Useful Information (FAQ)

For a “crash course” summarizing the basic facts regarding property taxation in the State of Michigan please review the following two brochures:

“A guide to your 2024 property taxes and Proposal A”

“Understanding Your Assessment Notice”

FREQUENTLY ASKED QUESTIONS

HOW ARE ASSESSED VALUES CALCULATED?

Assessed values are calculated pursuant to State Tax Commission standards and Michigan State Law.  A mass appraisal technique is used to find the current cost to replicate your house and then depreciates that cost based on its age.  It is then adjusted to market value by comparing the depreciated cost of homes that have sold in your area to their sales price. The township uses a 24-month sales study to adjust neighborhoods so that assessed values are at 50% of market value.

WHY IS MY NEIGHBOR PAYING LOWER TAXES THAN ME?

In 1994 Michigan voters approved Proposal A, which established taxable value as the basis for the calculation of property taxes.  Since Proposal A passed, you can no longer compare your property taxes with your neighbor’s.  A property’s taxable value is the basis for calculating taxes on a property.  Increases in taxable value are limited to the percentage rate of inflation or 5%, whichever is less, and considers the physical losses or additions to the property.

The limit on taxable value does not apply to property in the year following a transfer of ownership. The taxable value will be equal to the assessed value the year following a transfer of ownership.

WHY ISN’T MY NEW ASSESSED VALUE 50% OF MY PURCHASE PRICE?

The typical assessed value is required by law to be established at 50% of true cash value. The State Constitution requires the assessed value to be uniform with the assessments of other similar properties.  "Following sales" is described in the assessor's manual as the practice of ignoring the assessment of properties which have not recently been sold while making significant changes to the assessments of properties which have been sold. Therefore, the purchase price is no longer the presumptive true cash value.

WHY IS A NOTICE OF ASSESSMENT IMPORTANT AND HOW DO I UNDERSTAND IT? 

Annually, in February an Assessment Change Notice is sent to all property owners. This notice advises owners of the proposed changes in your property's values, current classification, exemption and transfer status along with your appeal rights. This document should be annually reviewed by owners. 

Please see the example below titled "Understanding Your Assessment Notice" under Supporting Documents.