Frequently Asked Questions
1. What is Assessed Value?
Assessed Value is a property value estimated by the assessor as of Tax Day. For 2023, Tax Day is December 31, 2022. That property value is subject to appeal at the March Board of Review.
2. What is State Equalized Value?
After all appeals are heard, the March Board of Review confirms the assessment roll. That roll is then subject to review by the county and state. Following those reviews State Equalized Value (SEV) is set. SEV is then considered to be 50% of Market Value or True Cash Value as determined on Tax Day.
3. What is the formula for Capped Value?
The Capped Value calculation is used to determine Taxable Value (TV). 2023 Capped Value (CV): The 2023 formula is: (2022 TV- Losses) x IRM + 2023 Additions = 2023 Capped Value. The 2023 Inflation Rate Multiplier (IRM) is 1.05 (+5%). Losses are considered to be physical losses to the property. Additions are considered to be physical additions to the property.
4. What is Taxable Value?
Taxable Value (TV) is the lesser of Assessed Value and Capped Value. In the year following a transfer of ownership, the Taxable Value will be equal to the Assessed Value. In Michigan, taxes are based on Taxable Value, not State Equalized Value. Taxable Value can never be higher than the Assessed Value.
5. Why aren’t my assessed and taxable values equal to each other?
For most properties, market values are increasing. The state constitution requires that properties are assessed at 50% of market value. However taxable value increases are limited to the 2023 statewide IRM or commonly called inflation rate of 1.05 (+5%) So even if your neighborhood increases 10% because of market activity, your taxable value will only increase 1.05.
6. Why isn’t my new assessment 50% of my purchase price?
The simple answer is that it is against the law. MCL 211.27 states that the purchase price is no longer the presumptive True Cash Value of a property. Market sale transactions for real property are used by Michigan assessors to compare assessed (AV) with the actual sale prices (market value) for those properties. Market value can be defined as the most probable price, as of a specific date, where both buyer and seller are knowledgeable and neither is under duress.
7. What is the time period considered in the 2023 sales study?
The State Tax Commission requires counties to perform preliminary equalization using a 12 month and a 24 month sales study for each community. Livingston County Equalization has determined that for 2023, a 24 month study was utilized. That period is from April 1, 2020 to March 31, 2022.
8. When can I appeal my assessment?
By law, the only time you may appeal your assessment is at the 2023 March Board of Review. Dates and times for appointments are printed on the Notice of Assessment and on the Township of Hamburg Website. Petitions will be available on-line or at the Assessing Department counter. Letter of Appeals can be submitted by indicated deadline. Postmarks not accepted.
9. What happens if I’m not happy with the decision of the March Board of Review?
State law provides the next level of appeal is with the Michigan Tax Tribunal. A Petition of appeal on RESIDENTIAL property must be filed by July 31st (following an appeal at the March Board of Review first and required). You can obtain the Petition on the Michigan Tax Tribunal website: michigan.gov/taxtrib Phone: 517-335-9760
Commercial and Industrial appeals are no longer required to file with the Board of Review first and can file directly with the Michigan Tax Tribunal by May 31st of the current year.
10. Why can’t I protest my taxes when I get my tax bill in July?
The 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.
11. Is there any way to apply for tax relief due to hardship?
You may apply for a Poverty Exemption. This is based on your income using the Federal Poverty Income Guidelines. You must obtain the application from the Assessor’s Office or on the Township website and submit ALL requested documentation. You can apply for this at the March, July or December Board of Review meetings. This exemption does not necessarily reduce your taxes to zero depending on the local government guidelines. Please contact the Assessor’s Office for additional information.
12. Do you have all of your information on line?
Almost all of the information in the Assessor’s Office is public record. You may look up information by name, address or parcel number. Please visit: www.hamburg.mi.us; Departments, Assessing; Parcel Info Search.
13. Why is my neighbor paying fewer taxes than me?
On March 15, 1994, Michigan voters approved the constitutional amendments known as Proposal “A”. Prior to Proposal “A” property tax calculations were based on State Equalized Value (SEV). Proposal “A” established “Taxable Value” as the basis for the calculation of property taxes. Increases in Taxable Value (TV) are limited to the percent of change in the rate of inflation or 5%, whichever is less, as long as there were no losses or additions to the property. The limit on TV does not apply to a property in the year following a transfer of ownership (sale).
Suppose your neighbor purchased his home March 20, 2021 and his 2021 State Equalized Value (SEV) was 50,000 and his Taxable Value was 35,000. His July 2021 tax bill will be calculated based on the prior owners taxable value of 35,000 for 2021 only. The year following the transfer the property becomes uncapped. Based on sales of homes in your neighborhood your neighbors new SEV for 2022 is 60,000. Because of Proposal “A” your neighbor’s home became uncapped for tax year 2022 and his TV will be the same as his SEV for 2022. His July 2022 tax bill will be calculated using 60,000 TV instead of the prior year’s 35,000.
In other words since Proposal “A” passed, you can no longer compare property taxes with your neighbors. You can compare SEV, but remember to compare apples to apples. Items to compare would be square footage of the home, how many baths, fireplace, fireplace, garage, decks, lot size, etc.
14. How are property taxes calculated?
Property Taxes = Taxable Value/1,000 x your local school district millage rate.
Brighton School District Primary Residence: 26.8909
Pinckney School District Primary Residence: 27.2509
Dexter School District Primary Residence: 32.0364
The Assessed Value: the total value of your property when all components are taken into consideration.
The first component is the value of the land. That value is determined by the sale price of parcels of land that are similar. The old adage "location, location, location" is as true today as it ever was. We only need to look at a parcel of property with lake frontage as compared to the same size parcel on an undesirable busy street.
The next component is the structure that sits on the land, your home. Homes may be large or small, old or new, fancy or plain, but they all have value. your home is classed regarding the quality of construction: it is measured on the outside to determine the foundation size, a per square footage rate is depending on the size of the structure and the story height. The bathrooms are counted along with all the amenities in your home. The number of bedrooms does not affect the per rate value.
The final component is any land improvement that you may have on the property, such as an attached garage, shed, pool, etc. This value is added to the property, but is not added as part of the home itself.
Factors, mandated by the state, are applied to the total value of the structure. That value is then added to the land and any land improvements to determine a true cash value.
The assessment of your property is 50% of the true cash value. This value should be the value that a willing seller would sell the property for to a willing buyer on the open market.
The Taxable Value: This value multiplied times the millage rate is what determines your taxes. The taxable value is a mathematical computation that began with the 1994 assessed value. The consumer price index is applied each year. When a property has a transfer of ownership, the Taxable Value is adjusted to the Assessed Value in the following year.
Taxable value = $100,000
Millage rate = 24.2284
$100,000 x .0242284 = $2,422.84
So that taxes would be $2,422.84.
The homestead exemption exempts the millage amount for school operating from your taxes. In most cases, this is a reduction of 18 mills.
The deadline for taxes levied after December 31, 2011 is June 1st for the summer tax levy and November 1st for the winter tax levy.
A Request to Rescind Principal Residence Exemption (PRE) (Form 2062) of a Conditional Rescission of Principal Residence Exemption (PRE) (Form 4640) must be filed with local assessor for any previous claims.