Expert answers from Michigan's trusted cash home buyers. Questions? Call (269) 389-9961 anytime.
Michigan property taxes are paid in arrears (summer taxes due July 31, winter taxes due February 14). At closing, taxes are prorated: the seller pays for the portion of the year they owned the property. The title company calculates this and adjusts credits/debits on the settlement statement.
The Michigan Principal Residence Exemption (PRE) exempts your primary residence from 18 mills of the local school tax — saving $1,000-$3,000+ annually on a typical Michigan home. When you sell, the PRE transfers to the new owner if they use it as their primary residence and file the necessary affidavit.
Michigan has 'uncapping' of property taxes upon sale. Michigan's assessment is capped at inflation + 5% per year while you own it — but when the property sells, the new owner's assessment uncaps to 50% of true cash value. This is the new owner's problem, not the seller's, but it may affect their willingness to pay your asking price.
Unpaid Michigan property taxes become delinquent April 1 of the year following assessment. After 3 years of delinquency, the property is subject to tax foreclosure by the county treasurer. Outstanding property tax liens appear in the title search and must be paid at or before closing.
Check with your county treasurer's office directly. Many Michigan counties have online tax search portals. The title company will also discover all outstanding taxes in their title search. For Wayne County (Detroit area), the Wayne County Treasurer website has comprehensive online records.
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