Michigan Property Taxes are BAD (Lansing, Jackson: house, condo, rent)

[UpperPeninsulaRon]

I must take exception to the statement that "a $200K house is a luxury in that state". My folks are looking at a three bedroom, two bath modular (manufactured) home with a garage that would be $180,000 on a city lot. In addition, to take your example, I don't think that my 87 year old parents should consider a home that needs TLC and I do not know where in the state you think that $50K will get you a decent place.

[BurtsBees]

Originally Posted by Milabs

I am in SW Mi and our taxes are dirt cheap...less than 1k a yr. It's common knowledge that the college towns will be more pricey when it comes to taxes but the whole state isn't ridden with high property taxes.

Fraser's property taxes sure arent cheap...

[TurboState]

I cannot understand people that are resolved to paying a lot in taxes and try to justify it. Do people even realize that places like New Hampshire DO NOT have Income or Sales tax??? Yet magically, their property taxes are actually LOWER than Michigan! One problem for Michigan, have some pretty large poor minority centers draining our state. Flint, Detroit and Pontiac put a tremendous strain on the entire state. States like New Hampshire don't have massive minority entitlement programs that politicians feel they need to get elected. As for Michigan property taxes, consider they are half of what they were 10 years ago before Engler cut them in half. Imagine paying double what you are now?!?!?

I agree though, our higher property taxes are keeping the state down, and keeping people from retiring here. We were going to relocate to Pestoskey Michigan, lovely little city on the bay. Then the real estate agent told me the taxes were HIGHER than our big house in Royal Oak?!!?!?!? What the heck is wrong with that picture? Granholm won't do much, and in a few years we'll elect someone else and try to forget her entirely forgettable legacy.

Aboid taxes as much as possible, consider these tips;

1) Maximize deductions in a big way.. Write off EVERYTHING you can.
2) Purchase taxable goods over the internet to avoid the 6% sales tax. Sure the IRS wants you to put these down on the forms, but who would bother? They cannot prove a darn thing, and it is illegal for them to force out of state companies to provide purchase lists. 6% saves a lot.
3) Register a small business, then use the license for tax free purchases in state. (and write off everything you do on the business)
4) Pay cash for home improvements, don't get building permits. (Permits = higher taxes)

Now I know this sounds "Lame", but come on folks.. When you pay so darn much in taxes, have to tolerate triple-dip taxation on everything (which is constitutionally illegal), why not do what you have to do to hang on to more of your money? You don't think businesses aren't already using loopholes themselves, do you?

[horizons202]

Originally Posted by Kingsnkali

I wonder how many thousands of Baby Boomer future retirees have crossed off Michigan from their lists of possible destinations because of Michigan property taxes?

It really is sad too. Michigan has alot to offer us and we have alot to offer Michigan.

Us younger retirees will be bringing in lots of money to small communities. We can't do that in Michigan. I can't afford the property taxes. They are double what I am paying in California for the same or less house.

Does Michigan even realize the number of service jobs we will create when we move into these small towns? Many of these towns are DYING. Us retirees would be like year-round tourists. $$$$

We ARE the jobs of the future for small towns. Remodeling. Painting. Plumbing. Home improvement. Shoping. Entertainment. Fishing. Hunting.

All we do is spend money.

We can't do that when Michigan kills us on property taxes.

If you think it's bad in Michigan, you should see what's happening in Florida. And if you're thinking of moving here, forget it. Property taxes are outrageous; they are talking about raising the sales tax to 8.5%! If you're a long time non-homestead in Florida, you're doing great. But if you come to buy a place down here, BEWARE! Property taxes will kill you.

[joenc]

High property taxes are one of the reasons my parents originally left Michigan. They had a $600k house, and a few offices (check out property taxes on commercial property!!).

I think I pay around $5,400 on a $900,000 (assessed and priced well at 8,000 sq feet) house in an exurb of Charlotte.

[Mi_Mom]

I think we pay $3300 or so a year for our $150K house.

[jdaryl2002]

Originally Posted by horizons202

If you think it's bad in Michigan, you should see what's happening in Florida. And if you're thinking of moving here, forget it. Property taxes are outrageous; they are talking about raising the sales tax to 8.5%! If you're a long time non-homestead in Florida, you're doing great. But if you come to buy a place down here, BEWARE! Property taxes will kill you.

Please don’t compare Florida to Michigan. I have a home in Florida ( West Orange County, Orlando) and its 1600sq and taxes are $2400. When I bought my house in 1997 it was only $1200 in taxes. But did anyone ever mention the reason property taxes are so high now in Florida is because the home values has increased. Mine I paid $124.000 in 1997 and just sold it last month for $305.000.

[cksh]

Taxes are horrible here in SE Michigan. I can't believe how much I would have to fork over for only 200k house. I think Detroit and Kalamazoo are the most expensive but I can't remember. With Westland, right down the road from me, being number 3. Would be paying about 4-5k there.

Has anyone heard anything more about a bill (or whatever its called) being passed here that would allow home buyers to pay the same amount of tax as the previous owners? Not sure of that is only for a short time (18 Months), or if the money I pay never change?

[Tom in Atlanta]

I am in the real estate business and have heard my fair share of complaints about property taxes. I do not think raising them is in our best interest at this time. Proposal A of 1994 was a real good sounding proposal to the public at the time and what did we get?

A proposal to increase the state sales and use tax rates from 4% to 6%, limit annual increases in property tax assessments, exempt school operating millages from uniform taxation requirement and require 3/4 vote of Legislature to exceed statutorily established school operating millage rates. The proposed constitutional amendment would:

Limit annual assessment increase for each property parcel to 5% or inflation rate, whichever is less. When property is sold or transferred, adjust assessment to current value. Increase the sales/use tax. Dedicate additional revenue to schools.
Exempt school operating millages from uniform taxation requirement.
Require 3/4 vote of Legislature to exceed school operating millage rates.
Activate laws raising additional school revenues through taxation including partial restoration of property tax.
Nullify alternative laws raising school revenues through taxation, including an increase income tax, personal exemption increase, and partial restoration of property taxes.

Sounded good at the time, didn't it and Lansing knew that people would eventually sell their homes or buy second homes in Michigan. If you had your home before Proposal A, you have a cap on your tax. When it is or was sold, the cap comes off. We used to be the #1 state for people owning second homes in the United States. Second homes do not get a homestead tax advantage. I think we should lower property taxes and put a sales tax on food so everyone has to pay for part of the taxes in Michigan. This way the majority of the burden is not put on the property owner. Also, Farmers are taxed way to high on Farm Land in Michigan and tried to get a lower property tax passed that was turned down.

What happened to the Lottery? That was the fix all - do all for schools. There was talk in Lansing that selling the lottery may be the winning ticket. Why would we sell a moneymaker like that?

Lansing is way to fat on State Pay for employees working at the capital. Our Governor is the second highest paid in the nation and is sure of an excellent retirement package. She said that she could not afford to take a pay decrease or has anyone else in Lansing. State Employees went without for a few years while Lansing Legislators gave themselves 38% raises. Talk about your corrupt government. Moreover, we all stood by and let it happen. Repealing the obscene 38% pay raise would be a good start in letting us know that the powers to be are trying to help Michigan recover. Jennifer Granholm is the second highest paid governor in the US. Per the State of Michigan website and she receives $172,000.00 per year. Not to mention all of the perks that come along with the job.

To save us Money, Lansing is closing down a Prison in Jackson. Southern Michigan Correctional Facility (JMF). This prison just opened in 1997 after it was extensively remodeled and millions of dollars spent before opening, JMF is a multi-level facility, with double-bunked Level II cells and single occupancy cells for Level IV and segregation (administrative and temporary) prisoners. There is a capacity for 1,368 prisoners housed in general population and 94 in segregation. Two housing units are handicapped accessible with an elevator to accommodate handicapped prisoners and staff. Ancillary areas include gym, medical, dialysis, dental, school, library, quartermaster, special activities, food service, and administration. JMF houses prisoners with specified medical needs, area court hearing(s), scheduled parole/discharge in the near future, educational/vocational needs, or who have been classified to segregation. This is a Medical and Psych. Prison. That is why it costs so much to operate it. Six months ago, Tim Souders, a prisoner, was in solitary confinement at the Southern Michigan Correctional Facility. He was 21, serving three to five years. Though an investigation would show he needed urgent psychiatric care, Souders was chained down, hands, feet and waist, up to 17 hours at a time. By prison rules, all of it was recorded on a 24-hour surveillance camera and by the guards themselves. The tape records a rapid descent: he started apparently healthy, but in four days, Souders could barely walk. In the shower, he fell over. The guards brought him back in a wheelchair, but then chained him down again. On Aug. 6th, 2006 he was released from restraints and fell for the last time. Souders had died of dehydration and only the surveillance camera took notice. In part because of the death of Timothy Souders, a federal judge in the case of Hadix v. Caruso ordered wide-ranging reforms in the prison mental health care, including an end to the in-cell use of mechanical restraints in most circumstances. Hadix is a federal civil rights class action involving the medical care, mental health care, fire safety and protection from excessive heat at three prisons in Jackson, Mich., the Egeler Correctional Facility, the Southern Michigan Correctional Facility (JMF), and the Parnell Correctional Facility. These three prisons contain thousands of prisoners, including a concentrated population of medically fragile prisoners at JMF. The state wants this to go away. If the prison is closed, the problem goes away. This is not being done to save us money. All those prisoners that need medical care will still get it. Not many of these prisoners can be sent to a Level 1 prison let alone be set loose on society because of their crimes and must be sent to a secure Level 2 facility.

Also raising the costs of Hunting and Fishing licenses is not a good way to generate more cash.

I keep remembering sayings like this; “In five years, you’re going to be blown away” or “In this first round of funding, 500 companies applied. 500 companies who want to come to Michigan and to grow in Michigan and hire tens of thousands of people in Michigan in areas that won’t be outsourced. And so my friends, we are thrilled with how this economic plan is working.“

It seems in Michigan, if you rent, just buy food, & shop on the net, you can live pretty well. The rest of us will have to suffer.

I sure hope we get Michigan straightened out before it is to late.

[TurboState]

It ain't bad for homeowners if you know how to shelter a lot of the tax liability. For example start a small business, don't make any money, but write off everything under the business.

There are literally dozens of methods like this to negate the tax liability to a large amount. Big corporations use loopholes, why not you?

You make a good point about ordering over the net to avoid nonsense 6% sales tax. We order 90% of anything we buy out of state to avoid the tax. There are many methods to further avoid these things but I won't go into them publically.

Bottom line, if you are smart and know how to stroke the system, Michigan ain't a bad place to be I guess.