The Assessor is responsible for estimating the value of your property, which determines your assessed valuation. The Assessor does not determine your property taxes. Instead, the assessed valuation determines the overall share of taxes you pay. Because your assessment affects your property taxes, it is important that your assessed value be accurate and fair. It is also important that you understand how the value of your property is estimated and what can cause property values to change.

The Assessor estimates the value of your property typically by first examining and collecting information on the physical characteristics of the property. Physical characteristics can include, among others, the square footage of land and improvements, the number of bedrooms in a home, whether or not the improvements include a garage, the number of bathrooms, and the nature of amenities such as swimming pools and fireplaces.

A property’s value can change for many reasons. The most obvious is that the property changes: a bedroom, garage, or swimming pool is added, or part of the property is destroyed by flood or fire. The most frequent cause of a change in value is a change in the market value.

State Equalized Value (SEV): 50% of Market Value or True Cash Value, commonly referred to as your property assessment.

Capped Value (CV): the formula is: Previous year’s Taxable Value minus Losses (physical changes to the property) times the Consumer Price Index (CPI) or 5%; whichever is less, plus Additions (physical changes to the property), (TV-Losses x CPI (5%) + Additions = CV)

Taxable Value (TV) is the value upon which property taxes are based. TV is the Lesser of State Equalized Value (SEV) or Capped Value (CV). TV in the year following a transfer of ownership (sale, gift inheritance, etc.) is equal to the SEV.

State tax law MCL 211.27 states that the purchase price is no longer the presumptive True Case Value of a property. The assessment may be close to 50% of the purchase price but the property SEV is determined by investigating the other sales in the vicinity of the property. All of the SEVs in the vicinity of the property are set using that sales study.

Sale prices going down in the neighborhood will not be reflected immediately in your assessment. The State allows for a two year sales study. That study includes sales a much as 24 months old; those older sales produce a value that is at least 9 months behind the market.

By law, the only time you may appeal you assessment is at the March Board of Review. However, you may meet with the Assessor at any time during the year to discuss your assessment.

State law provides the next level of appeal at the Michigan Tax Tribunal. You are required to file a petition with the Michigan Tax Tribunal by July 31st following an appeal to/at the March Board of Review. Click here to access petition forms.

The homestead exemption is more correctly known as the Principal Residence Exemption (PRE). The qualifications are simple; you must own and occupy the home as your principal residence on or before June 1st. The exemption continues until the use of the home as your principal residence changes. When the change occurs, you must notify the Assessor’s Department in writing. Proposal A and state law does NOT allow for partial credit. As an example, even if you move into a non-homestead property on June 5th, the exemption does not begin until the following year. Recent legislation has allowed the granting of a second homestead in certain conditions. The “Conditional Rescission” is available when the previous homestead is not occupied or rented and is listed for sale. Please contact the Assessing Department if you think you qualify for the additional exemption.