Tax Free Living
Tax Free Living
If you are a homeowner in one of the Grand Rapids Renaissance Zones and you meet the eligibility requirements, then your Grand Rapids city income tax, your Michigan state income tax and your property taxes are waived.
Eligibility requirements include the following:
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timely filing of personal property returns and Renaissance Zone form
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timely filing and payment of any state and city income taxes
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timely filing and payment of state and city employee withholding taxes
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timely payment of any property taxes
There are several downtown Grand Rapids condos in these tax free zones and if you purchase a property in a Renaissance Zone, it has to be listed as your primary residence. There are different zones as well which begin to phase in taxes at different times. In 2009, taxes begin to phase in. You will start paying 25% of your taxes in 2009 and 25% the following year and so on.
If your property is in an ‘extended Renaissance Zone’, your property taxes don’t begin to phase in until 2015.
Example of Renaissance Zone Savings
Lets say you purchase a downtown condo in Grand Rapids and assuming the sale price of condo is $225,000 and your annual salary is $60,000. (plug in your own salary)
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Estimates for 2008
|
SAVINGS |
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Property Tax Savings @ 29.7621 millage rate For a $225,000 condo |
~$3350.00 |
|
City of Grand Rapids Income Tax Savings @ 1.3% Of $60,000 salary |
$780.00 |
|
State of Michigan Income Tax Savings @ 3.9% Of $60,000 salary |
$2340.00 |
|
TOTAL SAVINGS PER YEAR $$$ |
~$6470 |
(This is a ballpark figure for information only, I recommend consulting your tax professional).
3 Comments
This type of incentive makes a lot of sense. People do care about living where its cheaper. Great to know some of the details so we can make better decisoons when we purchase.
Thanks Eric. It is important to know as much about your purchase as possible. That is one of the great things about the internet. So much info is available, but you still need a knowledgeable agent to give you an honest appraisal on the various condos.
p.s. I sorted out the feed issue, it should be working now.
8 Trackbacks
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