Q. How are property taxes calculated?
A. Property taxes are calculated by multiplying two values - The taxable value of a property and the millage rate. Special assessment (drain or street light assessments) may also be aded to the winter tax bill.
Q. What are the State Equalized, assessed, and taxable values?
A. State Equalized, assessed and taxable values are all independently calculated from each other and may be different or the same.
State Equalized Value (SEV) - This value is typically the same as the assessed value unless the County or State has deemed that the Assessor is not assessing property at 50% Market Value. Then a factor is applied and the SEV would differ from the assessed value.
Assessed Value (AV) - This value is defined by State Law as not greater than 50% of True Cash Value (market value) of the property being valued.
Taxable Value (TV) - Thisvalue is calculated from a formula created by Proposal "A" in 1994. The formula is:
(previous Year TV - Lsses) X CPI + Additions = Current year TV
Losses = Physical changes to property that ower value (i.e. removal of a garage or porch)
CPI = Inflation rate as calculated by theMichigan State Tax Commisison
Additions = Physical changes to property that increse value (i.e. addition of garage or porch.
By definition the taxablevalue can not be greater than the assessedvalue. However, in the year following a transfer of ownership the taxable value is uncapped and increased to the current year assessed value.
Q. What is the Millage Rate?
A. A mill represents $1 of tax per $1000 of taxable value. Several agencies levy millage. The Township collects taxes for itself along with Ingham County, All School Districts (E. Lansing, Lansing & Waverly), Ingham Intermediate School District, Lansing Community College, State of Michigan Education Tax,Capital Area Library, Airport Authority, Potter Park Zoo, etc. See Attached Millage rate List.
Q. Why did my assessed value go down and my taxable value go up?
A. As noted above, a property's assessedvalue and taxable value are independently calculated. Assessed values change with the real estate market and can go up or down without any limitatin. Taxable values change based on the above formula. Regardless of the change in assessed value, as long as the taxable value is less than the assessed value it wil increase based on the above formula. That is based on State Law and not unique to the Township.
Q. Can the assessments and taxable value be changed during the year?
A. The Valuation date for all property in Michigan is December 31st of the preceding year. In example, the 2008 assessment is based on the market conditions and what physically existed on the property as of December 31, 2007. Property owners have the ability to protst this value to the March Board of Review. Once the Marck Board of Review adjourns the values are set and are the basis for both the July & December tax bills. If an ppeal was made to the March Board of Review a subsequent appeal may be filed with the Michigan Tax Tribunal.
Q. What are the Personal Residence Exemption (PRE) and the Qualified Agricultural Exemption?
A. Both exemptions allow for 18 mills of Local School Operating tax to be exempted. The amount may be less the 18 mills depending on millage rollback formulas. To qualify for a PRE you must own & occupy the property to be exempted prior to May 1 of the year to be exempted. To qualify for a Qualified Ag Exemption more than 50% of the property must be used for agricultural purposes.
Q. Who can I contact regarding my assessment and tax bill?
A. Scott Cunningham, Assessor - 485-2272 ; Leo Rodgers, Treasurer - 485-7115