How to Appeal Your Property Assessment

8/14/2019 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

Documents

How to Appeal Your Property Assessment