FAQs

 

How can my Taxable Value go up when my Assessed Value went down?

With the passage of Proposal A of 1994, taxable value (the value you pay your property taxes on) was separated from your assessed value. Assessed value, also known as your State Equalized Value, must represent 50% of the property's True Cash Value. This number also represents amaximum limit of the taxable value. In the year following a transfer of ownership, the two must be equal. In any other year, your taxable value will be the lesser of the SEV or your capped value calculation. If you have owned your property through periods of rapid growth, it is possible for there to be a substantial gap between your SEV and your capped value calculation. In this instance, you will still see an increase in your Taxable Value, up to the point it reaches the limit of the SEV.

I just bought my home. Why isn't my SEV 1/2 my purchase price?

The SEV represents 50% of the property's True Cash Value. True Cash Value is a term defined by law, and is specifically NOT purchase price. Your sale may be affected by numerous variables that may influence the individual transaction, that have no bearing on the property itself. To minimize the effect of these variables, all sales within a neighborhood (similar characteristics) are reviewed together to determine a usual selling price based on standardized units of comparison.

I don't agree with my assessment. What can I do?

When dealing with a current assessment year (following calendar year after April) please come talk to us. We will be happy to review your property with you. When dealing with a roll that has been finalized by the assessing department (after you receive your change notice in February) your first step is to appeal to the March Board of Review. Our office will provide the forms, but it is up to you to present your case, even if you appeal in writing, so please support your claim. The Board of Review will notify you in writing with their decision. If you find their decision unsatisfactory, you may further appeal to the Michigan Tax Tribunal. Contact information for the MTT will be provided along with the Board of Review decision. IMPORTANT: For residential and agricultural properties, you may NOT appeal to the MTT on a valuation dispute unless you appeal to the March Board of Review first.

Home prices are falling by the thousands, why did my Assessed Value only go down a little?

For assessments, not all home prices are falling. Remember assessments are tied to assessed values, not asking prices. If someone is asking $150,000 and sells for $130,000, but the assessor has the property valued at $120,000 that sale will show as an increase on the sales study. If they are asking $130,000 and sell for $110,000 then that would show as a decrease.

What if both types of sales occur that impact the Assessed Value differently?

Sales studies are based on a rolling one or two year set of sales. It takes a year or two to reflect an actual decrease. If sales continue to come down for another year or two, assessments will decrease. When sales start rising, it will take a couple of years for assessments to increase.

My Taxable Value increased $1,000. Does that mean my taxes are going up $1,000 this year?

No it does not, a $1,000 equates to approximately $20.00 in tax increase for a principle residence and $40for a non-principle residence in Clare County

I just bought my house last year and the taxable value doubled, why?

Because of Proposal A which took effect in 1994, when a property transfers to a new owner the Taxable Value increases to the Assessed Value in the year following the sale and then is capped at the rate of inflation as long as you own the property.