Wholesaler · Sterling Heights, MI · Member since 2014 · 335 posts · 105 votes
Hi everyone,
I'm looking to start purchasing some rental properties in the coming up months. The price hike between homestead and non-homestead taxes can be quite huge in some areas of Michigan. I'm running the numbers on some potential rentals and would like to know how to find out what the taxes will be city by city?
I'm assuming call the city? What department do I ask for and what information do I need?
Investor · Livonia, MI · Member since 2016 · 23 posts · 14 votes
10y
Homestead exemption reduces the overall rate by 18.000 mils across the board in Michigan.
Make sure you use the taxable value when calculating approximate taxes instead of the SEV. This is given on the county assessor websites for each property.
Another thing to consider about the taxable value in the near future after buying a property is a possible increase. If the property was last sold for a significantly lower amount, the county could raise the value that they tax. This has happened to me on one of my properties, luckily the increase was not that large.
Vendor · Kalamazoo, MI · Member since 2016 · 93 posts · 56 votes
10y
Emilio, I like to use a couple of sources. The first is the municipal website powered by BS&A Software. You can see current taxes including mills (along with A LOT of other relevant info) and you can also see the homestead exemption if there is one. This can be found here: https://is.bsasoftware.com/BSA.IS/Login.aspx?Retur...
The State of Michigan also has a property tax estimator website but it is usually a couple years behind as far as millage rates. Still, it is pretty accurate. It can be found here: https://treas-secure.state.mi.us/ptestimator/ptest...
Vendor · Kalamazoo, MI · Member since 2016 · 93 posts · 56 votes
10y
The first link I sent for BSA will have that information once you drill down into a property. Individual county websites may have that information also.
Investor · Livonia, MI · Member since 2016 · 23 posts · 14 votes
10y
Homestead exemption reduces the overall rate by 18.000 mils across the board in Michigan.
Make sure you use the taxable value when calculating approximate taxes instead of the SEV. This is given on the county assessor websites for each property.
Another thing to consider about the taxable value in the near future after buying a property is a possible increase. If the property was last sold for a significantly lower amount, the county could raise the value that they tax. This has happened to me on one of my properties, luckily the increase was not that large.
Homestead exemption reduces the overall rate by 18.000 mils across the board in Michigan.
Make sure you use the taxable value when calculating approximate taxes instead of the SEV. This is given on the county assessor websites for each property.
Another thing to consider about the taxable value in the near future after buying a property is a possible increase. If the property was last sold for a significantly lower amount, the county could raise the value that they tax. This has happened to me on one of my properties, luckily the increase was not that large.
If you are buying a property you should use the SEV to calculate the taxes since the Taxable Value will reset to the SEV at the sale.