Among the many costs of owning real estate are property taxes. These taxes, which are generally assessed in the summer and winter, serve to support our local communities, like schools, public safety and utilities, and roads, for example.

The taxable value of a property is used to calculate your property taxes. The annual growth in taxable value is capped at the rate of inflation or 5 percent, whichever is less. The State Equalized Value must still reflect 50 percent of the property’s true cash value and may increase, or decrease, by more than the rate of inflation or 5 percent in any tax year. It is important to note that your property taxes are no longer based on the State Equalized Value. Changes to your home’s assessed value will reduce your taxes only if it is an amount lower than the taxable value.

Reading and understanding property tax assessments can be confusing, and fortunately property owners have the chance to review their property taxes. While the assessors do their best and typically assess property taxes correctly, the government certainly isn’t perfect, and errors do occur.

That is why I offer a free guide to help property owners effectively appeal property tax assessments if they believe they are too high or otherwise incorrect. If you think your assessment is in error, follow my eight-step guide on how you may appeal to your local Board of Review and, if necessary, the Michigan Tax Tribunal.

As I mentioned, there are several steps to follow, and doing so isn’t necessarily easy, but it’s your money and if there is an error, you could save quite a bit. The good news is that appealing is free, and no attorney is necessary.

To download my free “How to Effectively Appeal Your Property Tax Assessment” guide, visit StateSenatorKimLaSata.com and click the Publications link under the Resources tab in the upper right corner of my website.