What is Assessed Value?
(AV) equals half of the usual selling price (also referred to as the "True Cash Value". The Michigan Constitution requires that Assessed Value shall not exceed 50% of the market value or true cash value of the property.
What is Taxable Value?
Taxable Value is used for the calculation of property taxes. It equals the lesser of the Assessed Value or the Capped Value.
What is "Uncapping"
The Taxable Value on a property is said to be "capped" if the property owner did not purchase it in the preceding year. By State Law, when a property is sold or otherwise transferred, the Taxable Value in the year following the transfer, will be made equal to the Assessed Value and thus is said to be "uncapped" for the year. After the uncapping, the Taxable Value is capped for future years until there is another change of ownership.
Why isn't my new assessment half of my purchase price?
The answer is that it is against the 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 half of the purchase price but the property assessment is determined by investigating the other sales in the vicinity of the property. All of the assessment in the vicinity of the property is set using a sales study.
Another reason may be that we simply do not have correct information on your property. For example, if the house was unlivable at the time of purchase, we may not know that. Also, check your record card. This can be done in 2 ways; one, you can check the information using our online property and tax information, or contact our office either in person or by phone.
When can I appeal my assessment?
By law, the only time you may appeal your assessment is at the March Board of Review. The dates and times are on your assessment notice and on our website. After you receive your Change of Assessment in February, you may contact the Assessor's office at 269-381-2360 to schedule an appointment, or you may send a letter of appeal, including the Michigan Department of Treasury Form L-4035, Petition to Board of Review, which you can get from our office.
What are grounds for an appeal?
An appeal is not a complaint about higher taxes. It is your opportunity to prove that your property's estimated market value is either inaccurate or unfair. You will be most successful when you can prove at least one of three things:
- Items on your record card are inaccurate
- You have evidence that similar properties have sold for less than the estimated market value of your property.
- The estimated market value of your property is accurate but inequitable because it is higher than the estimated value of similar properties.
What happens if I'm not happy with the decision of the March Board of Review?
State law provides the next level of appeal at the Michigan Tax Tribunal. A letter of appeal on residential property must be sent to the Tribunal (P.O. Box 30232, Lansing, MI 48909) by July 31st following an appeal to/at the March Board of Review.
