Saturday, March 15, 2008

You've Got Mail

Did you receive a surprise in your mailbox recently saying your value has decreased, but your taxes have gone up? If you have, you're not alone. Countless numbers of residents in the Detroit Metro area are scratching their heads wondering what's up.

With all the news about declining property values in the area, how could this happen?

Prop A passed in 1994 limiting tax increases to the rate of inflation based on the taxable value (homeowners who used their property as their primary residence). It wasn't a problem when property values were continuing to rise, but starting in 2005 when values stalled to today when they are declining, it's a big problem for many homeowners.

For folks like us, who bought in 2004, both our SEV and Taxable Value declined $11,650 which should hopefully result in a decrease in taxes. But for homeowners who have owned their property since 1994, there is a big gap between the SEV (State Equalized Value--the 'value' the municipality perceives the value to be) and the Taxable Value (the amount your taxes are based on because it is your primary residence).

Papers like the HomeTown News and Detroit News have been warning about it since the first of the year. But now that assessment notices have been received, property owners are flooding tax review boards requesting reductions.

This morning's Detroit Free Press contained an excellent article including definititions, resources, and describes how to read your assessment notice.

For more information about the tax appeal process, check out

No comments: