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Archive for May, 2012

What Exactly Are Lakefront Taxes?

I’m in the middle of a home search for a buyer transferring to Oakland County Michigan. I came across a listing that states you can get lakefront home without the lakefront taxes. In reality it’s an off the water house with a separate parcel on the water with a dock, but that’s not the issue. The issue is- What the hell are lakefront taxes??!!

Taxes in Michigan are based on the taxable value. The taxable value is based on what the state equalized value (SEV) was at the time of purchase. The SEV is supposed to equal half of market value. There is NOT EXTRA TAX FOR BEING ON A LAKE!! Your assessment may be higher than if you live in the same house off the water. MAY be higher. The same house on 20 acres may be valued higher than if it were on the lake and taxed accordingly.

At times I have buyer clients comment about paying lake taxes. I understand when someone who doesn’t earn a living selling real estate has misconceptions about how homes are taxed. However, it is inexcusable when fellow “professionals” don’t know what they’re talking about and even go so far as to publish their ignorance for all to read.

Jump ahead a day. After writing what’s above I have spoken to a few Realtors who I respect ,and a couple of them thought there was a higher tax on the water. So I called Independence Township to verify. Got laughed at and told there is no special tax for living on a lake- just an assessment to reflect the value of living on the water.

For more about calculating your new property taxes when you purchase your home

How the current taxes can affect your buying power

Search the MLS

Jackie Hawley, Realtor
ReMax Encore, Clarkston

Cell: (248)736-6407

Jackie@JackieHawley.com

www.MiRelocation.com

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