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The Assessing Department is responsible for identifying and valuing all taxable real and personal property within a City or Township for the equitable distribution of the property tax burden in accordance with Michigan's General Property Tax Act and other applicable statutes.


In addition, the Assessing Department is responsible for

  • Maintaining property record cards for each parcel within the unit. These records include legal descriptions, land values, land improvements, building information, building values, exemption status, zoning information, etc.
  • Creating and maintaining an Assessment Roll annually.
  • Maintenance of all sales transactions on both vacant and improved properties; identifying and recording all new ownerships, processing related Property Transfer Affidavits, Homeowner’s Principal Residence Exemptions and Requests to Rescind.
  • Establishing land values and economic condition factors throughout the township annually.
  • Field inspections of all new construction projects and updating the property record cards accordingly.
  • Land Division requests and processing.
  • Periodic inspections of all real property parcels.
  • Defending appeals to the Michigan Tax Tribunal.

Understanding Your Property Assessment & Taxable Value

What is Assessed Value (AV)? The assessing officer in the local government unit is required to establish the assessed and taxable value of all real and tangible personal property within the unit as of December 31 of each year. AV represents 50% of the True Cash Value of your property. The law defines True Cash Value as the usual selling price of the property on an open market with no stress, or unusual conditions placed on the sale. The Michigan Legislature &Michigan Supreme Court have clearly stated that the actual sales price of a property is not the only controlling factor in the True Cash Value and the Assessed Value as calculated by the assessing officer. The Assessing Office will analyze all sales using a mass appraisal technique that takes into account the current cost to replicate your house and then depreciates that cost based on the age of the structure. It is then adjusted to market value by comparing the depreciated cost of homes that have sold in your area. This will allow the assessor to arrive at a uniform and equitable assessment for all properties.

 

What is Taxable Value (TV)? For tax purposes, the taxable values were capped at the 1994 value and can only increase at the rate of inflation or 5%, whichever is less. TV is a mathematical formula which is based on the preceding years Taxable Value increased by the Inflation Rate Multiplier (IRM). The 2024 IRM for the entire State has been determined to be 5.1%. As the current rate of inflation exceeds 5%, the 2024 IRM will be capped at 5% (expressed below as a ratio) and is applied by Statewide by each municipality. In addition to the IRM, Taxable Value may also increase for physical additions or transfer of ownership and may decrease for physical losses.

 

How do I figure out my 2024 Taxable Value?

2024 TAXABLE VALUE = (2023 Taxable Value – LOSSES) X 1.050 + ADDITIONS

 

Ok, so how do I calculate my ACTUAL taxes?

Assume the 2024 Taxable Value of your Principal Residence is $100,000 and the millage rate is 36.5098. Your annual property tax would be calculated as follows: $100,000 x .0365098 = $3,650.98 **This is an example only to show the process**

Inflation Rate Multiplier

Based on this statutory requirement, the calculation for 2024 is as follows:

1. The 12 monthly values for Oct 2021-Sept 2022 are averaged.

2. The 12 monthly values for Oct 2022-Sept 2023 are averaged.

 

The ratio is calculated by dividing the average of column 

two by the average of column one.

 

The specific numbers from the US Dept of Labor, Bureau of Labor Statistics:

21-Oct: 276.589

21-Nov: 277.948

21-Dec: 278.802

22-Jan: 281.148

22-Feb: 283.716

22-Mar: 287.504

22-Apr: 289.109

22-May:292.296

22-Jun: 296.311

22-Jul: 296.276

22-Aug: 296.171

22-Sep:296.808

Ave: 287.723

22-Oct: 298.012

22-Nov: 297.711

22-Dec: 296.797

22-Jan: 299.170

23-Feb: 300.840

23-Mar: 301.836

23-Apr:  303.363

23-May:304.127

23-Jun: 305.109

23-Jul: 305.109

23-Aug: 307.026

23-Sep: 307.789

Ave: 302.289

Ratio 1.051

% Change 5.1%

"Inflation rate" means the ratio of the general price level for the state fiscal year ending in the calendar year immediately preceding the current year divid​ed by the general price level for the state fiscal year. Local units CANNOT develop, adopt or use an inflation rate multiplier other than that issued by the State.

"General price level" means the annual average of the 12 monthly values for the United States consumer price index for all urban consumers as defined and officially reported by the United States department of labor, bureau of labor statistics.

Inflation rate multipliers used since the start of Proposal “A”:

1995: 1.026             2006: 1.033                2017: 1.009

1996: 1.028             2007: 1.037                 2018: 1.021

1997: 1.028              2008: 1.023                2019: 1.024

1998: 1.027              2009: 1.044                2020: 1.019

1999:  1.016             2010: 0.997                2021: 1.014

2000: 1.019            2011: 1.017                   2022: 1.033

2001: 1.032             2012: 1.027                 2023: 1.050

2002: 1.032             2013 1.024                 2024: 1.050

2003: 1.015             2014: 1.016                 2025: TBD

2004: 1.023            2015: 1.016                  2026:TBD

2005: 1.023           2016: 1.003                 2027: TBD        

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