In purchasing homes, taxes are essential figures buyers like yourself should take into account. As a future property owner, you must gather information on local taxes of counties and cities. Property tax rates are where the local government gets funding for local projects which can be a trivial expense or a financial struggle for homeowners. It is especially crucial in this case, as the state of Michigan has some of the highest property tax rates in the country. Michigan or the Great Lake State’s average effective property tax rate is 1.64%, which is a lot more than the national average of only 1.08%.

Despite the high property tax rate, Michigan homeowners are protected by the constitution of the state from a significant increase in their property taxes. The general sales tax rate of Michigan state is 6%. Fortunately for Michigan residents, the taxable value of properties within the state is only allowed to rise by no more than 5% from one year to the next. The city of Livonia, Michigan, does not enforce a city sales tax for its residents’ properties. For Michigan homeowners, this means that taxes remain relatively steady despite the surging home values.

In the city of Michigan, two different numbers reflect on your home’s value on the property’s tax bill. The first value home buyers should take into account is the assessed value. Michigan property’s assessed value is equal to 50% of the market value. The assessor determines the assessed value by factors like size, features, and compared prices of other recently sold houses with the same features.

The second number significant in purchasing properties is the taxable value. The taxable value of your new home is equal to the assessed value. Upon purchase, however, the taxable value does not necessarily equal the amount of assessed value as Michigan limits the growth of taxable value to only 5% or the level of inflation, or whichever is lower. But if homeowners choose to upgrade the property’s features, these may add more value to the property.

Livonia Taxes

Michigan Tax Rates

Mill rates indicate tax rates in Michigan and will apply to your property’s taxable value. One mill is equivalent to $1 of tax for every $1,000 taxable value. The state government imposes a statewide tax amounting to six mills in addition to the rates set by the local government tax authorities like school districts and city governments. Homeowners who are principal residents of Michigan are eligible for the Principal Residence Exemption which exempts the home or property from the first 18 mills in school taxes. Rates may vary according to whether properties serve as a principal residence of the homeowners.

Madonna Estates Homes for Sale
Madonna Estates Homes for Sale

Livonia Tax Process

The City of Livonia Tax Assessor is the local official who is responsible for assessing the taxable value of all properties within the City of Livonia and may establish the amount of tax due on that property based on the fair market value appraisal. The City of Livonia assessor’s office can help you with many of your property tax-related issues, including property tax appraisals, property renovations, and re-appraisals, property tax payment, homestead exemptions, and even appeals for property tax rates.

Livonia, MI Property Tax

Tax Appraisals

Tax appraisals are being done annually by the Tax Assessor of the City of Livonia. Assessors appraise the taxable value of each property according to his jurisdiction. Appraising properties are according to the features and enhancements of the property. From there, assessors review the fair market value of comparable properties within the same or close by neighborhoods. If you wish to request for a copy of your property’s most recent appraisal, you may visit the assessor’s office for verification.

Property Renovations and Re-Appraisals

If your property has undergone renovation like adding an extension in living spaces or bedrooms, the assessor of the Livonia city re-appraises your home for the value of new additions to reflect on the selling price. Either homeowners or contractors like yourself may report property upgrades to the Assessor’s Office. If, however, some renovations are unreported, the Assessor can identify new renovations during on-site visits of the property. Assessors also take into account the significant damages during re-appraisal.

Homestead Exemptions

Livonia residents are allowed to apply for a homestead exemption in the city. A homestead exemption is a legal provision that aids in protecting property from creditors upon the death of the homeowner spouse or during a declaration of bankruptcy. Property owners can also benefit from a homestead exemption by providing surviving spouses with ongoing property tax relief. This relief from obligation can also provide surviving spouses, which homeowners can do good on a graduated scale or the homes with much lowered assessed values that benefit property owners the most.

The office of the Tax Assessor of Livonia can provide you with an application form for the City of Livonia homestead exemption. Once the application is approved, the homestead exemption provides a modest property tax break for homes and properties that are as functional with the primary residence of their owners. Additional exemptions for farmlands, green spaces, veterans, and other properties may be applied.

Homestead Exemptions Livonia, MI
Homestead Exemptions Livonia, MI

Property Tax Appeals

In the event of an unfair over-assessment, the City of Livonia Tax Assessor can provide a tax appeal form you may apply. Any person or homeowner is allowed to file for an appeal. Once the appeal for a re-assessment is accepted, your property valuation and property taxes are adjusted accordingly.

Livonia City

Effective property tax rate: 1.5%
Per capita property taxs: $1,382.10

Clarenceville School
Total Millage for Principal Residence
Total Millage Non-Homestead

Livonia Public School
Total Millage for Principal Residence
Total Millage Non-Homestead

Livonia is a great city that offers a range of properties with spectacular amenities. If you are interested in moving to Livonia, Michigan, you can reach out through email for property assistance.