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Assessing

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1. How do I read my Assessment Notice?

Please click on our Assessment Notice FAQ for more information

2. Where can I find information about a piece of property?

Information can be found online by visiting Property Tax and Assessment Info.

3. What do the terms assessed value, state equalized value, and taxable value mean?

• Assessed Value: The assessor is constitutionally required to set the assessed value at 50% of the usual selling price.
• State Equalized Value: SEV is the assessed value that has been approved following County and State equalization. The County Board of Commissioners and the State Tax Commission must review local assessments and adjust (equalize) them if they are above or below the constitutional 50% level of assessment.
• Capped Value: Capped value adjusts year to year by 5% or the consumer price index (CPI), whichever is lower. Improvements to the property will also increase the capped value more than the rate of inflation. A sale or transfer of ownership will “uncap” the property so that the taxable value is equal to the assessed value.
• Taxable Value: Taxable value is the lesser of the capped and assessed value.

4. How does the assessor determine my assessed value?

To ensure properties are assessed uniformly and at 50% of market value, the assessor uses a two year sales study. The sales are organized by neighborhoods. A neighborhood can be a single subdivision or a grouping of subdivisions with similar characteristics. If the sales in a neighborhood increase or decrease then all of the properties will be affected by what the sales have indicated. This insures that all properties are assessed at 50% of market value as of tax day - December 31.

5. I just bought my property. Why isn’t my assessment exactly half of the sale price?

Michigan law defines true cash value as the usual selling price. The Michigan Legislature and the Michigan Supreme Court have clearly stated that the actual sales price of a property is not the controlling factor in determining true cash value and calculating the assessed value. The Department of Assessing analyzes several sales in each neighborhood to arrive at uniform and equitable assessments for all properties.

6. Why doesn’t my assessment appear to reflect current market conditions?

When you receive your notice of assessment, taxable value, and property classification at the end of February; the market may have changed since tax day (December 31), and may have changed since March 31 of the previous year, which marks the end of the sales study period. State law requires assessment to approximate 50% of market value. When market values are rising, assessments are typically less than 50% of the market value by the time assessment notices are mailed because of the change in market conditions that have occurred between the time of the sales study and when the notices are mailed.

7. How can my taxable value increase when my assessment stays the same or decreases?

Proposal A was intended to limit the increase in taxable value by the Consumer Price Index (excluding physical changes) until ownership of the property transferred. The taxable value is capped each year by the CPI or 5%, whichever is lower. Since implementation of Proposal A the CPI has not exceeded the 5% maximum. As long as the assessed value is higher than the taxable value changes to the taxable value by the CPI will occur. In the past, assessments have decreased yet taxable values increased until the point that the assessed value and the taxable value are equal. The taxable value cannot be higher than the assessed value.

8. What is a Principal Residence Exemption?

If you own and occupy a home you are entitled to a Principal Residence Exemption. This exempts you from a portion of school taxes. On the notice of assessment, taxable value, and classification that is mailed out annually at the end of February you should see 100%. You are entitled to one Principal Residence Exemption in or out of the State of Michigan.

9. What is personal property?

Personal property is the tangible assets of a business. Some examples include: office furniture, computers, machinery, and equipment. Personal property should not be confused with real property which is the land and building.

10. Where and when do I file a personal property statement?

Personal Property Forms are filed annually with the jurisdiction where the personal property was actually located on December 31st. They must be filed by February 20th each year. Affidavit for Small Business Tax Exemption must be filed by February 20th each year.

11. What if I don’t file a personal property statement?

If the personal property statement is not filed on or before February 20, the assessor is required to estimate the value of the personal property.

12. What type of information do I include on the personal property statement?

The total original installed costs for each item of personal property by the year of purchase should be reported.

13. What if some of my equipment is used equipment?

If an item was purchased used you must report the original cost of the item in the year it was purchased as new. Do not report the cost that you paid for the item as used. You may have to contact the seller to obtain the original cost information.

14. My accountant has fully expended some items of personal property. Do I report it?

If you have personal property that has been fully expended or depreciated for federal income tax or financial accounting purposes, the original cost in the year purchased must continue to be reported on your personal property statement.

15. What if I move or close my business during the year?

If your business move out of the township on any day following tax day (December 31) you are responsible for personal property taxes for the remainder of the year (both summer and winter tax collections). Personal property taxes will be due to the city or township where your business relocates in the following year. Please notify the Department of Assessing if you move or close so that accurate records can be maintained.

16. Can the information contained in the assessment record for my property be changed if I disagree with it?

The Assessor will review the facts on the property record card. Staff will fact check the card with the homeowner. If any discrepancies are found, a physical inspection might be needed, and a correction can be made at the July or December BOR.

17. How much will my taxes increase if I make repairs/renovations to my home

Normal repairs and maintenance will not increase the assessment on your home. There are several interior and exterior repairs that can be made to keep up the appearance of your home without increasing taxes if they are not part of a complete modernization. A good rule of thumb is to inquire about a permit before starting any building alteration or installation work. Check with the Assessing Department for a list of home repairs and improvements that can be made without increasing your taxes.

18. How is my property assessed if it is under construction

Unfinished buildings are estimated for that portion of the total value that is completed on December 31st.