Property Taxes Explained in Genesee County

Property taxes are one of the most important — and often most confusing — parts of owning a home. Whether you’re buying your first house, moving within Genesee County, or preparing to sell, understanding how property taxes work can help you budget smarter and avoid surprises.

Let’s break it down in a simple, easy-to-understand way.

What Are Property Taxes?

Property taxes are annual taxes paid by property owners to help fund local services such as:

• Public schools

• Police and fire departments

• Road maintenance

• Libraries and parks

• Local government operations

In Genesee County, property taxes are collected by local municipalities and townships and are based on your home’s taxable value, not its purchase price alone.

How Property Taxes Are Calculated

1. Assessed Value (SEV)

Your home is assessed at 50% of its market value, known as the State Equalized Value (SEV).

Example:
If your home’s market value is $200,000, the SEV is approximately $100,000.

2. Taxable Value

This is the number your taxes are actually based on.

• For most homeowners, taxable value can only increase by the rate of inflation or 5% (whichever is lower)each year.

• This is why long-time homeowners often pay less in taxes than new buyers.

3. Millage Rate

Millage is the tax rate applied to your taxable value.

• One mill = $1 in taxes for every $1,000 of taxable value

• Millage rates vary by city, township, and school district

Example:
If your taxable value is $100,000 and the millage rate is 40 mills, your annual property tax would be about $4,000.

What Happens When You Buy a Home?

This is one of the most misunderstood parts of property taxes.

Taxable Value Resets

When a property is sold:

• The taxable value “uncaps” and resets to match the SEV

• Your taxes may increase significantly compared to the previous owner

This is why tax amounts shown on online listings can be misleading for buyers.

Homestead vs. Non-Homestead Taxes

Homestead (Primary Residence)

• Lower tax rate

• Applies when the home is your main residence

• Requires filing a Principal Residence Exemption (PRE)

Non-Homestead

• Higher tax rate

• Applies to rental properties, second homes, or vacant land

Filing the PRE after purchase is critical to avoid overpaying.

When Are Property Taxes Due?

In Genesee County, property taxes are typically billed:

• Summer Tax Bill – issued around July

• Winter Tax Bill – issued around December

Many homeowners pay these through an escrow account with their mortgage lender, but it’s still important to understand the timing and amounts.

How Property Taxes Affect Buyers & Sellers

For Buyers

• Taxes may be higher than expected after purchase

• Always estimate taxes based on your purchase price, not the current bill

• A lender or Realtor can help provide a more accurate estimate

For Sellers

• Taxes are prorated at closing

• You pay your portion up to the day of closing

• Any prepaid taxes are credited back to you

Can You Appeal Your Property Taxes?

Yes. If you believe your assessed value is too high:

• You can appeal through the March Board of Review

• Provide recent sales data or evidence of condition issues

• Deadlines are strict, so acting early is important

Why Working With a Local Expert Matters

Property taxes in Genesee County vary widely by:

• City vs. township

• School district

• Homestead status

A local real estate professional can:

• Estimate post-purchase taxes

• Explain township differences

• Help you avoid surprises after closing

Final Thoughts

Understanding property taxes puts you in control as a homeowner or buyer. While the system may seem complicated at first, knowing how taxable value, millage rates, and uncapping work can save you thousands over time.

If you’re buying, selling, or just curious about what your property taxes might look like, getting local guidance makes all the difference.

Call or text me anytime at (989) 213-8163 for more information.

Shawn Rowden

RE/MAX Platinum

Associate Broker

(989) 213-8163

Shawn@Rowdenhomes.com