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Posted on Wed, Mar 9, 2011 : 11:17 a.m.

Ann Arbor-area homeowners learn how to appeal property tax bills at town hall meeting

By James Dickson

A homeowner for more than 30 years, Steve Savoie had never appealed his property tax bill. That’s about to change.

Savoie and his wife, Judy, built a home in 1977 on North Maple Road in Scio Township. The home burned to the ground in September 2008 after an accident involving their hot tub. The Savoies decided to rebuild on the same patch of land.

"I went into the tax assessor and told him that I'd like to rebuild onsite, but that I didn't want to be taxed out of my home," Savoie said. "I was assured everything would be fine."

The new home is about 70 percent as large as the old one, and yet when the Savoies recently opened their property assessment they realized their tax bill is 47 percent more than it was in 2008.

Thumbnail image for Mark_Ouimet_headshot_2011.jpg

Mark Ouimet, R-Scio Township

"(The tax assessor) told me they consider this a new home and that we should've kept a wall or something from the old house," Savoie said. "I told them, 'I wish you would've put out the fire quickly enough so that I could have.'"

Steve and Judy were among the 100-plus Washtenaw County residents who attended a town hall meeting Tuesday at the Washtenaw Intermediate School District on how to effectively appeal property tax assessments.

"We're not taxed out of our home just yet," Savoie said, "but if this trend continues, who knows?"

The meeting was led by State Rep. Tom McMillin, R-Rochester Hills and hosted by State Rep. Mark Ouimet, R-Scio Township.

"Is it possible for my tax bill to go up as my property values are going down?" one slide in McMillin's presentation asked.

"Unfortunately, yes," the next slide answered. Physical changes to property and millage increases are common culprits. Another reason this can happen is a decline in property values that hasn't hit equilibrium with taxable value, McMillin said.

"When those numbers match, you should see some relief," McMillin said.

Homeowners can appeal to their local board of review, the municipal body that has the final, local say on property taxes. Decisions local boards make can be appealed to the Michigan Tax Tribunal in Lansing, which has an 18-month backlog, McMillin said.

Successful appeals come down to a few factors: Errors on the appraisal card, property defects not taken into account by the assessor, and the biggest one of all, "comparable sales that support a lower value." A homeowner whose home has a taxable value of $200,000 might have a winnable appeal if he can show that similar homes in his neighborhood are selling for significantly less.

McMillin suggested homeowners use Zillow.com to find comparable home sales in their area. One woman attending the meeting suggested homeowners work with a real estate agent to get extremely granular, similarly situated comparisons.

"If your home is, say, a two-bedroom, one-and-a-half bath with a Michigan basement, they have the tools where they can track homes extremely similar to it," she said.

A number of homeowners expressed dismay at their local tax assessors and boards of review, unelected officials who have a major impact on home finances.

Ouimet said he plans to meet with local elected officials about once a quarter. On the agenda for the next meeting, he said, is sharing feedback from the meeting Tuesday, especially in regard to some animosity aimed at local boards of review.

Ouimet will not appeal his property tax bill this year. "Whatever they say it is, I just pay it," he said. He counseled attendees that the best appeals are factual, rational appeals.

"Just because a neighbor is selling his home for $150,000," Ouimet said, "doesn't mean your taxable value shouldn't be $180,000."

Boards of review, he explained, can only go by “arm’s length” (non-distressed) home sales, not by list prices. Knowing which argument to use is crucial. Showing up angry with no numbers to support a lower tax bill will lead to disappointment, he said.

"It's important to make a factual and not an emotional appeal," Ouimet said. “Because facts, and not emotions, are what these decisions are based on. Don't go by what your neighbor said he sold his home for, get the real number and others in the neighborhood. Ultimately, your appeal will be granted or not based on the evidence."

Appeals to local boards must be scheduled in advance and appeal forms are provided upon request.

For more information on appealing local tax assessments, follow these links: • Ann Arbor • Ann Arbor Township • Augusta Township • Barton Hills • Bridgewater Township • Chelsea • Dexter • Freedom Township • Lima Township • Lodi Township • Lyndon Township • Manchester • Manchester Township • Milan • Northfield Township • Pittsfield Township • Salem Township • Saline • Saline Township • Scio Township • Sharon Township • Superior Township • Sylan Township • Webster Township • York Township • Ypsilanti • Ypsilanti Township James David Dickson can be reached at JamesDickson@AnnArbor.com.

Comments

gsorter

Wed, Mar 9, 2011 : 8:41 p.m.

This whole process is a dance, let's call it "The Michigan 3-step" with the deck stacked against the homeowner. I purchased a property last year at a bank auction that sold for 33% of 2 times the SEV, and a bit under it's listed price. I'm working with an assessor who tells me that the purchase or previously listed price is not really relevant to the local review boards. How is this possible? Here is how the dance goes: 1) SEV's don't bear any resemblance to purchase price 2) Owner appeals, the local review board says NO CHANGE to SEV, property was "distressed" (aren't they all in Michigan), or a "really good deal" 3)Then a lawyer needs to be hired to go to the State Tax Tribunal 2-3 years after the fact. Luckily for us, any judgment is RETROACTIVE, so stick with it if possible