First is the assessment process. This means that the amount taxed on a property must be assessed based on the value of the property including the improvements made to it. This is often based on the value of the property in regard to the state of the market at that time. To determine the value of a property, a local assessor will come to make estimates. Next is the taxable value calculation. This is basically a limit on how much the property tax can increase every year. Per the Headlee Amendment, it can only increase at the rate of inflation or 5% of the property–whichever is lower. The exception to this is if the property changes ownership, which will change the taxable potential to be the market value at that time.

Appealing assessments are extremely important when learning about property taxes in Michigan. It is your legal right to appeal an assessment of your property taxes to the Board of Review. You must present evidence such as a decline in the value of your property or a mistake in the assessment process. 

Next is exemptions and credits for your property taxes. According to the Michigan Constitution, there are exemptions of property taxes that can be provided to veterans, people with disabilities, or for a portion of your primary residence. Also, special assessments can be applied to different commercial properties, which are additional taxes required by the local government. This includes taxes for improved infrastructure, road repairs and more. In addition, if your property will directly benefit from an improvement, your property could be required to pay a special assessment. Often, the public is given hearings to express their concerns or support, as well as notifications to the property owners to make them aware and able to express their disagreements.

Finally, there are legal protections you have for your property regarding the taxes. You are given the right to fair assessments including the right to appeal. You are also required notice for special assessments. Overall, property taxes are required in Michigan and vary on the market value, inflation, condition of your home, special assessments, and exemptions. These should all be considered with the help of a lawyer who can help you through the process of paying and understanding your property tax law. 

For more information visit this website on Michigan Property Tax Laws: https://www.michigan.gov/taxes/property