My Property Assessment is Lower ... Why are my Taxes are Higher !

Real Estate Agent with The Michigan Group - Livingston

Tax Assessor's View of Your Property


Regarding Property Assessments & Taxable Value ...


The current method of property taxation created by a constitutional amendment On March 15, 1994; commonly know as the Headley Amendment or  Proposal A.


When Michigan voters approved proposal A, a properties  "taxable value" was established by its current 1994 State Equalized Value (SEV.) Proposal A was established to limit the growth in property taxes by an amount not to exceed the consumer Price Index (CPI) or the rate of inflation, which ever is lower, but in no case may it exceed 5.0% annually.  The "taxable value" is capped until ownership in the property is sold. Upon a sale, the taxable value is uncapped and becomes equal to the State Equalized Value.


Proposal A "tax reduction" resulted in a reduction in the school operating millage;to  compensate for the reduction on school operating revenue, the State Sales Tax was increased to 6.0% from 4.0%


Property owner's current tax  is determined by the millage rate and the "taxable value." The "state equalized value" is determined by the local tax assessor and computed from "sales studies"  for a period of usually starting 2 year prior to the current year.. i.e. for 2008 most assessors use  the period of sales from  April 1st 2006 thru March 31st 2007.


In order to achieve a reduction in taxes, one's SEV must be below the current "taxable value."


Complicating the process is "Lansing" mandate, which essentially prohibits our local assessor from using bank foreclosed sales in the "sales study."


Qualifying Realtors are able to provide additional  neighborhood sales studies that provide additional sales data to the local assessor - for tax reductions.


If a family is experiencing a financial hardship, the local assessor has the power to "forgive" most of the current year's tax. Please contact your qualified Realtor or local assessor with your concerns.


So my question is: What can be done to make "Lansing" more responsive to homeowners taxing dilemma?  


Bill Fear contact me at Bill@BillFear   (810) 923-4361 or Just Click Here

Comments (4)

Lu Kalaj
Vision Realty Centers - Brighton Township, MI
Yes, I looked at my assessments, and the SEV's have dropped, but not the tax dollars.  Hmmmm.  quite interesting.  Thanks for blogging. 
Mar 10, 2008 02:09 AM
Bill Fear
The Michigan Group - Livingston - Brighton Township, MI
Your improvng
Mar 10, 2008 05:43 AM
Matthew Frazier

Here is my situation,

I bought a house in Dec. 2006 for 65,000 dollars and the taxable value was raised in 2007 by 5,000 and now on 2008 they raised my taxable value by 12,000.

Do they have the legal right to raise the taxable value by that much?

Thanks for your inpute.

God Bless

Matthew F. 

May 02, 2008 11:17 AM
Cari Pilon
RE:STYLE Home Staging - Brighton, MI
RE:STYLE Home Staging

"So my question is: What can be done to make "Lansing" more responsive to homeowners taxing dilemma?"

Replace Granholm -ugh  

May 02, 2008 03:09 PM