how to appeal your property assessment
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How To Appeal
Your Property
Assessment
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St ate Equal ized Val ue (SE V)50% Of the True Market Value of Your Home
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Taxabl e Value (TV)Lesser of SEV or CV
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CPI = consumer pri ce i ndex(infl ati on)losses = destroyed or removed property
additions = items not previously assessed
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Capped Val ue ( CV)(Last Years Taxable Value losses) x (100%Last Years TV+(CPI or 5%) + additions) =
New Taxable Value
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Should I Appeal my Assessment?1. Is my State Equalized Value (SEV) half of what I could
sell my house for?
2. Can I present the information in a reasonable and
accurate manner to enhance my chance of success?
3. Am I willing to do the work necessary to prove my
case?
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This is almost a perfect
year to appeal yourassessment.
If you correctly appeal an
improper assessment, youmay bring your SEV closer
to, or below your Capped
Value.
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In 1978 the Headlee Amendment passed to limit
the amount of revenue government could collect.It basically limits revenue to the CPI (inflation).
If the revenue exceeds that amount, the millage
must roll back.
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In 1994 Proposal A passed. Unlike Headlee, it
was concerned with the taxable value of
individual property. It capped annual increases inyour taxable value at the CPI (inflation) or 5%
whichever is less. Millages are applied against
the taxable value.
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How can my property values be declining and my taxes
still go up?
Capped Value SEV
Proposal A capped your taxable value at the rate of the
CPI (inflation) each year but the State Equalized Value
may have increased at a much faster rate. Those who havebeen living in their home since the passage of Proposal A
in 1994 are likely paying far less than people who moved in
later. When property changes hands the cap is removed
and takes the SEV as its new assessment.
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If your property declines in value, and the value does not
decline to match or go below the Taxable Value, your taxes
will go up.
This year and probably next the CPI (inflation) will be
about 4.4% which is very near the maximum increase
under Proposal As cap and very likely will not allow the
millage to roll back under Headlee.
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How Your Propertys Market Value is Calculated.
The Assessing Department conducts sales studies each year byreviewing all sales data, but excluding most foreclosures.
In the past the analysis was conducted over a two-year period.
Because of the decline in market value, the state now allows sales
from a one-year period, to better reflect the current market.The sales from October 1, 2007 through September 30, 2008 will be
used for the 2009 sales study.
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Who Makes Up the Board of
Review?
The Local Board of Review is supposed to be made
up of your peers.
Back when everyone knew each other and there
was only town and farmland it worked well. They
truly knew what your property was worth.
Today, city and township governments usually
appoint important people in the community, real
estate agents or friends of the administration.
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About the Board of Review
All Boards of Review are Open Meetings. This means you may
take anyone with you and may sit in on other hearings to get a
feel for the process.
They must give you an opportunity to be heard.They are not required to take abuse.You are not required to take abuse.The Board is there to determine the value of your property,
not your taxes
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Call Your Assessors Office
In Detroit you must first appeal to the Assessors Review in
early February before you can appeal to the Board of
Review.
Check your city or township to see when they have their
Board of Review and how to schedule your appeal. It mustbe sometime in March.
Some cities or townships allow for written appeal if you
choose, which will afford you the same access and rights.
MAKE ALL EVIDENCE IN TRIPLICATE.
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Appeal Preparation: The First StepGo to your Assessors Office and get your field or real estate
summary and your valuation statement. Some cities have thisinfo online.
Is their description of your property accurate? (ex. number
of baths, fire place, square footage, number of rooms.) Ifyou need help with the calculations, ask the assessor to
assist you. Note any errors on a sheet of paper. Tell the
assessor those errors may be corrected without formal
appeal.
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Now To Work!
Ask your assessor for a list of the houses sold to determine
their assessment of your home. Make sure that their choices
are similar in size, age, and have the same qualities as your
home.
Look at the SEV of similar homes in your neighborhood.Ask a local real estate office for the list of homes that have
sold in your area.
Should I hire an appraiser?
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Begin the Inspection on Your Home
Check your basement for cracks, leaks, or seepage.
Are your walls cracked from settling or your roofline sagging?
You are not required to give access to the interior of
your home to the assessor.
Take Pictures.
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Where You Live is Important
Do you have areas of mixed zoning, noxious odors,excessive noise, large amounts of traffic, and access
to all utilities?
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Perf orm an Outside Inspecti on ofYour Home
Do you have easements of any type on your property?
Any public utilities right of ways or encroachment byyour neighbors? Does your property flood? Do you have
standing water after a heavy rain? Are you in a flood
plain? Note these problems on your list. Check your
field/property sheet. Take pictures.
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P.A 415 of 1994 (Matthew Gast)
Amended Section 211.27 MCL
The assessor shall not consider the increase in true cash value that is a
result of expenditures for normal repairs, replacement, and maintenance
in determining the true cash value of property for assessment purposes
until the property is sold
You ma y choose to file F orm 865 w ith th eMichig an De partment o f T reasury but f ili ng isvolu ntary.
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Exempt from Consideration.Outside painting
Repair or ReplaceSiding
RoofPorchesStepsSidewalksDrives
Repaint or repair masonry
ReplaceAwnings
Gutters or downspoutsWindows or doorsInsulation and weather stripping
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Exempt fromConsideration.Rewiring
Replacing plumbing and light fixtures
Replace woodwork
Replace furnace
Interior plastering
ReplaceCeilingWallsFloor surfaces
Remove partitions
Replace water heater
Repainting or decorating
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After you Appeal at Your Local Board
of ReviewWhen you receive the determination of the Board of Review
you may appeal the decision. The determination will inform
you of your rights and how to contact the State for an appeal.
The State will send you a form and assign you a docket
number.
Return the form and copies ofeverything you have
submitted to the Board of Review.
Your hearing will be local but not necessarily in your city. Youmust pay your taxes while they are under appeal. If they find
in your favor they will pay you interest. This process may take
more than a year. You must keep your taxes paid but you
may appeal the next year and they will be heard at the same
time