MARCH  2009   

From the desk of Steve Wickland

UNDERSTANDING YOUR TAX ASSESSMENT 

By now most property owners in and around the Ann Arbor area have received their new property assessment notices. And some may be shocked to see that they’ll be paying more next year for their property taxes. “How can that be?” you ask. Especially since property values are falling faster than that USAir jetliner did after it hit the flock of sea gulls. Well, I’m going to attempt to explain, in plain English, Michigan’s wacky and complicated property tax system.

It all started in 1995 with voter approved Proposal A. Using two separate statistics to calculate a property tax rate: the state equalized value (SEV) and a taxable value. The SEV should be 1/2 of what the home is worth in the current market. Taxable value is what the local government can tax against. When Proposal A passed, the two numbers were the same. But after that, Proposal A capped the annual increase in taxable value to 5% or the inflation rate, whichever was lower-even when the SEV was rising much faster. (Note: Cap comes off when property is sold!) In an up market, this provision protected homeowners from large tax increases each year. But in a down market, it has the opposite effect.

So how does this affect you? Well it depends where you happen to live and how long you’ve lived there. If you purchased in an area recently, where assessed values are dropping significantly - like York Township (-22.9%) you’re likely to see your taxes decrease, because when you bought your home the SEV and taxable value most likely had little or no difference. Now take a homeowner that’s been in their home several years - their SEV is probably quite a bit higher than the taxable value, so consequently, their taxes won’t go down and can even go up 4 to 5% even though their property value has decreased! Basically, for property taxes to go down, the SEV must drop below the current taxable value.

SAFTEY TIPS

All-purpose Cleanser: Mix 1/4 cup baking soda (or 2 teaspoons of Borax) with 1/2 cup white vinegar. The baking soda deodorizes, cleans and scours. It also softens hard water. The white vinegar cuts grease, stains and wax buildup and cleans mildew. 
   Note: This solution works great for water deposit stains. You can also use straight Borax instead of the baking soda and white vinegar. In addition to cleaning, scouring and deodorizing, Borax disinfects.

Bathroom Mold Cleanser: According to the U.S. Environmental Protection Agency, mold can literally destroy the very thing these spores are growing on once they connect with a wet or damp spot. Mold spores cause allergy-like symptoms, and may exacerbate asthma. To eradicate mold, mix one part hydrogen peroxide with two parts water in a spray bottle. Use the 3 percent hydrogen peroxide that is available for a few dollars at any drug store or supermarket. Spray the bathroom areas and leave to dry for an hour. Rinse the areas off.

Soap: Avoid using a soap containing phthalates, parabens, synthetics or petroleum distillates. Check the label. If you prefer a solid bar soap, go for a clear soap without perfumes.

 If you prefer liquid soap, most health food stores carry liquid Castille soaps made with organic oils and mentha arvensis (the plant from which mint oil is extracted). Adding two squirts of this soap to two gallons of hot water will provide ample cleansing power.