Board of Review FAQ's
A basic knowledge of these terms will help you better understand Michigan property tax law.
• Assessed Value—the assessed value helps determine market value.
The assessor is constitutionally required to set the assessed value at
50% of the usual selling price or True Cash Value of the property.
• State Equalized Value (SEV)—SEV is the Assessed Value that has
been adjusted following county and state equalization. The County
Board of Commissioners and the Michigan State Tax Commission must
review local assessments and adjust (equalize) them if they are above
or below the constitutional 50% level of assessment.
• Capped Value—Capped Value under Proposal A increases from year to
year by 5% or the rate of inflation, whichever is lower. Improvements to
the property will also increase the Capped Value more than the rate of
inflation. A sale or the transfer of ownership will “uncap” the property and
establish a new SEV and Taxable Value.
• Taxable Value—Taxable Value is the lower of SEV or the Capped Value.
If you have owned your property for a fair amount of time, more than likely, your State Equalized Value (SEV) exceeds your Taxable Value. If this is the case, a decrease in the real estate market will be reflected in a decreased SEV. However, the Taxable Value during most of those previous years was only increasing at the rate of inflation and not at the rate of housing prices. In the case of a longtime property owner the SEV might decrease while the Taxable Value increased but still remained below the SEV.
If you happen to be a property owner who purchased a property in the last few years and you have decreasing property values in your neighborhood, your SEV could fall below your Capped Value sooner than someone who has owned their property for a longer period of time.
Two big downfalls that we hear are:
1. Neighbors paying completely different tax amounts
2. An uneasiness about moving to new properties because of the fear of “uncapping” and paying a higher tax rate.
Residents who wish to appeal their value need a petition form and should provide documentation to support their appeal. A “Petition to the Board of Review” must be completed before appearing before the Board. The petition form can be obtained at township hall just prior to your Board of Review appointment; it can also be obtained from the Township Assessing office or downloaded off the Township website.
Residents should provide documentation of comparable houses in your neighborhood that sold at lower prices than your appraised value or provide an appraisal reflecting the fair market value of your home during the previous 12 month sales period. The Assessing office has sales information where you can look at sales in your neighborhood and compare them to your home. It is also a good idea to review your field inspection sheet in the Assessing office for accuracy. If there is an error, it should be brought to the attention of the Assessing office.
Please call the Assessing office to review your assessing record card, ask questions or make an appointment: call 734-354-3269.