A Detroit News investigation found that Detroit homeowners could have been taxed by more than $600 million. As a debt relief company, we meet with many Detroit residents struggling with large property tax debt. A majority of these people are facing tax foreclosure or other financial hardships as a result of their high tax bills.
After the Great Recession, housing values plummeted across the State. However, the tax bills in the City did not follow suit quickly enough. As a result, the residents were overtaxed significantly in the immediate years following the recession that they are still feeling the repercussions for into the 2020s.
The Detroit News provided a handy tool to determine if you were overtaxed. You simply plug in your property address and it will indicate the amount you should actually be paying.
If you were overtaxed or are struggling with tax debt, there are a few solutions you can try to lessen the burden.
Appeal your tax Bill
Once estimating the market value of your property, if it is at odds with the State Equalized Value on your tax bill, then you can appeal your tax bill at your City’s Assessor’s office at any time. Detroit has a specific website to guide you through the process.
Apply for a Poverty Tax Exemption
If you are below the poverty line for your household size, you may be able to eliminate the property tax owed by claiming an exemption. This does not contain fees assessed for solid waste and delinquent water bills. For example if you are a household of three and earn less than $23,036.00, you can eliminate your obligation.
Enter a Payment Plan with Wayne County
Recent years have provided more generous payment plans with the Wayne County Treasurer. The Treasurer has recently flooded television stations with commercials outlining the process. The Wayne County website provides outlines of the payment plans.
File a Chapter 13 Bankuptcy Case
In certain cases, its too late to enter into a payment agreement with the Treasurer or the terms are impossible to meet. A Chapter 13 Bankruptcy case will allow you to pay down the past due tax obligations over a three to five year repayment plan. If there is no equity in the property, you can pay even less than the taxes owed through the plan.
Our firm has a vast amount of experience working with property tax issues in Wayne County on both sides of the aisle. Please contact our office for a free consultation to find the best plan for you.