Each year by the end of February, property owners receive their “Notice of Assessment” in accordance with State law. The Notice of Assessment will show any changes in Taxable Value, Assessed Value and the State Equalized Value (SEV). It will also show the property classification as well as if the property had been transferred and the percentage of Principle Residence Exemption (Homestead). And it shows the approximate change in what you will be paying in taxes. How to read your notice of assessment.
What does this notice mean?
Based on the change in Taxable Value is an estimated amount based on last year’s millage rates.
What is Property Classification? Property is classified according to its primary use. If you feel that your property is misclassified, please contact the Assessing office at 248-887-3791 ext. 3 to appeal the classification to the Board of Review
Assessed Value/SEV and Taxable Value? Assessed Value is equal to 50% of the market value of your property. Taxable Value is the product of the previous year’s Taxable Value increased by the Consumers price Index (Inflation rate) unless there were physical changes to the property. The Taxable Value can never be higher that the Assessed/SEV. In the event of a transfer of ownership, the Taxable will usually be equal to the Assessed Value/SEV
Do you have a Principle Residence Exemption (Homestead)? You must own and occupy the property to qualify for the Principle Residence Exemption (Homestead).
Having a Homestead will exempt you from paying the school operating tax. You can only claim the Homestead on one home whether it is here in Michigan or in another state.
If you believe your values are incorrect, you may appeal to the March Board of Review. This is the only time you can appeal values. Your assessment notice will provide with the the steps to begin the Board of Review process.
The following are examples that may qualify for a Board of Review reduction:
If properties in your specific neighborhood (similar in size, style and age) recently sold on the open market for significantly less than double your assessed value.
You have a recent appraisal from a licensed appraiser showing that the value of your property is significantly lower. Mortgage appraisals are usually not acceptable.
Your property was recently purchased on the open market (not a “forced or distressed” sale) and the purchase price was significantly lower than your assessed market value.
Your property has been on the market with a realtor at a price lower than double the SEV. You must present a copy of the listing agreement.
Severe structural damage, fire damage, or incorrect property data, etc. An inspection of the property from the Assessor’s office would be needed to see if a reduction in your assessment is in relation to the damage or error.
The following are examples that would not warrant a reduction from the Board of Review:
Your property needs paint, carpet, new roof, windows, etc. These items fall under general maintenance.
Abandoned vehicles in the street, junk or numerous cars stored in neighbor’s yard, barking dogs.
If you are not satisfied with the decision made by the March Board of Review, you may file an appeal with the Michigan Tax Tribunal
www.michigan.gov/taxtrib