For definitions of terms, please visit our Glossary.
FAQs
Top Answers: My tax bills are calculated based
on taxable value instead of state equalized value.
What does taxable
value mean to me? Taxable values began in 1995 as
part of Proposal A. Taxable values are adjusted
each year by the
Consumer Price Index (CPI) or 5% whichever is less
until property title transfers. Your taxable value
cannot be greater than your state equalized value.
In other words, Proposal A "capped" taxable
value increases by the CPI or 5%, whichever is
less.
Top
Can
my taxable value increase more than the rate of
inflation? Yes, if:
- A sale and/or title transfer
occurs. In the year following a sale and/or
title transfer,
the
property becomes "uncapped" making
the state equalized value (SEV) and taxable
value the same. Michigan law states the actual
sale
price must not be the sole basis for the new
SEV for
that property.
- New construction to a
property is added to the taxable value.
- The value of
items omitted from the previous year(s) assessed
value is added to the taxable
value.
Top
My
tax bills are calculated based on taxable value
instead of state equalized value. What does taxable
value mean to me?
Taxable values began in 1995 as
part of Proposal A. Taxable values are adjusted
each year by the
Consumer Price Index (CPI) or 5% whichever is less
until property title transfers. Your taxable value
cannot be greater than your state equalized value.
In other words, Proposal A "capped" taxable
value increases by the CPI or 5%, whichever is
less.
Can my taxable value increase more than the rate
of inflation?
Yes, if:
- A sale and/or title transfer
occurs. In the year following a sale and/or title
transfer,
the property becomes "uncapped" making
the state equalized value (SEV) and taxable
value the same. Michigan law states the actual
sale
price must not be the sole basis for the new
SEV for that property.
- New construction to a
property is added to the taxable value.
- The
value of items omitted from the previous
year(s) assessed value is added to the taxable
value.
Top
If my taxes are now based on taxable
value, why is there an assessed value?
The
Michigan Constitution still requires all properties
to be
assessed annually
at 50% of market value.
Top
How was my assessed value determined?
Assessors use a state required
mass appraisal method to value properties. We estimate
land values from sales data and building values
from a state cost manual. Then, we analyze sales
data from your neighborhood and develop factors
we use to further adjust our estimates to reflect
local market value.
Top
I haven’t made any improvements
to my house. Why did my assessed value change?
Your market value can change even
when there is no physical change to your property.
A growing economy or increasing population can
push housing values steadily upward. The Assessor
does not create increases in property value. He/she
recognizes changes as they occur and must adjust
values accordingly.
Top
Why is my change in assessed value
different than my neighbor’s?
Assessed value changes vary according
to the individual characteristics of houses in
relation to sales in your area. Building style,
size and amenities such as porches, decks, garages,
and extra bathrooms affect value estimates.
Top
My assessed value didn’t change,
but my taxable value increased. Why?
The current sales information
for your neighborhood may show no value increase
over last year’s value. However, the taxable value
is tied to the Consumer Price Index and calculated
annually causing an increase in your taxable value.
Top
How do I know if my assessed value
is reasonable?
Compare the market value of your
property with sales of similar homes in your neighborhood.
The sales should be on homes that are similar to
yours in size, style, age and condition. The Assessor’s
Office has sales information to assist you. (Market
value = Assessed Value x 2)
Top
I just bought a new house, why
isn’t my assessed value one half of my sale price? Michigan law prohibits assessors
from basing values on one sale price. We are required
to value your property based on the methods used
to value other properties in your area. While we
hope our value estimate is close to your sale price,
it is an estimate and may not be the same as your
recent sale.
Top
What is a property transfer affidavit?
Changes in state law after Proposal
A created the property transfer affidavit. An affidavit
must be filed whenever title of real estate or
buildings on leased land is transferred. It must
be filed even if you are not recording a deed.
Filing with the local assessor is mandatory.
Top
Where do I obtain and file the
affidavit?
Property transfer affidavits can
be obtained from closing agents such as a title
office, financial institution or attorney. They
can also be obtained at your local assessor’s office.
The new owner must file the affidavit with the
local assessor within 45 days of the transfer.
Top
What is the purpose of the affidavit?
Assessors use the affidavit to
make sure that property is assessed properly and
receives the correct taxable value.
Top
What is a transfer of ownership?
State law defines a transfer of
ownership as "the conveyance of title to or present interest in property, including
the beneficial use of the property." Transfers include deeds, land contracts, and a variety of transactions
outlined on the back of the affidavit form.
Top
What happens after ownership of
a property is transferred?
The Michigan Constitution limits
how much a property’s taxable value can increase
while owned by the same person. Once the property
is transferred, the assessor must change the taxable
value to 50% of the property’s usual selling price.
In other words, in the year following the sale
the taxable value equals the current state equalized
value.
Top
Are certain types of transfers
exempt from adjustment?
YES. Some of the exempt transactions
include changes in ownership solely to exclude
or include a spouse, transferring a property into
a trust where the sole beneficiary is the creator
of the trust or that person’s spouse, redemption
from a tax sale, or transfer to effect a foreclosure.
Some of the exempt transactions are listed on the
affidavit form and full descriptions are in MCL
Section 211.27a(7)(a-m).
Top
What is the homestead exemption?
State law grants a homestead exemption
from local school operating taxes for homesteads
and qualified agricultural properties. Currently
this is a reduction of 18 mills of school tax.
Top
How do I qualify for the exemption?
To qualify you must own the property
and occupy it as your legal, primary residence.
The deadline to qualify for any given year is May
1 of that year. Buyers who close and/or occupy
the residence after that date are eligible for
exemption in the following year.
Top
What form do I use?
If this is your first
homestead application or you are buying a property that was not
previously homesteaded, you can use the Affidavit
for Homestead Exemption (2368).
Top
What if I stop using my homestead
as my primary residence?
If you stop using your exempt
property as your principal residence but are not
selling it, you are required to file a Request
to Rescind Homestead Exemption (2602). This form must be filed within 90 days of the change.
The exemption remains in effect through December
31 of that year.
Top
What if I sell my house and buy
a new one?
You need to rescind the
homestead on the house you sold and request a homestead on your
new house. Use a Request
to Rescind Homestead Exemption (2602) form to rescind your old
homestead and the Affidavit
for Homestead Exemption (2368) form for your new homestead.
The Michigan Department of Treasury recommends the forms be completed
and distributed by the closing agent who supervises real estate
transactions. Homestead forms are also available at the Assessor’s
Office.
Top
When are my taxes due?
The summer taxes are billed July
1 each year and are due by July 31st without penalties.
The winter taxes are billed December 1 each year
are due by February 14th without penalties. On
March 1st, the delinquent tax rolls are given to
the County Treasurer and additional penalties are
added.
Top
What period do my tax bills cover?
Although the taxing agencies on
your bills may have different fiscal years, your
bills are for the calendar year in which they are
billed. Add your July and December tax bills together
for your total annual taxes.
Top
How are my taxes computed?
Taxes are computed by multiplying
your taxable value times the total mills. A mill
is $1.00 per thousand dollars of taxable value.
An easy formula to calculate taxes is shown below:
Taxable Value X Mills / 1,000 = Taxes
Homestead 100,000 X 23.5157 / 1,000 = 2,351
Non-homestead 100,000 X 41.5157 / 1,000 = 4,151
(Remember, a homestead is exempt from 18 mills of school operating
taxes!)
Top
Why did my taxes increase?
Taxes can increase because:
- The tax rate increased.
Voters have an opportunity to renew or approve
increases
to
tax rates at
special land or school elections. If
voters approve additional millage, your taxes
will
increase.
- Your taxable value increased.
Your taxable value may have increased because
(a) it was
adjusted
by the annual Consumer Price Index,
(b) it was uncapped after property ownership
transferred,
or (c) new construction or omitted
items were
added.
Top
Why are my neighbor’s taxes less
than mine? Property taxes are determined
individually according to taxable value. If you
recently purchased your property, your taxable
value was uncapped. Your neighbor’s taxable value
may still be capped and less than yours. The assessed
values on a property in 1994 became the base value
for taxable value calculations starting in 1995.
Because properties have been bought and sold at
different times taxable values may vary significantly.
A lower taxable value means lower taxes.
Top
I’m building a new house. How
can I estimate the taxes?
Estimate your annual taxes by
multiplying ½ of the estimated total value of the
completed home times the tax rate. Be sure to add
land value to your value estimate before computing
your estimated taxes.
Top
I don’t have any children in school,
why do I have to pay school taxes?
Michigan law requires everyone
to support local public schools through property
taxes. Eligible homeowners may be exempt for 18
mills of school operating taxes, but are still
responsible for school debt, building funds and
state education taxes.
Top
My mortgage company raised my
house payment because of my taxes. Why did the
taxes go up so much?
Typically this happens about one
year after you buy a new house or after a millage
election. Your mortgage company probably based
your original tax escrow payment on the last known
taxes. After you purchased the property it’s taxable
value was uncapped for the next tax year. The taxes
were then based on a higher value. Even if you
have not purchased a new house a special election
authorizing additional millage will result in a
higher tax bill. Once this happens, your mortgage
company reevaluated your escrow amounts and changed
your payment to cover the actual taxes on your
home. They may also increase your payment to make
up any shortfalls in the previous year.
Top
Do I have any delinquent taxes
on my property?
The Finance Department
has access to the City Treasurer’s payment records and can answer
questions about current taxes due. Taxes due for prior years must
be checked at the Lapeer County Treasurer’s Office at 810-667-0239.
It’s helpful if you have a parcel identification number handy to
help the County Treasurer look up your records.
Top
How can I find my property lines?
If you need to find your property
lines, you should contact a local surveyor to perform
this service. Several are listed in the yellow
pages of the phone books. We can provide your lot
size and a copy of your plot map to get you started,
but we cannot survey or locate stakes on your property.
Top
Where do I get a deed prepared
for my property?
Contact an attorney for a new
deed. If you are familiar with property transactions
and feel comfortable preparing legal documents
by yourself, deed forms are available at most office
supply stores.
Top
Where can I get a copy of my deed?
Copies of recorded deeds and land
contracts can be obtained from the Lapeer County
Register of Deeds Office at 279 N Court St, Lapeer
MI 48446.
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