FREQUENTLY ASKED QUESTIONS
Q.
What is Taxable Value?
The Taxable Value is the lower of the State Equalized Value or the capped
value. The taxable value is then multiplied by the millage rate to produce
the amount of tax dollars. The taxable value was created upon the passage
of Proposal A, by the electorate in 1994.
Q.
What is State Equalized Value (SEV)?
The State Equalized Value is the result of the county equalized value
being subject to review by the Michigan State Tax Commission. The Tax
Commission may add to, subtract from, or approve the county equalized
value as submitted. Upon their action, it becomes the State Equalized
Value.
Q.
What is the Assessed Value?
The assessed value is the estimate of one-half of fair market value,
which is calculated by the local unit of government's assessing department.
The Michigan State Constitution requires the assessed value be set at
this level.
Q.
What is the County Equalized Value?
The assessed value as placed by the local assessing department, is reviewed
by the county equalization department. The equalization department may
add to, subtract from, or approve it as submitted. Upon their action,
it becomes the county equalized value.
Q.
Am I allowed to view my appraisal records?
YES! Most department records are considered public record, and are open
for inspection during normal business hours.
Q.
How do I get an appointment with the Board of Review?
You may telephone the Township Assessing Department to make an appointment.
In order to make a personal appearance before the board, you must first
make an appointment. If you wish to lodge an appeal by mail, your letter
of appeal must be postmarked no later than the Tuesday following the
second Monday in March.
Q.
What if I am not satisfied with the Board of Review decision on my appeal?
You have the right to file an appeal with the Michigan Tax Tribunal.
This appeal must be filed with the Tribunal on or before June 30th of
the current year, using the following address: Michigan Tax Tribunal
1033 S. Washington
P.O. Box 30232
Lansing, MI., 48909
Telephone Number: 517-334-6521
Q.
What is the Capped Value?
The taxable value can increase from year to year by 5.0% or the amount
of the consumer price index, whichever is less. Additions or losses
to the property are also taken into consideration. The formula is the
previous taxable value, minus losses, x 1.05 % or the consumer price
index, whichever is less, plus any additions = Capped Value
Q.
What if I am unhappy with the assessed value or taxable value on my
property, what can I do about it?
The first thing you should do, is talk to your local Assessor about
the valuation on your parcel. Check the appraisal records to make sure
all components of the property are correct. If you wish to proceed at
this point, you may lodge an appeal with your local March Board of Review.
The Board of Review is set up under the Michigan General Property Tax
Law. The Board consists of three, six or nine members, appointed by
the Township Supervisor, and approved at public meeting by the Board
of Trustees. The Board of Review will hear your appeal, and will make
a decision using their best judgement.
Q.
What if I'm out of town during the March Board of Review, how can I
lodge an appeal?
You may send a person to represent you, or as provided by resolution
of the Board of Trustees, you may file an appeal to the Board of Review
by letter. Please include the reason for appeal, your parcel number
and telephone number. The Board of Review will conduct an appeal review
for you, and notify you of their decision by first class mail.
Q.
When are the assessed values for each parcel determined?
Known as tax day throughout the state, December 31 is the date used,
taking into consideration the status of the property and the economic
conditions of the area.
Q.
What authority does the Township have in order to place a value on my
property for property tax purposes?
This
is a mandate of Public Act 206 of 1893 as amended, also known as the
Michigan General Property Tax Law.
Homestead
& Qualified Agricultural Property
Property owners may declare their principal residence as a homestead
and exempt the property from 18 mills of school operating tax. In order
to qualify as a homestead property, the property must be occupied as
a homestead by May 1 of the first year claimed. Partial homestead exemptions
are also available for multi-family dwellings. The 18 mill school operating
tax exemption also extends to agricultural classed property. Non-agricultural
classed property devoted primarily to agricultural uses may also be
eligible for the exemption. Please contact the assessors office for
additional information regarding homestead and qualified agricultural
exemptions.
Property
Transfer
In the year following a sale or
transfer of ownership of real estate, the transferred property's state
equalized value becomes relevant. When a transfer of ownership occurs,
statutes require the removing of the value cap and the adjustment of
the taxable value to that of the following year's state equalized value.
This means that the taxable value will equal the state equalized value
in the year following the transfer of ownership. It is important to
note that the assessor does not utilize 50% of the property's selling
price as the new SEV. This is the most common misconception regarding
the uncapping of taxable values. The following year's SEV is determined
by the same method as if the property had not transferred.
|
