Most property taxes went up this year despite lower assessments, though, for a select few, taxes actually went down.
As a result of Proposal A, many long-term property owners are the ones feeling the pinch this year.
Township Assessor John Attwell said most assessed values decreased, but as a result of the 1994 proposal, most taxable values continued to climb upward.
‘Proposal A was all predicated on values increasing,? Attwell explained. ‘It was not designed to help a long-term owner in a negative market.?
The assessed value of your home is not affected by Proposal A. The problem many homeowners face this year is even if the assessed value of a home is less than last year, property taxes can still go up, assuming the taxable value remains below the assessed value.
Attwell noted owners have gotten a break in the last 15 years, but that doesn’t mean they should be happy now.
Taxable values are ‘artificial,? according to Attwell, meaning they’re based on an inflation rate multiplier out of the township’s control. As a result, the 2.3-percent rate of inflation was applied to most local tax bills.
Still, Attwell said most people who challenged their taxes at the township’s Board of Review this month likely came away with lower assessed values.
That result, however, probably did not change most taxable values.
‘We’ve got a pretty good Board of Review,? Attwell said. ‘They’re very knowledgeable.?
Increased taxes were rivaled by foreclosures as the top issue for most residents appealing to the Board of Review.
Those unhappy with the results can appeal to the Michigan Tax Tribunal.
Commercial and industrial property owners have until May 31 to appeal, while residential property owners have until July 31.
Attwell said there were about 20 appeals from the township last year, and based on a similar Board of Review turnout in both 2007 and 2008, he would expect a comparable number this year.
For short-term owners, ones who have not seen their home’s assessed values climb over a prolonged period, Proposal A states taxable values cannot exceed assessed values, which might, in turn, result in a lower tax bill.
Attwell said there is no simple solution for these long-term owners, so there’s a chance this could be the first of many years township homeowners suffer. They can, however, figure out next year’s bill as early as this fall.
‘You can know in October what your tax will be in the next year, because the Interest Rate Multiplier is already set by the state of Michigan,? he said.
State Rep. Jim Marleau said that he’s co-sponsored legislation that could serve as a possible solution.
?(It) has been called a Homeowners Bill of Rights,? Marleau said. ‘If this becomes law, it will immediately stop increases in property taxes when properties values are decreasing.?