There appears to be a great uproar over the fact that while some State Equalized Values (SEV) are going down (to the surprise of no one), the taxable value on the same homes are going up.

            "An outrage" they claim.  "How can I possible pay higher taxes on my home when its value has decreased?"  Even someone as presumably intelligent as Mitch Albom could not understand this dilemma as I listened to a portion of an interview he did the middle of March.  Adding to that, he feels that the ever elusive "something" must be done about this great injustice.

            Let me get this straight.  Aren't these the same folks who reveled for all they were worth in the fact the $80,000.00 they paid for their bungalow had turned into $160,000.00 without them lifting a hand?  Everyone was enjoying the ride of the unrecognized gain.  Some got out, only to buy that bigger house they probably had no business buying in the first place.  The rest never paid attention that their taxable value never got close to catching up to their SEV. 

            Because their taxable value remained capped, their SEV was $160,000.00 and their taxable value remained artificially low at $120,000.00 or so.  Now their SEV is down to, perhaps $140,000.00 and their taxable value got increased pursuant to the statutes.  The latter is still not close to the former, but that doesn't seem to be the point.  At least it's not the point everyone, including the esteemed Mr. Albom, appear to be focused on.  Instead, the focus is on the increase in the tax. 

            Admittedly, with everything, including the price of tea in China, appearing to cost more, an increase in your property taxes is not the most welcome bit of news.  But your taxes would have likely gone up even if nothing had changed.  Even if your SEV had gone up or stayed the same; they would have gone up.  Go ahead.  Take a look at your taxes the past five years.  They went up.  Take a look at your SEV.  It may have crept down towards the taxable value, but the odds are it still didn't come close. 

            Everything is relative.  Your value goes up, your taxes go up, you complain, but not too long or too loudly.  When the gap narrows, let the screaming begin. 

            But before some politician gets the great idea to come up with that "something", let's at least understand the system.  And understand that no one will be complaining that their taxable value will not keep up with their SEV when the market recovers a couple years down the road.

Be well.

Jeff Fanto

Associate Broker

JTC Realty Group LLC

Livonia, Michigan