Metro Detroit, it’s that time of year — residents and business owners are receiving property tax notices of assessment and after four years of a battered real estate market, many suspect they're being overtaxed on inflated values or properties.
If you own a home or business you will receive a “Notice of Assessment," and the deadline to appeal and lower your tax bill is fast approaching. With a detailed and powerful property value analysis (PVA) to submit and refer to you will be in a strong position during your appeal.
The notice contains an assessment of your property's value, reflected in state equalized value (SEV). The SEV in Michigan is half of the current market value. Taxes are then calculated by multiplying the current “millage rate” of your jurisdiction by the taxable value to calculate the annual tax bill. Thus, when the market value of your property falls, the taxable value and ultimately your annual property tax bill should likewise fall. Unfortunately, this isn’t always the case.
Cash-strapped municipalities don't always accurately assess properties. In my opinion, many rates are come out at 30% higher than market value. The tax assessor's office works hard, but the system is flawed leading to improper assessments.
Luckily, state legislators offer you the right to appeal using documentation proving the current fair market value of your property. The most persuasive documentation is evidence of the recent sales that are most similar to your home, usually taking the form of a professionally-prepared PVA, which is the most convincing evidence of the current fair market value.
Even if during your appeal, the local board does not make reductions, having a PVA puts you in a strong position should you decide to appeal to the Michigan tax tribunal.
The costs of over-assessment can be in the hundreds or thousands of dollars. If you are pretty sure you are being over-taxed, filing an appeal is wise, and being prepared is essential. In this economy, the board knows their city needs extra money, and they will be hard-pressed to order a reduction in your taxes without documented evidence.
Armed with a PVA and guidance, you will be better prepared to obtain a fair assessment and save money.
Team Baydoun can help you in this process with a professional opinion of your property's market value, backed by facts and comparable sales statistics. If necessary, we can also file your appeal and represent you at the Michigan Tax Tribunal. Our professional service includes a detailed PVA addressed directly to the criteria used at the board of review and print-outs of the most accurate comparable, non-distressed sales and data in your area.
For a free consultation, contact Attorney Tarek M. Baydoun at Team Baydoun / ERA Dynasty today at 313.915.0702 or by e-mail at email@example.com. PVA's can be done in time for your tax appeal for only $99.