Frequently Asked Questions
This portion of the site is for informational purposes only. The content is not legal advice. The
statements have not been evaluated by legal counsel for accuracy, completeness, or changes in
the law. Please seek the advice of an attorney for legal questions or interpretation of law.
What is State Equalized Value (SEV)?
The State Equalized Value (SEV) is the Assessed Value as adjusted following county and state equalization. The County Board of Commissioners and State Tax Commission must review local assessment jurisdictions to confirm or adjust (equalize) them to ensure they do not exceed 50%.
What is Capped Value?
“Capped Value” is the value established when the TV of the prior year, with adjustments for additions and losses, is multiplied by the Inflation Rate Multiplier (IRM). The multiplier is capped and cannot be greater than 1.05 (1 + 5%). It represents the change in the rate of inflation during the previous year. The final product is Capped Value (CV).
Capped Value= (Prior TV- Losses) X (IRM)* + Additions
*IRM = Inflation Rate Multiplier and is often referred to the rate of inflation. The rate of inflation is 5% or less, whichever is less, expressed as multiplier.
What is Uncap?
When a property, or interest in a property, is transferred, the following year’s State Equalized value (SEV) becomes that year’s Taxable Value (TV). In other words, if you purchase property, your Taxable Value for the following year will be the same as the SEV. The Taxable Value will then be “capped” for the second year following the transfer of ownership. This can result in a large increase in taxes for a new property owner in the first year of ownership. After that first year, the taxable value is again subject to the inflationary increase.
How Does An Assessor Determine My Assessed Value?
Land values are determined based on sales of vacant land. The building size and features are measured and cost out using the STC Assessors Manual which contains average construction costs as determined by the State of Michigan. The resulting cost is then adjusted by a county multiplier which will adjust the State costs to local County costs. This resulting value is further adjusted by an Economic Condition Factor (ECF), which will adjust the value to the Townships market. This final building cost is added to the land value for a true cash value (market Value). 50% of true cash value is the assessed value.
How Do Assessed Values Change From Year To Year?
When market values change, naturally so does assessed values. For instance, if you were to increase the total market value of a parcel of property by building a garage, the assessed value would increase proportionately. Similarly, should a property value be decreased because of a fire of other catastrophe, the assessed value would decrease to show the downward effect of the damage on the market value of the property. The economy of the entire community affects the assessed value. For example, over the years more property owners have rehabilitated or invested in new construction in and around the Township of Green Oak; and all property values within the Township have increased. This can easily be seen by looking at the asking prices of properties that are currently for sale on the open market and by finding out what properties have actually sold for within the Township. The Assessor has not created this value, but simply has the legal responsibility to discover it as it exists and appraise property accordingly.
When Will My Property Be Evaluated?
The taxable status of real and personal property for a tax year shall be determined as of each December 31 of the immediate preceding year, which is considered tax day. Property is evaluated yearly based on market sales. Department of Treasury memo states: Local units are encouraged to annually inspect a minimum of 20% of the parcels in each property class each year.
What Is The Difference Between Assessed Value And Taxable Value?
The state of Michigan requires that properties be assessed at 50% of the true cash value (market value) of the property. Taxable value is determined by taking the prior year taxable value minus any losses such as (fire and demolition), multiplying by the current year consumer price index (CPI), plus any additions such as (new construction). Since the passage of Proposal A in 1994, property taxes are calculated on taxable value. Taxable value cannot be higher than the assessed value. If this occurs, the taxable value is reduced to the assessed value. Prior to Proposal A, property taxes were calculated on assessed value.
How Can I Make An Effective Appeal Of My Assessed Value?
In mid-February, each year, prior to the March meetings of the local board of review, informational notices are mailed. This “Notice of Assessment” includes Assessed Value, Taxable Value, and Property Classification. Also included is the State Equalized Value, the percent of exemption as a Principal Residence, Michigan Business Tax, or Qualified Agricultural Property, and if there was or was not a Transfer of Ownership. March Board of Review meetings and times are also noted on the Notice of Assessment.
If you believe the Assessed Value is more than half the value of your property, you may appeal the Assessed Value at the March Board of Review. You can obtain information about the specific meeting dates and schedule an appearance with the Board of Review by contacting our office.
The taxpayer must provide evidence showing the assessment placed upon the property is incorrect. The Board of Review needs good reason to alter an assessment. It is imperative to be able to answer the questions, "What do you think the property is worth?" and "What are you basing your opinion on?" All assessments are to be based on the sales of similar properties. You may hire a professional appraiser, or you can look at sales in your neighborhood and compare them to your home. Per state law, the sale price of property cannot be the sole determining factor of the assessment of that property. Neither the Assessor nor the Board of Review can raise or lower a property assessment based solely on its sale price. Mortgage appraisals also may not show True Cash Value. All appeals still require Board approval regardless of evidence provided.
March Board Of Review Brochure
Why Can't I Protest My Taxes When I Get My Tax Bill In July?
State law provides for one time per year to protest the value of your property. That protest may be made at the March Board of Review only.
March Board Of Review Brochure
What Is A Property Transfer Affidavit?
P.A. 415 defines transfers and requires that whenever a property transfers ownership, a Property Transfer Affidavit must be filed by the new owner with the assessing officer (even if you are not recording a deed) with in 45 days of the transfer. This affidavit must disclose the following:
- Date of transfer
- Property address and parcel number
- Parties of the transfer
- Buyers contact information
- Terms of the sale
- Sale price of real estate
What Is A Principle Residence Exemption?
The Principle Residence Exemption (PRE) was formerly called Homestead Exemption. The State of Michigan changed the name to alleviate confusion with the Homestead Property Tax Credit filed on your individual tax return each income tax year. The PRE exempts you from paying up to 18 mills of school operating tax, on your principle residence you own and occupy. You must file for the exemption by submitting a Michigan Department of Treasury Form 2368 Principle Residence Exemption (PRE) Affidavit and must be filled out in its entirety to the Assessing Department at Green Oak Charter Township.
What Is The Deadline For Filing a Principle Residence Exemption?
The filing deadline for current and future years is June 1st for properties located in the Brighton and South Lyon school districts, and November 1st for properties located in the Whitmore Lake school district.
How Do I Qualify For The Principle Residence Exemption (PRE)?
The qualifications are simple; you must own and occupy the home as your principal residence on or before June 1st for properties in the Brighton and South Lyon school districts and November 1st for properties in the Whitmore Lake school district. A person or a married couple is allowed only one PRE in the State of Michigan see MCL 211.77 (cc) and 211.7(dd). You may not claim an exemption in any other state. The exemption continues until the use of the home as your principal residence changes. When the change occurs, you must notify the Assessors Department right away. Proposal A and state law does NOT allow for partial credit. As an example, even if you move into a non-homestead property on June 5th, the exemption does not begin until the following year. Legislation has allowed the granting of a second homestead in certain conditions. The "Conditional Rescission" is available when the previous homestead is not occupied or rented and is listed for sale. Please contact the Assessing Department if you think you qualify for the additional exemption.
How do I add or remove my spouse from ownership of my property?
Ownership and holding title are common terms that define who has ownership rights in the property? The simplest way to add a spouse to or remove a spouse from title is through a Quit Claim Deed. This type of deed transfers whatever ownership rights you and/or your spouse have in the property. No title search or complex transaction is necessary. The deed must include date of transfer, the grantor and the grantee, a legal description or parcel ID and consideration. It is important to have the deed notarized and then recorded with Livingston County Register of Deeds.
Removing or adding a co-owner (non-spouse) to property can also be accomplished through a Quit Claim Deed. However, how the grantee takes ownership is dependent on full rights of survivorship, or as Tenants in Common allowing you to define the percent of interest to each Grantee. Please contact your attorney for legal advice.
Seek the advice of an attorney if you have questions about how to fill out a Quit Claim Deed.
A Quit Claim Deed is available on the internet, though an attorney or office supply store. Green Oak Township does not provide this form.