[Giesela]

I don't really have the money to have a second home anywhere but I got the impression somewhere that if you have a second home in Michigan its taxed pretty heavily. I.e. you are better off with that 2nd home in Florida or some other state.

Are there ins and outs to this? At most I might be able to afford a cheap shack on a small lake in the middle of nowhere UP or something. Is it all based on assessed value, type of home, or? What if you had a lake lot and put a seasonal camper on it for 4 months a year? How would that change things?
What is the rate and why is it considered high? As compared to?

[MikeBear]

Michigan has a lower "HOMESTEAD" property tax for the actual home (principal residence) you live in, and a NON-homestead property tax for all other property you own.

Your second house will be taxed on an average of 1/3 higher than the one you call home, and actually live in.

http://www.greenoaktwp.com/document_...Guidelines.pdf

[Giesela]

Thanks for the link. I found this

What determines principal residence?
The criteria Treasury uses to determine
principal residence includes such things as:
where you are registered to vote; the address
on your driver’s license; where your children
attend school; and the address from which
you file your income tax returns.

Which was interesting because I heard for those with FL type places that they had to live in MI for 6 months of the year. But I didn't see anything like that in here. So if you are retired, no children in school, you can choose whichever address works to your advantage tax wise to be your primary residence tax wise?

And when you are looking at taxes on a real estate listing, or taxes on a county website....those are probably homestead taxes right? so add 1/3 if its going to be a vacation home?

[jaynarie]

Originally Posted by Giesela

Thanks for the link. I found this

What determines principal residence?
The criteria Treasury uses to determine
principal residence includes such things as:
where you are registered to vote; the address
on your driver’s license; where your children
attend school; and the address from which
you file your income tax returns.

Which was interesting because I heard for those with FL type places that they had to live in MI for 6 months of the year. But I didn't see anything like that in here. So if you are retired, no children in school, you can choose whichever address works to your advantage tax wise to be your primary residence tax wise?

And when you are looking at taxes on a real estate listing, or taxes on a county website....those are probably homestead taxes right? so add 1/3 if its going to be a vacation home?

Most snowbirds I know use Florida as their primary residence. Car insurance being a major factor. Florida also doesn't have a state income tax, but I'm not sure if that is actually beneficial since they should have to file in both states.

When looking up taxes on a listing or website, it will depend. If the house is currently an investment property or a second home, the taxes will reflect that rate. If it is a primary residence, it will reflect the lower rate. If the municipality offers the itemized breakdown, the additional tax for investment and second homes is usually labeled "SO Tax."