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Some Common questions and Feelings HOW
MUCH WILL THIS COST: If
you are getting your some or all of your homestead taxes refunded now,
any tax increase you experience may be offset by the state refund. Many
senior citizens qualify for a tax break called a “homestead”
tax credit. Since the
state of Michigan permits property taxes, it provides the refund.
Your claim is filed each year using a form 1040cr.
Even if you don’t have to file income taxes, you should look into
filing this form! If
you are a senior citizen currently qualified
for a state issued property tax credit that isn’t capped, probably
nothing. Any increase
will be refunded to you. If
you now receive the maximum refund permitted under the law you will need
to refer to the estimates posted here. More
detailed information. 1.
How much will this cost? The
answer changes depending upon several things. ·
Whether
or not you qualify for a state reimbursement of property taxes. ·
If
one or both tax caps are lifted. ·
If
administrators increase millage rates to the maximum or something less
than maximum. ·
How
much your property is valued at. ·
How
much your income is. All
calculations that follow are based upon the maximum increases permitted if
caps are lifted. It is
possible administrators will not ask for full funding.
If that were the case, these projections will be high and actual
increases will be lower than what is shown below. The
total tax burden also could increase if property values were to rise
quickly. Historically, that
has not been the case, but if for some reason Saginaw housing became a
“hot” market (prices inflate rapidly), then taxes could go up.
The chart below may be used to estimate changes between houses of
differing values. No tax increase:
(If you get a homestead tax credit
now, you probably will not have an increase) a.
Let us begin with a general rule:
If property taxes on your home (technically defined as a
“homestead” under Michigan laws) are more than 3.5 percent of
the total annual income of the owners of the homestead, you can get a
tax break. b.
That is, first determine the total of all monies received each year
by owners of a “homestead” and then multiply that amount by .035. Then
compare that product (answer) to the total annual property taxes on the
homestead. It the amount of
property taxes is larger than 3.5% of the total annual income of the
owners, the owners will get a tax break. There
is a cap on household income. If the owners have a current
household income greater than $82,650 they are not eligible for the
tax break. If a senior
citizen has an income of less than $6,000 per year the tax break kicks in
quicker. There
is also a cap on state credit. It
is limited to $1,200 per year. Tax increase will effect
you If
you have a household income of more than $82,650 or if your taxes do not
exceed 3.5 percent of your household income, then you can estimate the
annual increase with the following table.
Please note the caps apply to only city of Saginaw operating
millage rates. Total taxes
paid by any taxpayers may go up or down in any year without the city’s
rate changing at all. The
table below also includes an illustration for a property with a taxable
value of $1,000. This was
done so viewers could easily convert costs if their individual property
taxable values do not match any provided in the table.
For example, if a property owner had a home with a
taxable value of $14,700 they could simply multiply the increases shown in
the table below at the $1,000 taxable value level by 14.7.
Thus, the maximum increase projected if the Dollar Cap were to be
removed would be 14.7 x $2 or $29.40 per year.
The total anticipated tax increase if both caps were removed and
city administrators levied the maximum millage rate ($10) would be $64.68
per year (14.7 times $4.40). The
source for the table is the city of Saginaw
Fact Finding Committee Report of June 17, 2002.
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