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State and Local Property Tax Information
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Let me provide you with an understanding of the State and Local Property Tax system. I was a local Treasurer for 12 years, so I have a good background. Please contact me with any additional questions you may have.
HOW TO COMPUTE:The State of Michigan computes property taxes on 50% of the market value of the property. Then, each Municipality has its own annual millage rate.
Annual taxes are computed by multiplying the current TAXABLE VALUE of the property, by the MILLAGE RATE.
EX: 100,000. x .034 (34 mills) = $3,400. in annual taxes.
COMPARING OUR LOCAL MUNICIPALITIES:
Most of Marquette's surrounding townships have a millage rate around 22 - 26 mills. Of the three major cities, many people are surprised to know that Marquette has the lowest rate at 34 mills, Negaunee next at 39 and Ishpeming at 43.
EX: If you were purchasing a home valued at 200,000., you could plan to be taxed on 100,000. If you were purchasing in the townships your bill would be around $2,500., and if you were in the cities your bill would be around $3,400., $3,900., or $4,300. respectively.
HOW TO "BALLPARK" what your taxes will be:
An easy way to ballpark taxes while you are shopping for a new home is to take 50% of your expected purchase price, and multiply that by the millage rate of the township/city you are shopping in. Note: Once you find a home you are interested in, your agent should contact the local assessor and obtain additional information in order to help you to estimate what your taxes will be.
WHEN ARE YOU BILLED:
Michigan municipalities split the annual tax bill into two billings, one in July and one in December. Michigan is moving toward just one bill to arrive in July.
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