Michigan Property Tax

 

Michigan Property Tax Information

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Proposal A

Until 1994, property was valued, for tax purposes, at half its market value. This was called its State Equalized Value, or SEV. In 1994, Michigan voters passed Proposal A. That shifted some of the tax burden off property and onto the sales tax, which rose from four cents on the dollar to six.

 

Proposal A also limited the growth of property tax assessments.

 

The taxable value will be the lowest number out of these four:

 

 

What you really need to know is that this formula can keep taxable value from growing as fast as property value. It limits the growth in taxable value to 5 percent a year or less. With the awful housing market in Michigan this could be the first year that taxable value will lower since the inception of Proposal A. Oakland county for example claims that this is the first year of depreciation since the legislation was passed and some homeowners may actually see a decrease in the tax bill. However, it is up to the taxpayer to make sure that their taxable value is in line with the current market value of their home. While residents of Michigan are plagued with decreasing home values, there may be some relief in the form of lower property tax.

 

State of Michigan Property Tax Estimator

You can now access estimates on property taxes by local unit and school district, using 2009 millage rates. Click the link below to begin.

Property Tax Estimator

 

 

TAX RATES

Property owners can calculate their tax bill by multiplying that taxable value by the tax rate. In Michigan, the property tax rate is called a millage, and it is figured in mills. A mill equals $1 in taxation for every $1,000 in taxable value.

A parcel may have several millages in its tax rate. There is likely to be a millage to operate local government, and another for the county. Part of the millage rate mayinclude mills for libraries, police and fire or schools.

Millage rates are not shown on assessment notices. Property owners can find out their millage rates by looking at their tax bills, or calling their local assessor, or their mortgage company. With the taxable value alone, a property owner can tell how much a tax proposal will cost, just by multiplying the millage rate of the proposal by taxable value. The owner of a parcel with a taxable value of $50,000 who votes on a 2-mill issue would be voting on an additional $100 a year in taxes.

 

On April 8, 2008, Governor Granholm signed House Bill 4215, enacting Public Act 96 of 2008, which amended Section 211.7cc of the General Property Tax Act, Public Act 206 of 1893.  The amendment enables a person who has established a new principal residence to retain a Principal Residence Exemption (PRE) on property previously exempt as the owner's principal residence that is not occupied and for sale by submitting a Conditional Rescission of Principal Residence Exemption Form #4640 (attached)  The conditional rescission allows an owner to receive a PRE on his or her new property and on previously exempted property simultaneously if certain criteria are met. 

An owner may receive the PRE on the previous principal residence for up to three years if that property is not occupied, is for sale, is not leased, and is not used for any business or commercial purpose.  The opportunity to apply and qualify for a conditional rescission begins for the 2008 tax year and is not retroactive to previous tax years.  To qualify for the conditional rescission in 2008, Form #4640 must be submitted to the assessor of the local unit of government where the property is located on or before May 1, 2008.  The Board of Review has no authority with regard to a conditional rescission and cannot institute a conditional rescission on behalf of a owner if a deadline is missed or for previous tax years. 

An owner must annually submit Form #4640 on or before December 31 to verify to the assessor that the property for which the PRE is retained is not occupied, is for sale, is not leased, and is not used for any business or commercial purpose.  The Department of Treasury is in the process of developing a Frequently Asked Question sheet to address various issues related to the new conditional rescission.

 


Michigan Counties

 
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