Citizens Fighting Assesments

This article was in the CitPat today. We have heard more and more about this issue. Is it effecting you? Is it fair?

Chris Hines paid $64,900 in 2007 for his fixer-upper, a modest Vandercook Lake home he bought off the foreclosure market.

The Bagg Avenue house has an attached garage, but Hines describes it as a 1,040-square-foot "dirt crawl space" that needs about $8,000 worth of work.

That's why he was shocked when he opened his assessment notice last month to find his home is valued at $124,400 and his property taxes increased about $500.

"If I wanted to pay that much in taxes I would have bought a nicer home," Hines said. "I'm fighting it all the way if I have to."

Hines is one of hundreds of disgruntled homeowners in Jackson County who went to boards of review this month to appeal their property taxes. Most boards are wrapping up deliberations, and appointments are no longer available.

Many of those who appealed, including Hines, will have to wait weeks until a final determination is made and a notice is sent in the mail. If a homeowner still is unsatisfied with the result, an appeal can be made to the Michigan Tax Tribunal.

Local assessors say some protests this year stem from confusion surrounding Proposal A, which was passed by Michigan voters in 1994. It limits property tax increases to the rate of inflation or 5 percent, whichever is less. It was designed to prevent taxable values from growing as fast as property values.

But many homeowners this year are seeing their property taxes increase even though assessed values are sliding in the midst of a slumping housing market. This irregular occurrence prompted a flood of phone calls to assessors and many appointments for appeals.

But a clause in Proposal A makes Hines' case distinctive.

A property's assessed value is 50 percent of what an assessor has determined to be the market value of the property. Many factors, including improvements and the number of houses sold in the area, are used to determine this value.

Under Proposal A, the tax cap is lifted the year after a home is purchased and the taxable value rises to become the assessed value. The problem is, in Hines' opinion, his home isn't worth $124,400.

Seeking a reduction, Hines brought pictures of his home and neighboring homes to the Board of Review on Tuesday to help prove his case. He was one of about 55 homeowners appealing in person to the Summit Township panel last week. The board, along with many others in the county, also accepts written appeals.

Though many townships said they didn't see a noticeable increase in appeals this year, Leoni Township residents filled all 96 available appointments and the township was to extend its deadline to accept written appeals.

Because new homeowners typically see their taxes shoot up, the township encourages them to make review appointments.

"It's the property owners' time to be heard," said Cary Stiles, Leoni Township assessor. "We're in charge of over 10,000 parcels. Take your one piece of 10,000 and really look at it."

Stiles said the board provides appealing property owners with a copy of their neighborhood's sales study.

She said the board asks the homeowners to provide any information relative to their appeal, which can include sketches, photos or written descriptions. The board reviews the information and makes a determination at a later date.

"We think everyone should have a fair shot at appealing their taxes," she said. "And we want to answer their questions."

Let us know what you think.