Why are the amounts on my neighbor’s tax bill different than mine?

On March 15, 1994, Michigan voters approved the constitutional amendments known as Proposal “A”.

Prior to Proposal “A” property tax calculations were based on State Equalized Value (SEV).  Proposal “A” established “Taxable Value” as the basis for the calculation of property taxes.  Increases in Taxable Value (TV) are limited to the percent of change in the rate of inflation or 5%, whichever is less, as long as there were no losses or additions to the property.  The limit on TV does not apply to a property in the year following a transfer of ownership (sale).

Suppose your neighbor purchased their home March 20, 2016 and their 2016 State Equalized Value (SEV) was 75,000 and his Taxable Value was 55,000. Their July 2016 tax bill will be calculated based on the prior owners taxable value of 55,000 for 2016 only.  The year following the transfer, the TV becomes uncapped.  Based on sales of homes in your neighborhood, your neighbor’s new SEV for 2017 is 80,000. Because of Proposal “A” your neighbor’s home became uncapped for tax year 2017, which means their TV will be the same as their SEV for 2017.  Their July 2017 tax bill will be calculated using 80,000 TV instead of the prior year’s 55,000.

In other words since Proposal “A” passed, you can no longer compare property taxes with your neighbors.  You can compare SEV, but remember to compare apples to apples.  Items to compare would be square footage of the home, style, how many baths, is their basement finished, fireplace, garage, decks etc.

 

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1. What is the March Board of Review?
2. Should I appeal to the Board of Review?
3. Why are the amounts on my neighbor’s tax bill different than mine?
4. I live on a decreased or limited income, can I ask the Board of Review to lower my taxes?
5. Am I required to attend the March Board for a Commercial/Industrial Real Property?
6. Am I required to attend the March Board for Personal Property?
7. Who can schedule/attend a MBOR appointment?
8. How do I prepare for the Board of Review?
9. How do I find comparable sales to present as evidence to the Board of Review?
10. How do I find assessing information?
11. I found a discrepency on my record card, what should I do?
12. What can I expect at my Board of Review appointment?
13. When do I receive notification on the outcome of the Board’s decision?
14. Can I Appeal the March Board of Review's Decision?