Stuart:

Here in MI are taxes are based Ad Valorem which means "According to Value". However, the municipalties are not overly eage to re-assess the taxes as this means less tax revenue for them. Their cost to provide services remains the same (i.e. police, fire etc). I live in the Waterford area near the West Bloomfield border and I can tell you that my property taxes have gone down 3 times in the past 18 months. This reduction however is not equivalent to the reduction in my property value, but it is a start.

Unfortunately, we are at the mercy of the tax assessors and there is always the tax appeal process.

thanks for all the help everyone -

It just annoys me while doing my research - I was looking at houses in the $350k range, then I remembered to add in the taxes ($9k year = because they used to be $600k) - increasing my monthly payments by $750, so I lowered my standards.
Then I see that these $200k houses that used to sell for $350k still have the $6k tax bill on them. That's still $500 a month I have to send to the government instead of to my mortgage.

So basically, my max went from $400k down to $250k (since I will be paying the $400k taxes!)

I think sales of these greatly discounted houses would significantly increase if local governments got on board and taxed the properties according to what they are really worth, instead of the inflated prices people where paying 5 years ago!

Stuart,

I believe your best source of information would be the Assessors office for West Bloomfield twp. They would have 2009 information for the property, which may be lower. This department would also be able to answer your questions.

Their website is http://www.twp.west-bloomfield.mi.us/departments/assessing.cfm

The State of Michigan also provides information and a property tax estimator (2008 values) and some videos that may help answer your questions.

http://michigan.gov/taxes/0,1607,7-238-43535_43540---,00.html

Your agent may also be able to provide some information, but ultimately, you are correct in performing your own Due Diligence about this issue. My best opinion based on the limited information provided is that property taxes are set for 2009 because it's after the May 1st but you may still be able to appeal to the Michigan Tax Tribunal, so please ask when you contact West Bloomfield or go to the Tax Tribunal link provided on the Assessors Office website above.

Good luck in your search for information. Homes in West Bloomfield and surrounding cities can be found on Trulia or the website below by map.

Stuart,

There are some excellent links to information about Principle residence and homestead taxes, etc, on-line. Meanwhile, I have included a link to a web page that provided some information that I thought may answer your question fairly well.

http://www.gomestic.com/Homeowners/Understanding-Property-Ta…

Happy to assist you with any real estate questions you may have.

Kay Pearson, CRS
Associate Broker
Real Estate One - Max Broock
Clarkston, Michigan 48346
248-860-0366
KayPearson@maxbroock.com

Hi Stuart,

Your question is one of many buyers. Michigan's property tax law can be very confusing. One of the main factors is whether the home is taxed at a "homestead" rate or at a "non-homestead" rate. Many foreclosed properties are taxed as "non-homestead" because they are vacant and much higher (in some areas as much as 40% higher). A buyer of a previously non-homestead house can "claim" the homestead by May 1 provided it will be the primary residence. When a house is sold, the property taxes are based upon the "State Equalized Value" or SEV. Unfortunately, it is not based upon the new "sold" price. The SEV is established by the local tax assessor based upon the overall value of comparable homes in the taxing location. Of course, the new owner can appeal the assessed value at the appropriate time published by the local assessor (some time early in each year). In the example you cited, the $8k property tax may possibly be as a non-homestead. A realtor has access to public records which will identify whether a house is being taxed as homestead or non-homestead. Public records are also available at the local township/city office. I hope this helps.

Short answer. Taxes are based on ATV. SEV's are going down but they don't affect taxes unless they go below the ATV's. It's complicated. Contact me for a quick tutorial or at least an invitation to my company's annual tax seminar.

Hello Stuart,

It all depends on the Taxable Value that the city puts on it. I've seen a few foreclosed homes with a large amount of taxes accessed on it. You would have wait until the following year to get reaccessed and possibly qualify for a homestead tax credit. If you have anymore questions feel free to contact me. I hope I answered your question.

Best Regards,

Mike Stawizky
Keller Williams Realty
Commerce Market Center
(248) 980-4406