Property taxes (assessments) in Michigan (Warren: housing, title, business)

[dagnabit9]

I know this has been addressed in a couple of threads here, but I would like to know some specifics in how property taxes are assessed in Michigan, more specifically, how the property is re-assessed after a home sale.

I bought a home in Warren in 1977, and to tell you the truth, I never much thought about how taxes were assessed then (heck, I was only 22!). I am thinking of moving back (see the "Am I Crazy" thread) and am starting to think about things of that nature.

I'm inquiring because I have been alerted to how they assess taxes here in New Mexico after a home sale and it's alarming, to say the least. The county has a cap they must adhere to in assessing taxes every year - they can't be raised over a specific amount (3%, I think). However, after a home sale, the assessor can re-evalute the property and levy some really hefty amounts. I've heard of people buying and thinking their house payment would include assessed taxes based on the previous years tax bill, and then get a tax bill the next year raising their taxes 300-400% or more!

Is this the way they do business in Michigan? I need to know so I can make a mental note of how much it will affect my house payments.

Thanks in advance...

[YAZ]

I don't know the formula, but yes, if you buy a home now, you'll pay higher taxes than the previous owner.

[Sparrow_temp]

Your rate is based on what you purchased the property for. I think it's purchase price/2*millage rate. If your paying more in taxes than the previous owner, it's only because the previous owner paid less for the house and had the rate of increase capped. The formula in NM should have been purchase price/3 * millage rate. With housing prices falling -- you may not see that large of an increase from previous owner unless they have been there a long time.

[TaxBait]

Originally Posted by Sparrow_temp

Your rate is based on what you purchased the property for...

Ideally, but some are very aggressive. Of all the homes in my sub that sold in the last 3 years, all are currently assessed well above selling price. This is despite the fact that prices have been flat or negative. And they think they are entitled to the inflationary increase every year regardless of actual market value. Arguing the point at a board of review is like talking to the wall.
Assuming you can get an assessor to agree that what you paid is fair market value, the calculator at this web site is spot on:
https://treas-secure.state.mi.us/pte...testimator.asp
I highly recommend talking to the assessor first. Ask for property cards for other homes in the area that have changed hands recently.