Specializing in Grosse Pointe, St. Clair Shores
Harrison and Chesterfield Twp, Harper Woods
In 1994 Michigan passed Proposal, "A" which capped the annual tax hike that could be levied on each homeowner, even if their house value increased. The cap is whichever number is the lower figure, the rate of inflation or 5 percent.
Since Proposal "A", every Michigan home has two values, the traditional assed value, pegged around half the market value, plus a number called the taxable value.
Why do real estate listings still quote a number for property tax? It is really what the current homeowner is paying not what you will be paying. Many the same for every homeowner in one city or township. The second part is the assessed value of your home. The assessed value is approximately half of the home's market value, e.g. If you purchased a home for $300,00, you would be assessed at approximately $150,000.
So using these two examples, to figure the tax, your taxes would be $150,000. x $31.4862 divided by $1,000. = $4,722.93 per year.