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1. What does the Assessing Department do?

The Assessing Department is responsible for the preparation of the annual Assessment Roll which is completed in accordance with the General Property Tax Act (GPTA). The Assessing Department follows the GPTA and State Tax Commission (STC) guidelines in order to determine taxable status, true cash value, assessed value, and taxable value for all real and personal property within Clinton Township.

2. What is the difference between Assessed Value and Taxable Value?

Assessed Value

Assessed Value is defined by state law as 50% of the market value of the property as of December 31st of the preceding year. Once equalized and approved by the STC your Assessed Value becomes the State Equalized Value (SEV) and this figure, along with Taxable Value, appears on your property tax bill.

Taxable Value

Taxable Value is derived from a formula created by Proposal A in 1994 which was designed to limit rises in property taxes by "capping" and restricting the rise in Taxable Value to the rate of inflation. Disregarding transfers of ownership or changes to your property, each year your Taxable Value can rise 5% or the rate of inflation, whichever is less. However, your Taxable Value cannot be higher than your Assessed Value.

3. How are my property taxes calculated?

Your property tax amount is determined by multiplying your Taxable Value by the millage rate.

Districts

Millage rate totals will vary depending on which school district your property is located within. There are five school districts operating wholly or partially within Clinton Township:

• Chippewa Valley
• L'anse Creuse
• Clintondale
• Fraser
• Mt. Clemens

Therefore it is possible for two properties to have the same Taxable Value but a different property tax amount because they are in different school districts and are subject to different millages.

Other Items

Other amounts may appear on your tax bill but they are not taxes and are not calculated using your Taxable Value. These items may include:

• Special Assessments
• Street Light Charges
• Delinquent Water
• Weed Cutting Bills

4. How is my property value calculated?

All values are calculated according to State Tax Commission (STC) standards. Property valuation in Michigan is a mass appraisal system that incorporates the cost approach, the sales comparison approach, and the income approach to value. Each year the assessor is required to analyze sales within economic neighborhoods using a two-year study. The results of the studies are applied to the neighborhoods so that assessed values are at 50% of market value.

5. Shouldn’t the Assessed Value be half of what I paid?

No. By state law, Assessed Value is not half its purchase price but instead half of its market value. Section 211.27(6) of Michigan Complied Law states:

The purchase price paid in a transfer of property is not the presumptive true cash value of the property transferred. In determining the true cash value of transferred property, an assessing officer shall assess that property using the same valuation method used to value all other property of that same classification in the assessing jurisdiction.

6. I recently purchased a home. Will my property taxes be the same as the prior owner’s taxes?

Maybe not; in 1994 voters passed Proposal A to help curb the fast rise in property taxes. Assessed Values are still calculated in the same way, however Proposal A created a separate value on which to base property taxes (Taxable Value). So while the Assessed Value may climb at a fast rate in accordance with the market, the formula under Proposal A “caps” the Taxable Value of a property and keeps it from growing as fast as the Assessed Value. Therefore a gap can form between the two values and the gap generally increases over time.

However, in the year following an eligible transfer of ownership, the Taxable Value is “uncapped” and made equal to the Assessed Value, but only for that year following the transfer. When a parcel is uncapped there could be a substantial increase in the property taxes for the new owner depending on the difference between the Assessed and Taxable Values of the property. As such, it’s possible for every property in your area to have different Taxable Values and different property taxes.

7. What is the Principal Residence Exemption or “Homestead” exemption?

If you own and occupy your home as your primary residence you may qualify for the Principal Residence Exemption (PRE). This exempts you from a portion of your local school operating millage. To claim a PRE you must file the form at the Assessing Department. When you no longer qualify you must file the rescission.

Please visit the State of Michigan website for information and guidelines regarding the PRE.

8. Are there any other exemptions/reductions available to me?

Poverty Exemption

There is a poverty exemption which is asset and income-based. Please see our department page for this year’s Poverty Exemption application.

Disabled Veterans Exemption

There is also an exemption for disabled veterans or their surviving spouse. If you are a disabled veteran or a surviving spouse of a disabled veteran please contact the Assessing Department for more information.

9. What is a Property Transfer Affidavit?

A Property Transfer Affidavit (PTA) must be filed whenever real estate or some types of personal property are transferred (even if you are not recording a deed or the transfer occurs via a land contract). The form is used by the assessor to ensure the property is assessed appropriately and to make the proper transfer of ownership determination.

The PTA must be filed by the buyer/grantee at the Assessing Department within 45 days of the transfer. If the PTA is not timely filed then the owner is subject to a penalty. For residential property, the penalty is $5 per day (maximum $200). For commercial and industrial property, the penalty is $20 per day ($1,000 maximum).

10. What is the Real Property Statement that you mailed to me and why are you asking me for this information?

The Michigan Supreme Court has ordered that information about the financing of property sales must be gathered. The purpose of the form is to determine whether favorable financing provided by the seller may have caused the sale price to increase, i.e. mortgage amounts, interest rates, and any personal property received by the buyer, etc. If so, any increase in price due to favorable seller-provided financing must be removed before the sale is considered for property assessment study purposes.

Information disclosed on Real Property Statements is confidential and will only be shared with the:

• Assessor
• County Equalization Department
• State Tax Commission
• Others involved in and for the determination of assessments

11. What if I am unhappy with my assessment?

First please review your property information online or at the Assessing Department to ensure accuracy. Assessing staff are here to help you understand your assessment and property record.

If you wish to appeal your assessment you may do so at the March Board of Review. This is the only time of the year you may appeal your assessment locally. For residential property a proper, timely-filed appeal to the March Board of Review is required if you wish to appeal further to the Michigan Tax Tribunal.

Assessment Change Notices

Assessment Change Notices are mailed near the end of February each year. The notice will show your previous values as well as the tentative new values for the new year.

The information on how to appeal to the March Board of Review, including dates, times, and the filing deadline is at the bottom of the notice form. March Board of Review details will also be posted on our website, in the local newspaper, and at the Civic Center.