Buying in a township? Watch for special assessments on top of your taxes

Here’s a cost that catches a lot of people buying in Michigan’s townships — especially the fast-growing ones like Macomb County’s northern townships. You may owe a “special assessment” on top of your regular property taxes. It works like this. A group of property owners gets a public improvement — a road paved, a sewer or water main run, street lights, sidewalks, or drains. The township or county road commission usually pays for it up front. Then it bills the benefiting property owners for their share. That share is a separate charge from your normal taxes. It’s typically spread out over several years (up to about ten for a road project). And it runs with the property. Buy a home where a special assessment is still being paid off, and you inherit the remaining payments.

The good news: these can’t just be sprung on you. They’re usually started by a petition from owners in the area, though a township can also start one on its own. There’s a public hearing where you can object, and you can appeal to the state Tax Tribunal. The practical move when you’re buying in a township: ask the treasurer or check the parcel for any active or pending special assessments before you close. That way the extra bill doesn’t surprise you. Clinton Township and Shelby Township, for example, both run special assessments for things like roads, sewers, and street lighting.