HELPFUL INFORMATION REGARDING YOUR ASSESSMENT

True Cash Value: This is a calculation the Assessor makes as to what the value of your house is for property tax purposes. It is not the    same as your sale price. Although, with a completely unbiased sale in a perfect, nonchanging market it should be close. 

Assessed Value: 50% of the True Cash Value.                                                     

Taxable Value: This is the number that is used to calculate property taxes. 

Principal Residence Exemption (PRE, previously known as the Homestead Exemption): Michigan residents are allowed an exemption                 from up to 18 mills of School Operating Tax for one residence that they own and occupy as their Principal Residence. Important: You                   must file an affidavit with your city or township to get this exemption. The deadline each year is June 1 or November 1, depending on                   the municipality.

Millage Rate: This is a combination of all mileages on your tax bills that go to the different entities (city, township, county, school,                       etc.) One mill equals $1 in tax per $1,000 of taxable value.

Taxes: Taxable Value divided by 1,000 times millage rate plus 1% administration fee and special assessments.

The year after a property transfers ownership, the taxable value is “uncapped”** and becomes the same as the assessed value. This         basically means that your property taxes will be based on the value of the property when you purchased it, not what the previous owner was paying. The longer the previous owner owned the property and the more the market has increased, the more the taxable value, and therefore the taxes, could increase due to the uncapping. **There are exemptions from uncapping.

The Assessed Value, Taxable Value and PRE percent are all on your Change of Assessment Notice that you just received.