The Assessed Value is the estimate of one-half (50%) of fair market value, which is calculated by the local unit of government’s assessing department. The Michigan State Constitution requires the assessed value be set at this level.
The County Equalized Value is reviewed by the Michigan State Tax Commission. The Tax Commission may add to, subtract from, or approve it as submitted. Upon their action, it becomes the State Equalized Value.
This is the value used times the tax mill rate, which produces the tax amount. The taxable value was created upon the passage of Proposal A by the electorate in 1994. The taxable value can increase from year to year by 5.0% or the amount of the consumer price index, which ever is less. The Consumers Price Index used to calculate 2005 taxable value is 2.3 percent. This means that if a transfer of ownership did not take place or something new was not added to the record during 2004, taxable value cannot increase more than 2.3 percent from 2004 to 2005. Taxable value is the amount a tax bill is calculated on.
If you purchased your home during 2004, beginning in 2005, your assessed value and taxable value will be the same, since taxable values are uncapped upon the year following transfer of ownership. If you had new construction during 2004, that addition will not be subject to the 2.3 percent cap on the increase in taxable value.
Additions or losses to the property are also taken into consideration. The formula is the previous taxable value, minus losses, x 1.05 % or the consumer price index, which ever is less, plus any additions = Capped Value.
The first thing you should do, is talk to your local Assessor about the valuation on your parcel. Check the appraisal records to make sure all components of the property are correct. If you wish to proceed at this point, you may lodge an appeal with your local March Board of Review. The Board of Review is set up under the Michigan General Property Tax Law. The board consists of three, six or nine members, appointed by the Township Supervisor, and approved at public meeting by the Board of Trustees. The Board of Review will hear your appeal, and will make a decision using their best judgment.
You may send a person to represent you, or as provided by resolution of the board of trustees, you may file an appeal to the Board of Review by letter. Please include the reason for appeal, your parcel number and telephone number. The Board of Review will conduct an appeal review for you, and notify you of their decision by first class mail.
You may telephone the Township Assessing Department to make an appointment. In order to make a personal appearance before the board, you must first make an appointment. If you wish to lodge an appeal by mail, your letter of appeal must be postmarked no later than the Tuesday following the second Monday in March.
You have the right to file an appeal with the Michigan Tax Tribunal. This appeal must be filed with the Tribunal on or before June 30, of the current year.