Property taxes in MI (credit, income, housing)

[Bydand]

Originally Posted by diamondgirl45

I have heard that the property taxes that are listed on the actual house listing can be negotiated if the home is your primary dwelling. Does anyone know about this??

Do you mean the homestead property tax credit maybe? Taxes - Homestead Property Tax Credit

[diamondgirl45]

Originally Posted by Bydand

Do you mean the homestead property tax credit maybe? Taxes - Homestead Property Tax Credit

That could be it. My husband said not to be turned off by the high tax rate because it isn't necessarily the rate the new owner will pay. He was told that if the house sells for less than the last owner paid for it then it might be re-assessed. Otherwise the taxes are so HIGH!!

[Sparrow_temp]

Traditionally you could always expect the taxes to go up because the new owner would have paid more than the original owner did. I doubt many places are selling in MI for significantly lower amounts than what the original owners purchased at. Housing owners lost a lot or all of their paper gains lately but I'm not sure too many (unless they are very recent purchasers) lost a significant percentage of their original purchase price -- especially enough to make a difference in taxes.

Bottomline -- find out the millage rate in the area you want to buy and multiply it by half of your purchase price and that's what you'll be paying per year in taxes. You'll see that go up as your assessed values go up and as people vote in tax increases.

[trapper1]

If you buy a home in michigan you can expect to pay a LOT more than the original owners did. In Michigan the way the law is they can only raise the taxable amount so much(the amount you pay taxes on )but can raise the assesed value to what ever they want untill the house is sold then the new taxible value goes up to what the assesed value is at.

OH and good luck fighting the large jump even if you pay far less than the assesed value.(in almost every case)If the state says it is worth so much that is what is is worth no mater what the market or lender says it is worth.It may not be right but that is the way it is in michigan!!!!

trapper1

[UpperPeninsulaRon]

Originally Posted by FreeMarketSlave

I have seen a lot of people complaining that their property tax is outrageous. Is this only in Detroit, or is it a statewide problem. Are property taxes way out in the county cheaper?
There are a lot of repos all over MI, but i am more interested in the UP area, away from city limits. How are taxes there?
Just wondering...

In the UP, some of the cities with newer schools to be paid off can be a little steep. However, if you are looking for someplace like Luce County (middle eastern UP) a $120,000 home would have taxes of about $1,200.

[freakshow10mm]

I pay $780 per year for property taxes.

[Sparrow_temp]

The raw amount you pay in taxes doesn't really mean a lot. It's the millage rate that people should be posting so people can see how much more or less they would be paying in a different area for the same house.

[Bydand]

Originally Posted by Sparrow_temp

The raw amount you pay in taxes doesn't really mean a lot. It's the millage rate that people should be posting so people can see how much more or less they would be paying in a different area for the same house.

Agreed, but along with Millage rates you would need to know the percentage of the houses value that is taxed. Recently I have lived in both Michigan and Maine (different years so the houses were primary residences), millage rates in the two towns are exactly the same, difference is that Michigan taxes at 50% of valuation, while Maine, by law taxes at 100% of valuation. So same millage rates, but the same valuation house would cost twice as much in Maine in taxes.

Plus there is no cap on how much the Taxable valuation can go up in a year like Michigan, so the taxes on the house n Maine went up 250% in a 3 year period. (Not due to improvement or additions)

[freakshow10mm]

I don't know millage or amount of value taxed. I paid $30K for my house, appraised at $32K and pay $65 per month for taxes.

[Sparrow_temp]

So, assuming the assessed value is 1/2 of 32K (16K) and your taxes are $65/mo ($780/yr) -- the millage should be 780/16000 * 1000 = 48.75 mills. Is that right?

Originally Posted by freakshow10mm

I don't know millage or amount of value taxed. I paid $30K for my house, appraised at $32K and pay $65 per month for taxes.