Taxes

REAL ESTATE IN HARBOR COUNTRY, MICHIGAN

UNDERSTANDING YOUR NOTICE OF ASSESSMENT

Line 1. Taxable Value. This is what you pay taxes on! (2007 TAXABLE VALUE multiplied by MILLAGE= property taxes. This figure is used to compute the amount of money you will actually pay in real estate taxes. UNLESS THERE HAS BEEN NEW CONSTRUCTION, DEMOLITION, OR A CHANGE IN OWNERSHIP, these figures are "capped" annually (under proposal A- 1994). The MOST that the taxable value can increase from year to year is 5% or the Consumer Price Index, which ever is LESS. The assessed value is one half of the township's determination as to the actual FAIR MARKET VALUE of your property.

WHAT THE TAX ASSESSOR DOES
To find the value of any piece of property the Assessor must first know what the properties similar to it are selling for, what it would cost today to replace it, how much it takes to operate and keep it in repair, what rent it may earn and many other dollar facts affecting its value, such as the current rate of interest charged for borrowing the money to buy or build properties like yours.

The assessor may 1. Find properties like yours which have been recently sold. 2. Determine how much money it would take at current material and labor costs to REPLACE your property with one just like it. If your property is not new he must determine how much it has depreciated. For income producing property or commercial property the assessor determines expenses and income derived.Tax estimator CLICK FOR WORSE CASE SCENARIO!

In short he determines the FAIR MARKET VALUE. One half of the FAIR MARKET VALUE IS YOUR ASSESSED VALUE. THE ASSESSED VALUE MULTIPLIED BY YOUR MILLAGE EQUAL YOUR PROPERTY TAX. USE TAX ESTIMATOR FOR ESTIMATING TAX. DO NOT FREAK OUT!!! THIS IS THE VERY WORSE CASE SCENARIO if you take 50% of SALES PRICE. PLEASE remember THIS IS AN ESTIMATE !

Read how you can increase the value of your property without increasing your property taxes!

Did you know that you can make home improvements that increase the value of your home without adding the cost of higher taxes?

Michigan's Mathieu-Gast Home Improvement Act guarantees that the assessor cannot consider any increase in True Cash Value resulting from normal repairs, replacement, and maintenance made or completed after December 30, 1976, when determining the True Cash Value of the whole property, i.e., its assessment. This increase is not included in the assessment until the property is sold.

A well-maintained home could possibly mean a faster sale and better price when you go to sell your home.

The following are considered normal repairs and are eligible for exclusion from the True Cash Value if not part of new construction:

In some municipalities, assessors routinely exclude painting and other routine repairs when determining the True Cash Value. They may also know about repair work automatically from building permits. If you want to be sure your improvements are excluded, however, you should apply. You must file Form 865 with your local assessor by the end of the year of the year the repairs, replacement or maintenance took place. Please confirm with the municipality how often this form must be filed in order to continue the tax benefit.

If you do not file for non-consideration of the improvements, the assessor may have no grounds on which to exclude your improvements. Work that is done without a permit - where one is require - will not qualify for exclusion.

Each year's assessments may only be appealed in that year, so any benefits of Mathieu-Gast not received in the past years are lost to the taxpayer. However, any Mathieu-Gast improvements made after 1976 when the act took effect should be reported to the assessor. Increase in value resulting from all such improvements can be excluded from future assessment.