What authority does Mundy Township have to place value on my property for tax purposes?
MCL 211.1 Sec. 1. The people of the State of Michigan enact:
That all property, real and personal, within the jurisdiction of this state, not expressly exempt shall be subject to taxation. Public Act 206 of 1893 shall be known and may be cited as The General Property Tax Act. (Link provided will take you out of The Charter of Mundy Township website and to the State of Michigan's.)
What property is assessed?
There are two types of property subject to assessment. Real property which includes land, land improvements and structures, farms, businesses, industry, residences, timber cut-over land and development property. The other is personal property. This includes furniture and fixtures, machines and equipment belonging to a business, certain public utilities, oil wells, structures on leased land and other similar properties.
What is "SEV"?
State Equalized Value- The state equalized value is the assessed value after equalization at the county and state levels. The SEV of a property approximates 50% of true cash value.
What is "equalized value"?
It is the result of using the State Tax Commission manual to determine the cost to replace less depreciation adjusted by market trends. In the past, values increased by the percentage of increase a neighborhood experienced in sales. Currently, the trend is downward, adjusting for declining values in sales. Typically, sheriff deed sales (foreclosed properties) are not used in the sales study to determine that percentage.
What is "taxable value"?
Taxable Value - Is the lesser of the State Equalized Value (SEV) of the Capped Value for each individual parcel of property. In the year following a transfer of ownership the Taxable Value of an individual parcel shall be the same as the SEV of the parcel for the year following the transfer of ownership..
How do I compute my taxable value?
Taxable value = Lesser of assessed value or capped value.
What is "capped value"?
Capped Value Formula:
(Prior year taxable value – losses) x (1.05, or the Inflation Rate Multiplier, whichever is lowest) + Additions=Capped Value
This formula gets applied ever year until there is a change in ownership.
How do I calculate my property taxes?
The assessor's office does not determine tax bills. The amount of tax you pay is determined by multiplying the tax rate by your taxable value. The tax rate is determined by the voter approved mileage.
Taxable value x Millage = Tax bill
(Click here to go to state’s estimated tax computations. Link provided will take you out of The Charter Township of Mundy website.)
Why are my taxes different from my neighbors when we have the exact same house?
If you purchased your home in a different year, the taxable value would have been uncapped and you will be paying taxes on the previous owner's SEV. There are many interior attributes that add value also.
