What are my taxes going to be, after I purchase this Canton, Michigan home?
This is one of a few questions that I get asked over and over. So, I started to make a list of these often asked questions clients ask me often and am going to start blogging about these questions over the next few weeks. Today I am going to start with this question.
In Michigan we have a two tiered approach to calculation property taxes. If a homeowner is planning on occupying the home as their primary residence, the property will be Homesteaded or taxed at a lower rate from a property that is Non-Homesteaded. Homesteaded properties have a lower taxation rate and have limits on how quickly the property tax can increase (once the value of the home appreciates).
Many Bank Owned properties are non-homesteaded, because of course it is not their primary residence. However, once the property is purchased and occupied the property can be Homesteaded, which will eventually lead to lower property taxes. Also, I am finding that many homes values are inflated which can also be appealed with the possible outcome being a lower taxation value.
The Canton Township website has a nice tool (that many other local cities like Plymouth, Northville, Novi, and Livonia also has) that will answer the question, what will my taxes going to be by providing a Property Tax Calculator at: http://www.canton-mi.org/government/prop_calc.aspx