Property Tax Calculation in Oakland co

[Joe Donlevy]

I am looking at buying a sfh rental in Oakland County and trying to calculate the proforma property taxea as an investor. 

If I use the calculator on the state website https://treas-secure.state.mi....

If the ourchase price is 150k and enter that as the sev and complete the remaining info it says annual property taxes are almost 12,000. Does that seem correct?

Makes it a nonstarter if so. 

[Scott M.]

In all honesty you are trying to foresee the future and the way that SE MI calculates taxes is not that straight forward.  Look at sales of homes in the area you are looking at for the past year and then look at what happened to the SEV in the year after the sale.  Did they raise to be equal to or close to half the sales prices?  In most cases you will find no.  Instead you generally find that areas are raised/lowered together in bulk based on the assessors whims.  Not saying on occasion you would find a standout but for the most part predicting future SEV is impossible.  Only way to really guess is in a growing or shrinking market to look at what has been happening in years past.  Meaning, if the whole area goes up 10% it is likely most SEV's will go up ~the same %.  Based on previous years increases, decreases you can go used your magic 8 ball from there. 

Personally I think that property tax estimator is garbage.  And they use 2019 data when you can get 2020 data here: 

Taxes - Millage Rates (michigan.gov)

and the 2021 Summer taxes are now out as well so for those cities you can look up the 2021 data to get you closer.

As others have said, I am a broker and if you are looking at a home give me a message and I am happy to run you through the math to get to an estimate of taxes.  Takes a few minutes and is not big deal, happy to help out.