Discuss Detroit » Archives - Beginning January 2007 » How should I fight a high property tax assessment? « Previous Next »
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Eastsidechris
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Username: Eastsidechris

Post Number: 106
Registered: 12-2003
Posted on Monday, February 05, 2007 - 4:40 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I got my property tax assessment in the mail last week and my house's supposed value went up nearly $4,000, which means my taxes are also going to increase. To my understanding, a house's taxed value is pretty much half of its property value. I don't want to put my business out there completely, but let's just say that if I could sell my house right now (ha ha ha) for what the city SAYS it is worth, I'd move somewhere else in a heartbeat.

I know the city is taking appeals on these tax assessments. Can anyone recommend what would be the most effective way to win my appeal? So far, my wife suggests that we get a listing of what comparable houses have sold for in the area to show to the city tax assessors--and I can guarantee that they haven't gone for what the city believes they should go for.

Any help here is much appreciated.

P.S.--Rather shady that when I'm scheduled to get my tax break from the city this year, they manage to give my house what I believe to be an unrealistically high value assessment.
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Ndavies
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Username: Ndavies

Post Number: 2429
Registered: 10-2003
Posted on Monday, February 05, 2007 - 4:43 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

This was recently covered in this thread:
https://www.atdetroit.net/forum/mes sages/5/92618.html?1170439523
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Supersport
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Username: Supersport

Post Number: 11207
Registered: 10-2003
Posted on Monday, February 05, 2007 - 4:50 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Did your taxes increase more than the 1.037 rate of inflation?
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Eastsidechris
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Username: Eastsidechris

Post Number: 107
Registered: 12-2003
Posted on Tuesday, February 06, 2007 - 7:27 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Supersport, they definitely are going up more than 1.037. By the city's assessment, my house's value increased nearly *choke* 10% this past year. I wish!!!
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Buddyinrichmond
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Username: Buddyinrichmond

Post Number: 117
Registered: 02-2004
Posted on Tuesday, February 06, 2007 - 8:08 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Jesus Christ.

Ever see that pamphlet entitled "What Every Driver Must Know"?

It's the biggest purchase of your life. Educate yourself in preparation for it.
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Detroitplanner
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Username: Detroitplanner

Post Number: 946
Registered: 04-2006
Posted on Tuesday, February 06, 2007 - 9:35 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

No kidding Buddy, people spend more time picking out an MP3 player than they do trying to understand tax structures.

The assessment does not control your tax costs unless you are in the first couple years of the purchase. If you are, then you are screwed. If you bought a home at or under the market rate, and the other owner had it locked for several years; it will go up.

http://www.michigan.gov/docume nts/propa_3172_7.pdf
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Dougw
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Username: Dougw

Post Number: 1539
Registered: 11-2003
Posted on Wednesday, February 07, 2007 - 12:33 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

Did you buy your house in the last year or two?

If No, your taxes did not go up by more than 3.7%.

If Yes, you can contest your assessment by showing what you recently paid for your house. You might not get your assessment reduced with your first appeal at the city level, but if you appeal to the state level it will nearly always get reduced to be in line with the purchase price. This is assuming you paid fair market value for it (in other words you can show that it was on the open market for a little while at that price and you didn't buy it from a relative at a steep discount for example).
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Mackcreative
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Username: Mackcreative

Post Number: 25
Registered: 08-2006
Posted on Wednesday, February 07, 2007 - 9:02 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I'm going to appeal my tax assessment today. I'm bringing my purchase agreement/deed and property appraisal from November 2006 showing our property's worth at -$55,000 from the city assessment (+$35,000 for the year,) recent sale prices of homes in similar condition in my neighborhood, specs and estimates of necessary repairs, copies of my city permits, and pictures of the condition of the property. I'll let you all know how it goes...
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Supersport
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Username: Supersport

Post Number: 11215
Registered: 10-2003
Posted on Wednesday, February 07, 2007 - 9:27 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

quote:

Jesus Christ.

Ever see that pamphlet entitled "What Every Driver Must Know"?

It's the biggest purchase of your life. Educate yourself in preparation for it.



BuddyinRichmond obviously doesn't live here. There is no logical reasoning behind the taxes in Detroit. The assessed values fluctuate all over the map, with no set formula that makes sense as to how they come up with it. I've talked to people who bought houses recently whom still pay just a few hundred after assessment, I've talked to people who's places were assessed for 1/3 as opposed to 1/2, and I've talked to people who totally got hosed and had to appeal it.

BuddyinRichmond,

Perhaps taxes in your neck of the woods make sense, but here in Detroit, there is no formula for estimating your taxes. So how about we shut the fuck up and let others help this guy out, eh?
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Danny
Member
Username: Danny

Post Number: 5493
Registered: 02-2004
Posted on Wednesday, February 07, 2007 - 9:57 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

How to fight property tax assessment? YOU DON'T! The whole American tax system has been screwy for the last 200 years. So go with the flow.

How do the Republicans handle tax assessments? In a slap in wrist for the elites but not the poor and middle class.

How the Democrats handle tax assessments? In a slap in wrist for the poor and middle class but not the rich.

You can prove your case to the courts, but you rarely win the case. If your politicians called any new tax proposals to relieve their budget shortfall, go with the flow it pass soon enough. Otherwise move away.
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Buddyinrichmond
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Username: Buddyinrichmond

Post Number: 118
Registered: 02-2004
Posted on Wednesday, February 07, 2007 - 9:58 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

quote:

I got my property tax assessment in the mail last week and my house's supposed value went up nearly $4,000, which means my taxes are also going to increase.


This has nothing to do with "taxes are also going to increase". Get a copy and understanding of Prop A.
quote:

To my understanding, a house's taxed value is pretty much half of its property value.


Wrong. Again, go do some research. Detroityes is hardly an appropriate venue.

Supersport has a lot of trash to talk but himself probably can’t tell us the difference between SEV, TCV and taxable value. Anyone who doesn’t understand the differences in those items is unable to accurately read their tax bill. If you can’t understand your tax bill you are obviously ill prepared for homeownership. In Detroit, tax sales generally end up in two categories when it comes to the assessment. The first is those transfers who do not get captured and become uncapped. The second are those who do and get reassessed rather appropriately in a annual sales study as required by State law. Basically you have the lucky and the fair. Better yet, you have those “working the system” and the fair. I can’t believe Supersport is comfortable with those people diverting precious tax dollars for the City he loves. Think of the homeless that could be helped!

Mackcreative is a bit bent out of shape over his situation understandably. It is important to remember that the assessor only has amenity info and square footage info along with the sales price. At most they may have also done a drive by. If your roof is failing or the paint is peeling the assessor doesn’t care. Those are maintenance items. If the assessor hasn’t seen the inside then they have to assume everything is the same as what their property info-card says. The reality is that just as your SEV cannot be raised for beautifying your property it generally will not be lowered for it being ugly. The story changes if you add bathrooms, porches, garages or increase the living space.

Just because I am not in Detroit now doesn’t mean I don’t have at least 3.28 years of experience with “The D”.
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Danny
Member
Username: Danny

Post Number: 5495
Registered: 02-2004
Posted on Wednesday, February 07, 2007 - 10:03 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

And that's leads back to square one. Don't fight it, leave it, for the proposal is left there.
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Mackcreative
Member
Username: Mackcreative

Post Number: 26
Registered: 08-2006
Posted on Wednesday, February 07, 2007 - 10:05 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

For the sake of nit-picking, I am a not a "he." Thanks for all your help supersport.
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Croweblack
Member
Username: Croweblack

Post Number: 1
Registered: 02-2007
Posted on Wednesday, February 07, 2007 - 10:40 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

A very simple explanation of this is solved by a simple question--Have you paid more actual dollars out of your pocket from this year compared to last year?

A home with the same ownership can have an assessed value of $4,000.00 one year and $4,000,000.00 the next but it does not change how much actual out of pocket cost you pay in taxes. (thank god for prop A!) Except of course the small increase allowable under Prop A.

Now if you are planning on selling your home it might be a good idea to challenge the assessment because the buyer won't be whacked when the taxes get uncapped. But keep in mind that you can challenge the assessment every year whether it changes or not.
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Goose
Member
Username: Goose

Post Number: 31
Registered: 02-2005
Posted on Wednesday, February 07, 2007 - 11:10 am:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

if you purchased your home in the past 1-4 years and the SEV and/or taxable value was uncapped and raised to the purchase price than it is possible that you will be paying more than you should in property taxes, most home values have fallen from highs of the past 2-4 years, some in the range of 15% a year......
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Mackcreative
Member
Username: Mackcreative

Post Number: 27
Registered: 08-2006
Posted on Wednesday, February 07, 2007 - 4:50 pm:   Edit PostDelete Post   Move Post (Moderator/Admin Only)

I filed an appeal to my assessment today, I'd encourage anyone to do this. I went in with an inch of supporting documentation, but all they wanted was a two-line reason that I was making the appeal, and they will send an appraiser out to see the inside of the property (important in my case since the outside looks *ok* but inside has fire, water, roof damage, no electric, plumbing, heating, wall, or floor.)

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