President's Message

Good news for all of you who did not fair well at the March Board of Reviews, help is on the way. House Republicans want to change state law and the constitution with amendments to Proposal A, a property tax cap enacted in 1994.

The proposal calls for additional protections for property owners including:

• Establishing an independent appraisal as proof of value, and placing the burden on government to prove otherwise if a disagreement arises.

• Basing property values on one year of sales rather than two (the common standard) if doing so will result in a lower tax assessment.

• Limiting the increase in taxable value that follows a home sale under Proposal A to soften the so-called pop-up tax.

On the other side of the aisle, House Democrats are working on a bill to give home buyers a property tax break, in hopes of stimulating home sales in Michigan.

The property tax bill would allow those who buy a home in the next 18 months to inherit the typically lower property tax assessment of the seller.

Under the Democratic plan, home buyers would keep the lower, capped tax assessment for as long as they own the homes they purchase during the 18-month period. Anyone who buys a home after the 18-months would pay the higher pop-up tax on the house.

House Speaker Andy Dillon, D-Redford Township, said he wants the tax break approved in the next few weeks. The tax break would be retroactive to March 1, he said.

Whether you are a Democrat or Republican I think we all can agree something needs to change and change quickly to get this state rolling again. I think both proposals are a good start in the right direction.

Remember you have until June 30^th to send in your appeal the Michigan State Tax Tribunal after that date you will have to wait until next year and try again.

Chris Yatooma, President

Real Estate Investors Association of Oakland

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