Property Taxes

Property Taxes:

Assessments are estimated at 50% of the properties Market Value. However, property owners pay taxes bases on the properties Taxable Value.

Taxable Value is the lesser of the Assessed Value (SEV) or the prior years taxable value minus losses, increased by the lesser of 5% or the Consumer Price Index, plus additions. A transfer of ownership will change the taxable value to the assessed value in the year following the transfer of ownership.

The following is a simple demonstration of how taxes are calculated. There are two types of property tax levied in the State of Michigan, Homeowner’s Principal
Residence and Non-Principal Residence.

The formula for calculating taxes is:
Taxable Value x Millage

A sample calculation based on an approximate millage rate for a Principal Residence is illustrated below for your assistance in understanding how property tax bills are calculated.

Example: Assume the Taxable Value of your Principal Residence property is $100,000 and the millage rate is 27.7204. Your tax bill would be calculated as follows:

$100,000 x .0287204 = $2,872.04

Please remember the Assessing Department does not compute or collect property taxes. Tis example is only intended to provide a simple explanation of the process.
For a more detailed explanation, you should contact the Treasurer’s Office.