When a buyer wants to purchase a new home in the Ann Arbor market area, we often get asked, will be property taxes go up or down?
Not an easy question to answer because it depends on many factors. Each municipality uses their own factors for determining the taxes.For some it is the values in the overall neighborhood and for some it is the sales price of the home.
Lets say you bought a home in 2006, the top of the market in Ann Arbor. When you sold and a new buyer comes along, they are looking at an assessment or SEV based on the purchase price at that time. If the new buyer purchases a home that is 100K lower than what the original owners paid, it is up to the new buyer to challenge that based on the purchase price in 2010.
I have found not all municipalities will reduce the taxes, but some will.
We encourage our buyers to go the the Michigan Property Tax Estimator site and put in the homes information. From there you can see if what the ESTIMATED taxes will be. This is helpful if you bought a foreclosure that the taxes have been taken from Homestead to Non-Homestead.
Trust me it is not perfect but it is a good place to start based on the current mileage rates in each school district. Here are the disclaimers on the Mi Property Tax Estimator Site.
- Millage rates are those levied and billed in 2009. Rates for 2010 will be posted in July 2011. Rates include the 1% property tax administration fee.
- Rates include special assessments levied on a millage basis and levied in all of a township, city, or village. Rates also include special assessments levied on a millage basis for police, fire or advanced life support and levied township-wide excluding a village. Rates do not include other special assessments.
- In a few local unit/school district combinations, community college millage is levied on some properties but not others, or there are different community colleges in parts of the area. The database uses only one community college rate (or none if most of the area is not in the community college district).
- Some properties that have been transferred from one school district to another pay operating millage to one school district and debt millage to another. The database typically does not include rates for these transfer properties.
If you have questions about SEV, homestead, non-homestead contact the Missy Caulk TEAM.