Changing Michigan's property tax system, you may agree! (Detroit, Allen Park: for sale, real estate)

[putALonyourBLOCK]

Are started this thread because I wanted to reply to a comment made in the Flingt section, but it may be more appropriate here.

Any one who is on the side that Michigan's property tax climate is good or "not bad" does not own a lot of property and is not a real estate professional. My name is Al Block. I am a RE/MAX agent in the Metro Detroit area. With out going into a lot of detail ... YET, "ad valorem" taxes in general are unfair. Here is the explanation that even the most liberal, tax-loving Michigander will agree with. Ad Velorem is a latin term that our property taxes are based upon ... based on the "value" of your property. If you study a tax assessor's field sheet, a majority of the value for your State Equalized Value which eventually trickles to your Taxable Value is the improvements to that land. Improvements are dwellings, out-buildings, and land improvements (driveways, walkways, decks, etc.). So, you take 2 property owners. The first guy/gal has a 1 acre lot with $50,000 of improvements. Another has a 1 acre lot with $100,000 of improvements. The 2nd person pays double the taxes. Please tell me why that would be fair. They BOTH own the same share of land in the city/township where they are located. They both breath the same amount of air, take up the same amount of space, it is just that the 2nd has more money. That is AD VELORUM taxation. Here is how Michigan, and many other states, can correct this issue. Property taxation would be based upon a property owner's fair share of the city/townships budget based upon their share ownership of land. Now, this proposal, I know would raise my own taxes. But what is right, is right. So, based upon my idea, if you own a 1 acre lot (using easy numbers here), you will pay half the tax burden as someone who owns a 2 acre lot, double your size, double your share. So, for simple math. If a city/twp. has a $100,000 budget to run all its services/government, and their are 100 land owners, all that has to be done is do the calculation of what their "share or stock" is in that city, and divy up the needed revenue. This way, there is no argument about taxable values, home values, or a big tax bill because some idiot builds a 5 million dollar mansion on a postage size lot. That idiot would still have the same taxes as someone who builds a 2 bedroom, 700 s.f. home on the same size lot. Why? Because their share of ownership of that town is the same. Think of it like a public corporation. If you own 100 share of stock, you have half the ownership value of someone who has 200 share of stock.
I welcome debate if I am way off on this one. I have not even touched the surface on how our current property taxation system hurts property values, limits investment, and drives people into financial ruin. All I speak/write of is from "in the trenches" experience being on the front lines of Michigan real estate. Until you help people buy and sell properties, you don't really see the impact.

Sincerely,

Al Block
Realtor/Appraiser
Moderator cut: contact info removed, realtor advertising is not allowed

[zakian]

Originally Posted by putALonyourBLOCK

Are started this thread because I wanted to reply to a comment made in the Flingt section, but it may be more appropriate here.

Any one who is on the side that Michigan's property tax climate is good or "not bad" does not own a lot of property and is not a real estate professional. My name is Al Block. I am a RE/MAX agent in the Metro Detroit area. With out going into a lot of detail ... YET, "ad valorem" taxes in general are unfair. Here is the explanation that even the most liberal, tax-loving Michigander will agree with. Ad Velorem is a latin term that our property taxes are based upon ... based on the "value" of your property. If you study a tax assessor's field sheet, a majority of the value for your State Equalized Value which eventually trickles to your Taxable Value is the improvements to that land. Improvements are dwellings, out-buildings, and land improvements (driveways, walkways, decks, etc.). So, you take 2 property owners. The first guy/gal has a 1 acre lot with $50,000 of improvements. Another has a 1 acre lot with $100,000 of improvements. The 2nd person pays double the taxes. Please tell me why that would be fair. They BOTH own the same share of land in the city/township where they are located. They both breath the same amount of air, take up the same amount of space, it is just that the 2nd has more money. That is AD VELORUM taxation. Here is how Michigan, and many other states, can correct this issue. Property taxation would be based upon a property owner's fair share of the city/townships budget based upon their share ownership of land. Now, this proposal, I know would raise my own taxes. But what is right, is right. So, based upon my idea, if you own a 1 acre lot (using easy numbers here), you will pay half the tax burden as someone who owns a 2 acre lot, double your size, double your share. So, for simple math. If a city/twp. has a $100,000 budget to run all its services/government, and their are 100 land owners, all that has to be done is do the calculation of what their "share or stock" is in that city, and divy up the needed revenue. This way, there is no argument about taxable values, home values, or a big tax bill because some idiot builds a 5 million dollar mansion on a postage size lot. That idiot would still have the same taxes as someone who builds a 2 bedroom, 700 s.f. home on the same size lot. Why? Because their share of ownership of that town is the same. Think of it like a public corporation. If you own 100 share of stock, you have half the ownership value of someone who has 200 share of stock.
I welcome debate if I am way off on this one. I have not even touched the surface on how our current property taxation system hurts property values, limits investment, and drives people into financial ruin. All I speak/write of is from "in the trenches" experience being on the front lines of Michigan real estate. Until you help people buy and sell properties, you don't really see the impact.

Sincerely,

Al Block
Realtor/Appraiser
Moderator cut: contact info removed, realtor advertising is not allowed

I use to be in real estate.My home is currently up for sale with your company.I pay 1700 +/- in taxes for...... garbage pickup?Plow the streets?
They can't even keep the power on but they found the $$ to repave downtown Allen Park. I watch the city hall ...channel. It's like watching the deaf ,DUMB and blind.My power just came back on .This is the third time in 2 months.Fried my last computer and phone lines.One asswipe calls our part of the city Detoilet.It isn't. It is THEIR responsibility to maintain the city, NOT mine.
Sorry.I'm mad. Want the HELL OUT of here.

[Quemonius]

AD VELORUM taxation, so that's what it's called huh?

Thanks for the proper terminology. As far as a change in the way taxes are configured, I must agree that the current system lacks common sense.

[Blue Grass Fever]

I would suggest everyone to get a property tax worksheet or appraisal card from your local assessor to check for errors, especially if your S.E.V. is (way) higher than your taxable value.

Make sure they're not taxing you on a building that is no longer on your property, the percent good on the home is aligned with the age of the home. All amenities check out, acreage checks out. (etc.)

There can be plenty of mistakes in it.

[johnishere]

I understand your point; it is remotely similar to a flat-tax - everybody breathes the same air so pays the same taxes. However, taxation systems have always been based on how much you are "able" to pay. You earn more, you pay more. You own more, you pay more. I'm not saying I'm against your idea, but would you really want someone who owns a $5 million home, which means they probably earn more than $400,000 a year, paying $2,000 / year in property taxes - the same as the guy across the street who earns $46K a year and lives in a 2 bedroom bungalow worth $75K?

Obviously, if this is fair for property taxes, it is the same principle and should apply to income taxes: breathing same air, so should pay the same taxes. This would mean that the person earning $1 million a year, gets to keep $995,000 of earnings. The person earning $46K a year would get to keep $41K a year. ?