In March of each year, property owners in Michigan receive Notices of Assessment and Taxable Value. How does a homeowner know whether the proposed property tax for their residential property is correct?
In order to promote the development of certain types of real estate or to rehabilitate old buildings and communities, Michigan provides property tax exemptions to eligible homeowners and businesses that can be worth thousands of dollars every year. The following is a list of common property tax exemptions in the state that apply to both commercial businesses and homeowners.
An estimated 60 percent of U.S. homes are overvalued for tax purposes, according to the National Taxpayers Union. Because property taxes are based primarily on the value of a home, it follows that most homeowners end up paying more than they should on their property taxes.
For purposes of property tax assessments, golf courses are “special use” properties, which are income-producing properties designed for a specific use. Special use properties like golf courses are more difficult to assess because they do not fit into traditional property categories.
For owners of rental property, a new Michigan bill could mean a lower property tax bill and a simplified method for calculating taxable value.
Recently, Governor Rick Snyder signed a bill that will provide a small tax break for Michigan rental owners.