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 http://BillFear.com (810) 923-4361 or Just Click Here
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