[BUYING AND SELLING REAL ESTATE IN MICHIGAN]
264
Register of Deeds for the County where the property is located. XI. PROPERTY TAXES A. Real Estate Taxes 1. Real property is assessed for taxes based on its true cash value that is to be determined annually by the local assessing unit. The assessed value is to represent 50% of the true cash / fair market value. 2. Michigan has a “cap” on increases in a property’s taxable value that is tied to inflation. The taxable value stays low (no more than 5% increase annually) regardless of any increase in the fair market value of the property and is reset to equal assessed value anytime there is a non- exempt “transfer of ownership.” A transfer includes (with a few exceptions) the sale of stock or membership/partnership interests (not a deed) in the entity having title to the property. 3. Only businesses pay personal property taxes, and they are structured the same way and subject to the same “cap” as real property. There are many exemptions and certain value thresholds that apply to personal property, depending on the value and/or the type of personal property involved.
ILN Real Estate Group – Buying and Selling Real Estate Series
Made with FlippingBook Online newsletter