how Michigan property taxes work – reducing your Michigan property taxes part 9

So now that you know how Michigan property taxes work, now how do you go about reducing your Michigan property taxes?

So you think you are overpaying on your Michigan taxes?  But what number are you looking at on your tax statement?  Are you looking at the taxable value number?  Remember that is the number the city bases your tax payment on.  It doesn’t matter whether theState Equalized value (SEV) goes up or down.  Your only concern is the Taxable Value number!

So multiple the taxable value by 2.  How does that number compare to what you think the houses value is.  Let’s say the taxable value is $143,000.  Times that by 2 and you get $286,000.   But you think your house is only worth $220,000.  Then it is worth fighting to get your Michigan property tax assessment reduced.

Let’s go over this again

In 2007 the SEV was   180,000 and the taxable value was $139,000

In 2008 the SEV was   170,000 and the taxable value was $143,000

Remember it doesn’t matter what the State Equalized Value (SEV) is.  It doesn’t matter if it goes up or down.  Remember look at the taxable value number.  That’s what your tax bill is based on.  But to further confuse you….when you fight to reduce your Michigan property taxes you are really lowering the state equalized value (SEV) to get to the point where it will lower the taxable value at the same time.

So when you go to the tax review board and they lower the SEV,

OK lets do two different scenarios based on the 2008 numbers of the SEV was 170,000 and the taxable value was $143,000.

So if you fight the taxes and the board lowers the SEV to $150,000.  It doesn’t lower your tax bill but it does get it closer to the taxable value which is good.  So it still would be good to do even though it doesn’t save you money.

The goal is to get the local tax review board to lower the SEV below the taxable value number so it lowers your tax bill.  So again going back to our scenario where the taxable value is $143,000 you want to get the board to get the SEV down to (let’s say) $137,000.  Then the taxable value will become $137,000 too.

I know this explanation is confusing, but our Michigan property tax system is confusing.  I hope this explains how to reduce your Michigan property tax assessment.

Russ Ravary your Metro Detroit real estate agent

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How Michigan property taxes work- homestead taxes and non-homestead taxes – part 1

How Michigan property taxes work – the difference between SEV and taxable value part 2 

How Michigan property taxes work – will my property taxes go up after I buy a house – part 3

How Michigan property taxes work – buy a foreclosure with non-homestead taxes – part 4

How Michigan property taxes work – how to read and understand your Metro Detroit property tax statement part 5

How Michigan property taxes work – SEV state equalized value – part 6

how Michigan property taxes work – Taxable value – part 7

how Michigan property taxes work series – homestead exemption – part 8

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