Property Assessment and Taxable Value
Understanding Your Property Assessment and Taxable Value
The following is a brief explanation of how your Assessed and
Taxable Values work.
Many properties in the City will experience declining assessed
values for 2010. The Assessor’s Office spends a considerable amount
of time analyzing actual sales that have occurred over the past year
in order to estimate property values as of December 31, 2009. A 12
month sales study, as required by the State Tax Commission, has been
used to establish the proposed assessed values for 2010. The 12
month sales study covers a period from October 1, 2008 to September
30, 2009.
 In February of 2010, property owners will
receive a Notice of Assessment, Taxable Valuation, and Property
Classification. If you haven’t received one in the mail, please
contact our office. The Notice provides the property owner with
pertinent information regarding their property. There are three
important areas for review.
- The Notice provides the 2010 valuations, the 2009 valuations
and the amount of change.
- The document will show if the property’s taxable value was
"uncapped" as a result of an ownership transfer. The Notice will
indicate whether there "was" or "was not" a change of ownership of
the property during 2009. If there was a transfer of ownership,
the taxable value will "uncap" and be the same as the Assessed
Value.
- The Notice will indicate the percentage of the property being
used as a Principal Residence. If you own and occupy the property
as your principle residence, the percentage indicated should be
100%. Property owners are encouraged to review each of these areas
for accuracy. Please contact the Assessor’s Office if you should
have any questions or concerns.
If the property owner is in disagreement with the valuations on
the Notice, they may appeal to the March Board of Review. The
meeting dates are listed on the Notice. Valuation disputes must
be heard by the March Board of Review. Listings of unsold homes
and sales occurring in 2010 will not be considered by the March
Board of Review in estimating value on December 31, 2009. Please
feel free to contact the Assessor’s Office for more information.
Assessed Value represents 50% of the estimated property value for
2010. Taxable Value is a mathematical formula which is based on the
preceding years Taxable Value increased or decreased by the
Inflation Rate Multiplier (IRM). The 2010 IRM for the entire
State has been determined to be -.3% (4.4% for 2009) and is applied
by each municipality. In addition to the IRM, Taxable Value may also
increase for physical additions or decrease for physical losses.
During 2010, the appropriate millage rates will be multiplied
against the 2010 Taxable Value to determine the 2010 property taxes.
The following examples illustrate how the Taxable Value can
change independently of the Assessed Value. If a homeowner has owned
their home since the Constitutional Amendment, known as Proposal A
passed in 1994, they could receive 2009 & 2010 values as follows:
| |
Assessed Value |
Taxable Value |
| 2009 |
$200,000 |
$160,000 |
| 2010 |
$200,000 |
$159,520 (decrease -.3% IRM) |
The previous example shows that Assessed Values can remain the
same, while Taxable Values show a decrease. This is a function of
the statute. Taxable Value can never be higher then the assessed
value.
The March Board of Review does not have the authority to
change Taxable Value unless a reduction is made to the assessment
that would affect the taxable value.
Again, Notices of Assessment, Taxable Valuation, and Property
Classification are mailed to all property owners of record in
February. The IRM percentage is printed on the Notice. Please review
the Notice carefully by checking mathematical calculations,
principle residence exemption percentage and transfer of ownership
information. Board of Review and assessment information will be
broadcast on cable channel 13 periodically during February and
March. Should you have any questions or concerns about your Notice,
feel free to contact the Assessor’s Office at 248-347-0485 or
email
the Assessing Department.
D. Glenn Lemmon, City Assessor
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