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Are You Entitled to a Sizable Tax Refund on Your Southeast Michigan Home?

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Recently, a change in law went into effect that will impact a lot of people in Southeast Michigan. In fact, in the last few days, I was able to tell three different people that they have refunds owed to them in the amount of $2,000 and $3,000.

This law change affects anyone who has sold, or plans on selling, real property that is homesteaded in the last four years in Michigan. In late 2015, the governor signed a public act that changed what was a rather confusing exemption to a law. In Michigan, we pay taxes when real property changes hands to both the state and the county. In Southeast Michigan, it is typically paid by the seller.

To give you an idea of what kind of money we're talking about: on a $250,000 sales price, the amount paid is around $2,000; on a $500,000 sales price it's around $4,000, and so on. A further resource to seek out to get this refund is www.DoorToDreams.com/TaxRefund


A lot of people are owed a lot of money because of this law change. As I said before, in only the last few days I was able to inform three people that they were owed a refund between $2,000 and $3,000. If you've sold a homestead property recently, you want to take a look at the State Equalized Value (SEV) of the property. If it is lower in the year that you sold it than the year you acquired it, and the property was your primary residence, you could qualify for this refund.

If you're a client of ours and you have sold with us in the last four years, we will be contacting you to help you through the process. We look forward to giving you the good news that you're owed some money! Of course, if you need real estate assistance of any kind, please don't hesitate to reach out to us. We would love to hear from you!

What You Need to Know About Southeast Michigan Property Taxes

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We're in early January, and in the next couple weeks, your 2016 tax assessments will come in. Now is a great time to identify what to look for when you receive those documents.

For example, let's take a look at a summer and winter tax bill for a property here in Michigan. We pay property taxes twice a year, and each bill covers a 12 month period. If you look in the upper left-hand corner, you will see the taxable value of your property. In this case, that value is listed as $135,193.

On these bills, you can see that the summer tax bill was about $3,300, and the winter tax bill was about $1,400. This property happens to be homesteaded. If you have a vacation home, cottage, or rental, you will see school operating taxes on the summer tax bills. If you feel that should not be the case, contact me.
 


Now, if you add together the winter and summer bills, the total tax bill for the property is around $4,600. To cross reference that, go to my website, DoorToDreams.com. There will be a link that says MI Tax Property Estimator. From there, enter the taxable value of your home. If we enter the taxable value of this particular property, $135,193, the tax estimator comes up with $4,400 a year. This is a little lower than the $4,600 in taxes that are being paid on the property, but this estimator will give you a good idea of what your taxes will be.

If you're looking to buy a home, you can figure out what the taxes might be ahead of time. Let's say you're looking for a $300,000 home. The taxable value will be about half that, or $150,000. You can enter that information into my website to find out what your property taxes will be.

For current homeowners, when you receive your 2016 assessment, look at that taxable number. If you double the taxable number, that will be your home value. If you feel that your home is worth less than that, contact me and I can help you.

I know we covered a lot of information here today. If you have any questions, please do not hesitate to reach out to me. I would be happy to help you!