Michigan Specific
      Back to home
      1. Key Realty Knowledge Base
      2. National & State Laws
      3. Michigan Specific

      Michigan Property Taxes and Prorations

      Michigan State Tax Property Classifications - PDF Download

      TAX PRORATIONS

      Using 4/12/2010 as example closing date

      ADVANCE/DUE DATE BASIS

      • Credit Seller/Charge Buyer
      • Dates are from Closing Date to Next Due Date
        • Summer from 4/12/2010 to 07/10/2010
        • Winter from 4/12/2010 to 12/01/2010

      ARREARS/DUE DATE BASIS

      • Credit Buyer/Charge Seller
      • Dates are from Last Due Date to Closing Date
        • Summer from 07/01/2009 to 04/12/2010
        • Winter from 12/01/2009 to  04/12/2010

      __________________________________________________________________

      CALENDAR YEAR BASIS

      If closed between 1/1 and 6/30 prorate as:

      (Meaning transaction is closing prior to any taxes for current year becoming due)

      • Charge Seller/Credit Buyer
      • Dates are from 01/01/2010 to 04/12/2010 (Closing Date)
        • This is for both Summer and Winter taxes

       

      If closed between 7/1 and 11/30 prorate as:

      (Meaning transaction is closing after Summer Tax becomes due but before Winter Tax becomes due)

      Summer:

      • Charge Buyer/Credit Seller
      • Dates are from 9/12/2010 (Closing Date) to 12/31/2010

       

      Winter:

      • Charge Seller/Credit Buyer
      • Dates are from 01/01/2010 to 09/12/2010 (Closing Date)

       

      If closed between 12/1 and 12/31 prorate as:

      (Meaning transaction is closing after both Summer and Winter Taxes have become due)

      • Charge Buyer/Credit Seller
      • Dates are to be from 12/03/2010 (Closing Date) to  12/31/2010
        • This is for both Summer and Winter Taxes

      __________________________________________________________________

      Advance/Calendar Basis

      • Charge Buyer/Credit Seller
      • Dates are to be Closing Date to 12/31/2010
        • Example 4/12/2010 to 12/31/2010
        • This is for both Summer and Winter Taxes

      Arrears/Calendar Basis

      • Charge Seller/Credit Buyer
      • Dates are to be 1/1/2010 to 04/12/2010
        • Example 1/1/2010 to 04/12/2010 
        • This is for both Summer and Winter Taxes

      __________________________________________________________________

      PLEASE KEEP IN MIND THAT SOME CITIES SUCH AS WYANDOTTE AND MONROE HAVE SUMMER TAX DUE DATE THAT IS NOT STANDARD AND PRORATIONS SHOULD REFLECT THE DUE DATE ACCORDING TO MUNICIPALITY