What is assessed value?
Assessed value (tentative SEV) is based on 50% of market value as required by state law. Although numerous factors are considered by the Assessor's Office in arriving at the intitial market value of a property, increases in market value from year to year are attriutable to increased sale prices of properties in an assessing neighborhood as well as additions, remodeling, etc. These increases in market value result in an increase in assessed value (tentative SEV). The sale price of an individual property is not assessed at 50% of a sale price. After the assessment rolls of local jurisdictions are reviewed and approved (the equalization process) by the County and State, the assessed values become the State Equalized Values. SEVs are not subject to a "cap".
What is taxable value?
Taxable value is the value to which the millage rate is applied. Taxable value is subject to a "cap" and can be increased only by the amount of the Consumer Price Index (CPI) or 5%, whichever is lower. This results in another value called Capped Value. Taxable Value must be the lower of the SEV or Capped Value which is computed as:
Capped Value=(Prior Year's Taxable Value- Losses)x(the lower of 1.05 or the INFLATION RATE)+Additions.
Additions are all increases in value caused by new construction, remodeling, and the value of property that was exempt or removed from the assessment roll.
Lossess are all decreases in value caused by the removal or destruction of property, or the value of property that has been exempted or removed from the assessment roll.
The Inflation Rate is the increase in the Consumer Price Index (CPI) which is provided to all taxing units by the State Tax Commission. The CPI usually changes annually.
What happens if I just purchased my home in the prior year?For all properties that sold during the prior year, the current year Taxable Value will be "uncapped" and changed to the State Equalized Value of the property. There is no limit on the amount of change in Taxable Value in the year after a property transfers. However, beginning with the current year the cap goes back on the Taxable Value and increases in Taxable Value are limited by the capped value formula.
Last year my SEV was $55,000 and my Taxable Value was $55,000. What will my Taxable Value be this year?
Example: If our sales ratio study shows that market values increased in your neighborhood by 3%, this means your current year SEV is:$55,000 x 1.03=$57,200 (rounded)
The CPI increase was 1.5%, so your CAPPED VALUE is:
Your TAXABLE VALUE for this year is the lower of the State Equalized Value and the Capped Value, or $56,300.
Last year my SEV was $62,800 and my Taxable Value was $61,000. What will my Taxable Value be this year?
Example: If our sales ratio study shows that market values did not increase in your neighborhood, this means your current year SEV is:
$62,800x1.000=$62,800 (the same as last year).
The CPI increase was 1.5%, so your CAPPED VALUE is:
Your TAXABLE VALUE for this year is the lower of the State Equalized Value and the Capped Value, or $61,900.
Why did my taxable value go up, if my SEV did not increase?
The assessor (and the Board of Review) are required by law to increase the taxable value by the applicable rate of inflation (CPI). It would be illegal for the assessor to set the taxable value at any figure other than the 61,900. However, your taxable value cannot go higher than your SEV.
Last year my SEV was $102,000 and my Taxable Value was $100,600. I added an addition to my home last year. What will my Taxable Value be this year?
Example: If our sales ratio study shows that the market values increased in your neighborhood by 2%. Also, the appraisor for your area has estimated that your addition will add $15,000 to your SEV.
Your current year SEV is:
The CPI was 1.5% so your CAPPED VALUE is:
Your TAXABLE VALUE is the lower of the State Equalized Value and the Capped Value, or $117,100.
The following is a history of the Consumer Price Index as reproted by the Michigan State Tax Commission:
2002 utilized for 2003 1.015
2001 utilized for 2002 1.032
2000 utilized for 2001 1.032
1999 utilized for 2000 1.019
1998 utilized for 1999 1.016
1997 utilized for 1998 1.027
1996 utilized for 1997 1.028
1995 utilized for 1996 1.026
What is a valid basis for appealing your property tax assessment?
The state of Michigan established the appeal process to assure that the property tax system would function in an equitable fashion. It is the taxpayers right to take advantage of this process. Claiming that your prperty taxes are too high and continue to go up is not a valid basis for appeal. (Remember that the Taxable Value may increase each yar based ont he Consumer Price Index or 1.05 whichever is less). To actually see a reduction in taxes, the Assessed Vale (SEV) or Capped Value must decrease to less than the level of your current Taxable value.
To have a good basis for appeal you need to provide evidence which indicates the Assessed Value is in excess of 50% of the True Cash Value. This requires some research and fact finding on your part. Is the value of your property comparable to the sale price of similar properties that sold in your area? Is the information on which the Assessor based the appraisal correct? If you wish to check the accuracy, you need to visit the Assessor's Office to review your property record card.
A number of factors are considered when appraising a property to estimate its value. Some of these factors are age, size, quality and type of construction, lot size, finished attics and basements, the neighborhood where the property is located, and the selling price of similar properties in that area.
If you recently purchased your home for less than the value placed on it by the Assessor, you need to check to see if other homes in your area also sold for less than twice the Assessed Value (SEV). This may indicate that the market value is lower than the value established by the Assessor. Information on sale prices of homes is available in the Assessor's Office.
A professional appraisal of your property can be valuable if you file an appeal; however, unless substantial tax savings result from the appeal, the cost of the appraisal might be more than your tax savings.
How do I appeal my property value?
The York Township Board of Review meets on the second Monday of March and on the following Thursday by appointment only, and it is during this period that you must appeal your property value. Members of the Board of Review are citizens appointed by the Township Supervisor with Board of Trustee approval and are not employees of the Charter Township of York.
Notices of Assessment and Taxable Value are mailed to property owners approximately the first week of March each year. Read your notice carefully and if you have questions be sure to contact the Assessor's Office. Appearances before the Board are by appointment and the appropriate appeal forms will be provided to you upon request.
You will receive notification of the Board's decision regarding your appeal several weeks after the Board adjourns. This notification also provides you with information for further appeal to the Michigan Tax Tribunal (MTT) if you are not satisfied with the Board's decision. You must file your appeal with the MTT by June 30 of the current year.
In order to apeal to the Michigan Tax Tribunal, you ae required to first protest your property value before the local Board of Review.
Additional information regarding the Michigan Tax Tribunal may be obtained from the Michigan Tax Tribunal web site by clicking