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Residential Property

1. Why are my taxes so high?

Q:   
i.    A: Your taxes could be high due to many different reasons.  Examples:  Transfer of ownership(uncapping), value-producing home improvement factors, increase in home sales in your area, verifying correct square footage, etc.b.    Q:

 

2. What is an uncapping?  

In accordance with the Michigan Constitution as amended by Proposal A of 1994, a transfer of ownership will cause the taxable value of the transferred property to uncap in the calendar year following the year of the transfer. Ultimately the taxable value becomes equivalent to the assessed value the year following the sale.

3. How do I appeal my assessment? 

An appeal can be made during the February Assessors Review Period for the first 3 weeks in February from the 1st to the 22nd.

 

4. Will my taxes increase if I add an addition to my house? If so, how much? 

An addition can increase the assessed value which may affect the taxable value.  An appraiser would have to conduct a field review to measure and gather information for a determination.

5. How are the property taxes calculated?  

Individual tax bills are calculated by taking the taxable value and multiplying it by the local mill’s rate.

6. What is Assessed Value? What is Taxable Value?  

The Michigan Constitution requires the property to be uniformly assessed at 50% (Assessed Value) of the usual selling price, also referred to as True Cash Value. Taxable Value is the value on which property taxes are calculated. 

7.  Why did my taxes increase?  

Your taxes could increase due to many different reasons.  Examples:  Transfer of ownership(uncapping), When this occurs, the taxable value generally equals the State Equalized Value (SEV) and transfer of ownership can significantly increase the taxable value, which increases the taxes. Taxable value is generally lower than the SEV or capped value, and the SEV is traditionally 50 percent of the market value, other reasons include value-producing home improvement factors or increases in home sales in your area, etc.

8. Can you give me a tax estimate?  

Your taxable value can be provided to you for you to multiply by the local mills rate.

9. If I didn't buy or sell my house/property or make any improvements last year, why did my taxes increase?

There are two components in calculating the tax bill amount - the taxable value and the millage rate. The taxable value increases in conjunction with the Consumer Price Index (CPI) and changes in the millage rates are determined by various referendums approved by the voters. Multiply the taxable value by the millage rate to estimate the tax bill amount.

 

10. My parents, sibling, cousin, etc. gave me a house. Why did my taxes increase? 

Even though there was no sale, a transfer of ownership occurred but because it is only between related family members this should not cause an excessive tax increase because the property does not uncap. The taxes should only increase by the rate of inflation.