For some, home ownership comes with a surprise price tag

A growing number of homeowners have been complaining to city officials about their property taxes going up. In a number of incidents, however, taxes increased because additions were added to houses, which will uncap the value of a house.

By Charles Sercombe
With the price of housing going up, up and up, guess what else goes up?
Property taxes.
And some homeowners are learning a harsh lesson: When you pay $150,000 to $250,000 or more for a home here, your property tax bill is going to go through the roof.
That lesson, however, appears to be lost on a number of folks who come to city council meetings pleading for help.
Also influencing property values is when homeowners construct an addition to their house. That adds value, said City Assessor Konrad Maziarz, and that means their property taxes go up.
For most homeowners, property taxes can go no more than 5 percent or the rate of inflation – whichever is less. That is the state law.
But as soon as you purchase a new house or add additions, the house value is uncapped, and you could be hit with a huge tax bill increase.
One resident said he added an extension to his house, and his tax bill went from $1,800 a year to $6,500. He said the city manager reduced that to $5,000, but that is “still a lot of money.”
Mayor Amer Ghalib said that he has talked with the city manager and city assessor to adjust the housing valuation process “to make it reasonable.”
But City Assessor Maziarz said that legally, there is only so much wiggle room. And if the city were to take no action, the county would then take over, and if the county declined, the state would step in.
Ghalib also noted that he talked with officials in Dearborn and Dearborn Heights, and that they are experiencing the same issue.
“You just don’t hear those complaints,” Ghalib said.
Posted April 14, 2024