Property Tax Thoughts
Here in Northern Michigan one area often confused is the amount of property taxes that will become due when tax time rolls around. The listing sheet always has current taxes but rarely do they go unchanged for the next owner after a sale. There are two tax numbers to keep in mind. First is Assessed Value and the other is Taxable Value. The Assessed Value or SEV is established by the local assessor based on several factors and calculations and raises yearly at a pre-determined rate. The Taxable value raises yearly also. but at a different rate and the longer a parcel is owned the larger the difference between the two. The thing to watch for is when a purchase is made the parcel uncaps and the Taxable Value raises up to the Assessed value. The new Assessed Value will once again be determined by the assessor but is roughly half of what the assessor feels the parcel is valued at. The thing to what for is if a parcel has been owned a long time the taxes can double or even triple when it is sold. The previous owner's Assessed Value (or SEV) will become the Taxable Value to the new owner. Better do your math and check on this. I recently showed a repo that was priced at $99,000 but the Assessed Value was $125,000 which doubled means the taxes would be based on a home with a $250,000 value which in this case would be about a $2,000 difference. You can come close by checking out the State of Michigan’s Property Tax Estimator: TAX ESTIMATOR . You just fill in the SEV of the previous owner, the County, Township and school district and the Estimator does the rest. It will show amounts for both Homestead and Non Homestead (whether or no this is your principle residence). Another way is to contact the assessor for the township where the parcel is located. The point is the time for checking is BEFORE you purchase.
As always if you think the Big Rapids area is a place you would like to live give us a call (231) 796-5253 or check out either link below and we will help you find a house so the Big Rapids area can be your home too. Thanks for reading.
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Randy Ostrander |
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