Assessing

Property Tax Equation
Property Taxes = taxable Value / 1000 x your local millage rate

Disabled Veterans Exemption Eligibility Requirements:
In order to be eligible for the exemption, the disabled veteran must have been honorably discharged from the armed forces of the United States. They must be a Michigan resident. Additionally, they must meet one of the following criteria:

• Has been determined by the United States department of veterans’ affairs to be permanently and totally disabled as a result of military service and entitled to veterans’ benefits at the 100% rate.
• Has a certificate from the United States veterans’ administration, or its successors, certifying that he or she is receiving or has received pecuniary assistance due to disability for specially adapted housing.
• Has been rated by the United States department of veterans’ affairs as individually unemployable. The unremarried surviving spouse of the disable veteran is eligible for the exemption based upon the eligibility of their spouse; therefore, the spouse must also be a Michigan resident. The exemption will continue only as long as the surviving spouse remains unremarried. How is a determination made that the disabled veteran is permanently and totally disabled as a result of military service and entitled to veterans’ benefits at the 100% rate? The Veterans’ Administration defines a service-connected disability as a disability related to an injury or disease that developed during or was aggravated while on active duty or active duty for training.[1] The Veterans Administration Schedule for Rating Disabilities is used to assess the medical conditions and illnesses incurred or aggravated during the veteran’s military service and a percentage rating from 0% to 100% is assigned based on the severity of the disability. Individuals filing the affidavit for the exemption under criteria a) must provide a copy of the letter from the Veterans’ Administration indicating they have a 100% service connected disability and are entitled to receive benefits.
  • Note: The Act does not require the disabled veteran to have already received the benefit, it only requires that they have been determined to be permanently and totally disabled as a result of military service and entitled to veterans’ benefits at the 100% rate.
• What is assistance for specially adapted housing?
  • The Veterans’ Administration provides veterans with certain permanent and total service-connected disabilities financial assistance to purchase or construct an adapted home or modify an existing home to accommodate a disability. There are two grant programs: specially adapted housing grant (SAH) and the special housing adaptation grant (SHA).[2] The State Tax Commission has determined that receipt of either grant would qualify an individual for the exemption under criteria b).
  • Individuals filing the affidavit for the exemption under criteria b) must provide a copy of the certificate from the Veterans’ Administration indicating they are receiving or have received pecuniary assistance due to disability for specially adapted housing.
• What does individually unemployable mean?
  • Individual unemployability is part of the Veterans’ Administration disability compensation program. Under this program, veterans may receive compensation at the 100% rate even though their service-connected disability is not rated at 100%.[3]
  • In order to be eligible a veteran must prove they are unable to maintain substantially gainful employment as a result of their service-connected disability. In addition, they must have one service-connected disability rated at 60% or more or two or more service-connected disabilities with at least one rated at 40% or more with a combined rating of 70% or more.[4] Individuals filing the affidavit for the exemption under criteria c) must provide a copy of the letter from the Veterans’ Administration indicating they are individually unemployable. Is there an asset test and/or means test to determine eligibility? No, there is no asset test and/or means test to determine eligibility. In order to be eligible, the disabled veteran must meet the requirements of Public Act 161 of 2013 regardless of their income or the value of their home.

If you own and occupy your home as your principal residence, you can fill out a PRE (form 2368) to receive an exemption from the tax levied by a local school district for operating purposes, up to 18 mills. You must submit form 2368 to the Assessor by June 1st of current year for summer taxes and November 1st for Winter taxes.

When a person no longer owns or occupies the property as a principal residence, he or she must file a Request to Rescind Homeowner’s Principal Residence Exemption, form 2602, with the township assessor to remove the PRE. The PRE will be removed from the local property tax roll by the assessor beginning with the next tax year. Failure to rescind a PRE may result in additional taxes, interest and penalties. Under certain circumstances a person may qualify for a conditional rescission which allows an owner to receive a PRE on his or her current Michigan property and on previously exempted property simultaneously for up to three years. To initially qualify for a conditional rescission, the owner must submit an Owner’s Conditional Rescission of Principal Residence Exemption (PRE), Form 4640 to the township assessor on or before June 1 or November 1 of the first year of the claim.

Notices of assessment change are mailed at the end of February. This notice indicates the assessed value and taxable value for the year in which it is set. It shows the percentage of Principle Residence Exemption that is on the property, the Classification of the property and if there was or was not a Transfer of Ownership.

When dealing with a current assessment year (following calendar year after April) please reach out to the township assessor. The assessor will be happy to review your property with you and make on-site visits. When dealing with a roll that has been finalized by the assessing department (after you receive your change notice in February) your first step is to appeal to the March Board of Review. The assessor will provide you the necessary forms, but it is up to you to present your case, even if you appeal in writing, so please support your claim of an improper assessment, such as a recent appraisal and comparative property sales.

The Board of Review will notify you in writing with their decision. If you find their decision unsatisfactory, you may further appeal to the Michigan Tax Tribunal. Contact information for the MTT will be provided along with the Board of Review decision. IMPORTANT: For residential and agricultural properties, you may NOT appeal to the MTT on a valuation dispute unless you appeal to the March Board of Review first. the last meeting of the March Board of Review. The meeting dates and times of the local Board of Review are also included in the notice.

When a property, or interest in a property, is transferred, the following year’s State Equalized Value (SEV) becomes that year’s Taxable Value (TV). In other words, if you purchase property, your Taxable Value for the following year will be the same as the SEV. The Taxable Value will then be “capped” for the second year following the transfer of ownership.

Because of Proposal A which took effect in 1994, when a property transfers to a new owner the Taxable Value increases to the Assessed Value in the year following the sale and then is capped at the rate of inflation as long as you own the property.

The taxes levied next year may be vastly different than the taxes you will pay this year. We encourage you to estimate your taxes. A property tax estimator can be accessed via the following link: https://www.michigan.gov/taxes/property/estimator

Due to the recent State Tax Commission policy, it is expected that local units of government will annually field visit a minimum of 20% of each parcel in each property class each year. The expectation is that all parcels will be examined at lease once over a five-year period.