This is a question I get asked a lot! Often times before Buyers even explore a new property, they want to know what the property taxes are. And, while it may be of interest, it's more important to ask..."what will the taxes be on this property?"
When you buy a property in Michigan, the taxes become "uncapped". The property is re-accessed at the new purchase price and a new SEV (state equalized value) is established. Generally, this new SEV also is the new taxable value. Future taxes will be established in accordance with Proposal A, which was approved on a statewide ballot in 1994. Proposal A limited the yearly property tax increase to be equal to the lesser of the general price level (Inflation Rate Multiplier) or 5%. Further, the rate will be determined on whether the property is a primary residence( homestead) or additional residence (non-homestead). A handy site to determine what potential taxes might be can be found through the State of Michigan Property Tax Estimator
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