[janette moss]

I hear this formula so many times, even on Good Morning America. They say it takes a few weeks to complete this process. Also heard you can get a comparison sheet of other people's home taxes in your subdivision or neighborhood and "head for City Hall!" I got the comparison sheet from the realtor, but did not go to City Hall. Everyone looked like they were in the same "tax boat". I let it go and figured "my arms are too short to box City Hall" and it would be a TKO. Another realtor told me it could go the other way -- your taxes can be raised. What's the real deal on "trying" to lower property taxes and what was the equasion factor if you tried the formula?

[trmaoy]

Okay, I'm not an expert but this is what I was told a couple of years ago by my township.

Your property taxes are based on the taxable value, which cannot be higher than the SEV. Taxable value is only allowed to increase by a certain percentage each year, or the rate of inflation, whichever is less. The exception is if you improve the property. Your appraised value can go significantly higher than the taxable value because it is based on what you should be able to get in the market if you sell. Appraised value is one half of SEV.

Now, if you improve the property by adding a deck, finish basement etc., they can add value to your taxable value because it is based on a formula.

In 2004 we finished our basement and did it the "legal" way by getting permits etc. After the work was completed the home was appraised by the tax assessor and our taxable value increased by like $20,000 in one year! It was crazy, and I had him walk me through how he came up with the numbers. It is all based on a formula.

The only way your taxable value will decrease is if your SEV decreases because taxable value cannot be more than SEV.

So for example, for our assessment for 2007, the SEV decreased by over $30,000, which automatically lowered the taxable value. Our taxable value is now equal to the SEV. Since taxable value went down, taxes should also go down. Now, let's say next year, they jack up the SEV by $30,000. Taxable value can only increase by a certain percentage so it will still be lower than the SEV.

Look at your past assessment notices and you should see the relationship between taxable value and SEV.

[trmaoy]

One other thing, the reason why your taxes can go up even if your appraised value/SEV goes down, is because it may not go down enough to bring the taxable value down. Since taxable value will increase until it catches up to the appraised value, your taxes can go up even with the value going down.

[janette moss]

Originally Posted by trmaoy

Okay, I'm not an expert but this is what I was told a couple of years ago by my township.

Your property taxes are based on the taxable value, which cannot be higher than the SEV. Taxable value is only allowed to increase by a certain percentage each year, or the rate of inflation, whichever is less. The exception is if you improve the property. Your appraised value can go significantly higher than the taxable value because it is based on what you should be able to get in the market if you sell. Appraised value is one half of SEV.

Now, if you improve the property by adding a deck, finish basement etc., they can add value to your taxable value because it is based on a formula.

In 2004 we finished our basement and did it the "legal" way by getting permits etc. After the work was completed the home was appraised by the tax assessor and our taxable value increased by like $20,000 in one year! It was crazy, and I had him walk me through how he came up with the numbers. It is all based on a formula.

The only way your taxable value will decrease is if your SEV decreases because taxable value cannot be more than SEV.

So for example, for our assessment for 2007, the SEV decreased by over $30,000, which automatically lowered the taxable value. Our taxable value is now equal to the SEV. Since taxable value went down, taxes should also go down. Now, let's say next year, they jack up the SEV by $30,000. Taxable value can only increase by a certain percentage so it will still be lower than the SEV.

Look at your past assessment notices and you should see the relationship between taxable value and SEV.

Thank you very much for you information. You explained it very thoroughly. You may not be an expert (as you say), but you understood and broke it down in "layman terms". Very helpful!!

[h.hill]

assment of property will be a hard one to get them to go down.
Michigan is loosing money faster then the titanic took on water.
They will try anything to pick your pocket for a extra dime and at the same time not spening a $ to fix the pothole at the end of your road.

[mich2fla]

When we had our house built in Ada back in 2004. During the winter of 2005, we received an appraisal from the township. It was significant more that what we paid for, about $35,000 more than we think it's worth. We called our realtor and ask for comps that sold near my house the last 6 months. We appealed with Cascade Township. My wife and I had to present our case in front of the 5 person committee. We gave them lots of photographs of our house, pictures and information of other homes sold around us. They agreed that we have a good case. A few weeks later we received a letter in the mail from the township, they lowered our assessed value by $30,000. We were happy and accepted it.