State law allows the assessor in your community to increase or decrease SEV (State Equalized Value) for all similar classes of property within your community based on prior year settled sales. Application of assessments is done by class of property not on a by property basis.
SEV for the current year is equal to half the market value of your property on the last date of the previous calendar year. Under Michigan law, Taxable Value (TV) can be no set at no more than SEV. Also under the law, increases to Taxable Value cannot exceed the increase in the CPI or 5%, whichever is less, in any calendar year. If you believe that your property SEV is more than the actual value you can receive in an arms length sale at market value, then you have the right, under the law to challenge your assessment.
A reduction in taxable value can only be achieved through a reduction in state equalized value to less than half of taxable value.
If you wish to challenge the assessment on a residential property, there are specific dates and times of the year that you may go before your local board of review. If you do not go before these local boards, in most cases you forfeit the right to appeal your assessment to the state authority. If you go before the local board and are not satisfied with the result, you then may appeal the decision to the state tax tribunal. There are forms and deadlines required in appealing your case to the state. If you wish to challenge the assessment of a commerical property, you may appeal it directly to the state, but again there are forms, deadlines and filing fees required.
Call us for a supported value opinion. Separate market from sentimental value. An appraisal can make your choices and responsibilities easier to uncover and help you to know you are being treated fairly.