburbs. I love showing and selling Oakland County and Livingston County Lake front homes too.
So is it better to have your house reassessed now during a down market? We had our house appraised in 2004 when we bought it. We pay over $4500 a year in taxes. Small town in Genesee county - Montrose.
2006 Millage rates were 46.6 mills in 2006. Our house appraised for $170,000. I'll have to check what my Taxable Value is.
I know we wouldn't get a $170,000 for it in today's market.
Would a lower appraisal help our taxable value to come down?
thanks for all of the great information...I learned a lot!
Mike,
Yes a lower appraisal will help you lower your taxes. Yes it is best to fight the taxes now in a down market. What you are fighting is the assessed value SEV What is that number? Times that number by two and you probably get around $170,000 range. If you fight your taxes your home has to appraise less than The SEV and the taxable value to lower what you are paying. Good luck. To read more on fighting taxes go to my website www.russravary.com