How can my taxable value increase when my assessment stays the same or decreases? When market values are rising, assessments are typically less than 50% of the market value by the time assessment notices are mailed because of the change in market conditions that have occurred between the time of the sales study and when the notices are mailed. State law requires assessment to approximate 50% of market value. When you receive your notice of assessment, taxable value, and property classification at the end of February the market may have changed since tax day (December 31), and may have changed since March 31 of the previous year, which marks the end of the sales study period. Why doesn’t my assessment appear to reflect current market conditions?
The Department of Assessing analyzes several sales in each neighborhood to arrive at uniform and equitable assessments for all properties. The Michigan Legislature and the Michigan Supreme Court have clearly stated that the actual sales price of a property is not the controlling factor in determining true cash value and calculating the assessed value. Michigan law defines true cash value as the usual selling price. Why isn’t my assessment exactly half of the sale price? This insures that all properties are assessed at 50% of market value as of tax day - December 31. If the sales in a neighborhood increase or decrease then all of the properties will be affected by what the sales have indicated. A neighborhood can be a single subdivision or a grouping of subdivisions with similar characteristics. The sales are organized by neighborhoods. To ensure properties are assessed uniformly and at 50% of market value, the assessor uses a two year sales study. How does the assessor determine my assessed value? Taxable Value: Taxable value is the lesser of the capped and assessed value.Ĥ.A sale or transfer of ownership will “uncap” the property so that the taxable value is equal to the assessed value. Improvements to the property will also increase the capped value more than the rate of inflation. Capped Value: Capped value adjusts year to year by 5% or the consumer price index (CPI), whichever is lower.The County Board of Commissioners and the State Tax Commission must review local assessments and adjust (equalize) them if they are above or below the constitutional 50% level of assessment. State Equalized Value: SEV is the assessed value that has been approved following County and State equalization.Assessed Value: The assessor is constitutionally required to set the assessed value at 50% of the usual selling price.What do the terms assessed value, state equalized value, and taxable value mean? Information can be found online by visiting Property Tax and Assessment Info. Where can I find information about a piece of property? Please click on our Assessment Notice FAQ for more information 2.
0 kommentar(er)
