Property tax, School tax, Homestead,etc

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February-20-10, 08:36 PM
littlebuddy

Property tax, School tax, Homestead,etc

I have some questions for you guys. What is Homestead exemption? Does it work with second homes? Does everyone qualify for Homestead, seems some of my friends pay a lot of property tax. How does the state pay the 7300 a year per student? How much are school districts allowed to charge you over this amount? I have a small place up north worth about 1/10 of my place down here, yet I pay way more in taxes up there. The SEV even went up this year, even though it is not liveable yet up there and even when it is it will not be worth half of what the SEV says it is. Is it hard to have your property tax lowered? Even though I did lots of big imporvments on my place down here this past year they still lowered the SEV. I really have trouble understanding all of this. Thanks for taking the time to answer, it means alot. I always just payed my taxes and never worried much about it till the last couple of years when this tax stuff started getting out of control it seems.
February-20-10, 09:58 PM
Hermod

Quote:

Originally Posted by littlebuddy

I have some questions for you guys. What is Homestead exemption? Does it work with second homes? Does everyone qualify for Homestead, seems some of my friends pay a lot of property tax. How does the state pay the 7300 a year per student? How much are school districts allowed to charge you over this amount? I have a small place up north worth about 1/10 of my place down here, yet I pay way more in taxes up there. The SEV even went up this year, even though it is not liveable yet up there and even when it is it will not be worth half of what the SEV says it is. Is it hard to have your property tax lowered? Even though I did lots of big imporvments on my place down here this past year they still lowered the SEV. I really have trouble understanding all of this. Thanks for taking the time to answer, it means alot. I always just payed my taxes and never worried much about it till the last couple of years when this tax stuff started getting out of control it seems.

In most states, you can only "homestead" your primary residence. You cannot homestead a second home, a home you are renting, or a home that you inherited [[unless you are living in it).
February-20-10, 11:04 PM
gibran

in some cases I think it gives addition protection for your primary home....
February-21-10, 10:53 AM
Mikeg

You may claim an exemption from paying the full school property tax millage on your principal residence. Read the details here:

Michigan Homestead Property Tax Exemption

Once you file the affidavit to claim the homestead exemption, your school taxes will be billed at the lower homestead rate. You cannot claim a second property as your principal residence - question/answer 2 on page 3 at the link tells you the criteria the state uses to determine which one is your principal residence. In 1994, Michigan voters approved Proposal A, which increased the sales tax from 4 to 6% so that homestead property school taxes could be reduced. The state makes up the difference to the schools districts through the foundation allowance, which varies with each district but is in the range of the $7,300/pupil you mentioned.

If your income is low enough compared to the total school, city and county property taxes you pay on your principal residence, you might be eligible for the Michigan Homestead Property Tax Credit which you can submit annually as part of your state income tax filing.

You can appeal your property assessment valuation by requesting an appointment with your community's Board of Review, which generally meets for several days each March. Do your homework and if you can successfully prove that your assessment is too high compared to those of comparable properties in your neighborhood, the Board can grant you a one-year reduction in your assessed valuation.