What is the difference between assessed value and taxable value?

The State of Michigan requires that properties be assessed at 50% of the true cash (or market) value of the property. True cash value is what your property would sell for in the open market.

Taxable value is determined by taking the prior year taxable value minus any losses (such as fire or demolition), multiplying by the current year CPI (Consumer Price Index), plus any additions (such as new construction). Since the passage of Proposal A in 1994, property taxes are calculated on taxable value. Prior to Proposal A, property taxes were calculated on assessed value.

What is a Principle Residence (formerly known as Homestead Exemption) Exemption?

You are eligible for a principle exemption if you own and occupy your property as your principle residence as of May 1st of any given year. The Principle Residence Exemption exempts you from paying 18 mills of school operating tax. You must file a Homeowner’s Principle Residence Exemption Affidavit to receive this exemption.

What is a Property Transfer Affidavit?

A Property Transfer Affidavit is required to be filed within 45 days of the transfer of ownership of property to notify the Assessor to uncap the taxable value in the year following a transfer. This uncapping is required by Proposal A, which was passed by the voters in 1994.

What does “uncap” mean?

Under Proposal A, a property is “uncapped” in the year following a transfer of ownership. This means that the taxable value for the year following a transfer will be the same as the assessed value for that year. This can result in a large increase in taxes for a new property owner in the first year of ownership. After that first year, the taxable value is again subject to the inflationary increase.

Why are my taxes higher than my neighbor’s?

Under Proposal A, you and your neighbor can live in identical houses and pay a different amount of taxes. If your neighbor has lived in his home for several years and you just purchased yours, you will pay more taxes than your neighbor due to the required uncapping of taxable value. However, the assessed valued should be the similar.

When will my new house be fully assessed?

All properties are assessed as of December 31st of each year. If your new house is not started as of December 31st, you will only be assessed for vacant land until the following December 31st. If your new house is partially completed as of December 31st, you will be assessed for the portion of the house that is complete. The remainder of the value will be added to the assessment the following December 31st. A house that is completed as of December 31st will be fully assessed.

How often is my property evaluated?

The General Property Tax Law requires all properties to be evaluated each year. This does not necessarily mean that a field inspection is made of each property each year. Other forms of evaluation include, but are not limited to: building permits, sales studies, and parcel splits and combinations.

How is my assessed value determined?

Land values are determined based on sales of vacant land that occur with Hartland Township. The building is measured and features are noted to determine a reproduction value using the State Assessors Manual which contains average construction costs for the State of Michigan. The resulting cost is then adjusted by a county multiplier which will adjust the State costs to Livingston County costs. This resulting value is further adjusted by an ECF (Economic Condition Factor), which will adjust the value to the Hartland Township Market. This final building value is added to the land value for a true cash (or market) value. 50% of true cash value is the assessed value.

How can I appeal my assessed value?

When you receive your Notice of Change of Assessment in late February, if you disagree with any of the information included, you may call my office and I will be happy to review your record with you. We may be able to resolve your concerns without making a formal appeal. An appeal can be made to the Board of Review, which meets every March to hear appeals of assessments. The dates and times of the meetings are printed on the Notice of change of Assessment that you receive in late February. The time frame for the Board to meet is set by the General Property Tax Act. Once the Board of Review has adjourned, the assessments are final until the following year. If you are not satisfied with the Board’s decision, you may appeal further to the Michigan Tax Tribunal. The information for doing so is also printed on the Notice of change of Assessment.

Please feel free to call 810-632-7498 if you have any questions or you can e-mail me at jheaslip@hartlandtwp.com. If you have specific questions regarding your property tax assessment, please contact the Assessor’s office.