Delhi Charter Township Assessing Department

Frequently Asked Questions

Where is your office located?

What are your office hours?

Valuation & Tax Bill Questions

I just purchased my home.  Shouldn’t the assessed value be half of what I paid?

I recently purchased a home.  Will my taxes on this property be about the same amount as the prior owner’s taxes?

My neighbor and I have very similar homes.  Why is my tax bill higher than theirs?

How can I find out what information you have on my property or on my neighbor’s property?

Why did my taxes go up this year?

What can I do if I disagree with the Assessed Value or Taxable Value placed on my property?

What if I am not satisfied with the Board of Review’s decision on my appeal?

Principal Residence/Homestead Exemption Questions

Property Transfer Affidavit Questions

Real Property Statement Questions

I'm moving. Do I need to inform the Assessor's office?

I changed my name. How do I get it updated on my property information?

How do I remove a name from my property information?

Business Personal Property Questions

---

 

 

What are your office hours?

The Assessing Department is open from 8:00 a.m. to 5:00 p.m., Monday through Friday, except for holidays or as otherwise noticed.

Our Staff:

Nicole Wilson,   CMAE3, PPE    Township Assessor

Jim Munson,      CMAE2, PPE    Appraiser

Jeff Hanes,        CMAE1             Appraiser

 

Find your neighborhood

Sales - Residential 401 Class
01-01-08~01-31-10

Sales - Residential Vacant Land
01-01-08~01-31-10

 

Valuation & Tax Bill Questions

What is the difference between the Assessed Value and Taxable Value of my home?

Assessed Value is defined by state law as 50% of the market value of the property as of December 31^st of the preceding year.  Taxable Value is derived from a formula created by Proposal A in 1994, designed to limit Taxable Value increases at the rate of inflation or 5% whichever is less. 

How is my assessed value calculated?

All assessed values are calculated according to State Tax Commission standards.  This value is shown as the State Equalized Value or SEV on your tax statement.  Assessments are calculated using a mass appraisal technique that takes into account the current cost to replicate your house and then depreciates that cost based on the age of the structure.  This number is then adjusted to market value by comparing the depreciated cost of homes that have sold in your area to their sales price.  Each year, the Assessor is required by law to analyze sales within economic neighborhoods using a sales study to adjust that neighborhood so that assessed values are at 50% of market value. 

How is my Taxable Value calculated?

The term Taxable Value was used in the 1994 constitutional amendment known as Proposal A to replace SEV in the property tax equation to calculate property tax bills.  The first step in the process of determining Taxable Value is to calculate the Capped Value of every parcel of assessable property using the following formula:

CAPPED VALUE FORMULA:

Bulletin 10 of 2009 Inflation Rate Multiplier

Prior Taxable Value – Taxable Value of Losses * Lesser of 5% or CPI Multiplier + Taxable Value of Additions = Capped Value

CPI is the Consumer’s Price Index (Inflation rate) as calculated by the State of Michigan each fall.

The legislature has defined Taxable Value to be the lesser of SEV or Capped Value.  Assessors are required to annually calculate a Capped Value for each individual parcel of real property.  The Capped Value is then compared to the SEV of that property, and the lower of the two will be its Taxable Value upon which taxes are levied.  The year following an eligible transfer of ownership, the SEV of the transferred property set in that year is its Taxable Value. 

The Equalization Timetable

With significant evidence of declining market values, the Michigan State Tax Commission has directed all Assessors and Equalization Departments to use a 12-month study for the preparation of 2010 Residential property assessments. 

For 2010 Residential property assessments, the 12-month sales study begins October 1, 2008 and ends September 30, 2009. 

According to the State Tax Commission, the use of a 12-month sales study allows the 2010 assessments to more accurately reflect current market conditions.  However, the limited number of current sales also means that many areas of the Township have very limited data for the Assessor to calculate current assessments.  It may be necessary for the Assessor to expand areas for reviewing neighborhood analysis or estimate market changes based upon area trends.

For 2010, the State Tax Commission is allowing a 24-month appraisal studies (differs from sales study) to determine the property assessments for all other classes of property (agricultural, commercial, industrial, etc). 

Foreclosure Sales

The State Tax Commission has allowed the use of foreclosure sales in the preparation of the assessment rolls.  However, these sales must meet a set of standards and requirements established by the STC.  The holder of the mortgage, which is usually the seller of the real estate, must provide a Real Property Statement to the local Assessor.  These forms are rarely, if ever, submitted and therefore do not appear in the Township sales studies.  In addition to the returning of the forms, other conditions must also be met.  One of the most important conditions and, most obvious, is that the home must not show any signs of vandalism or excessive deferred maintenance.  It should be in approximately the same condition as the surrounding properties.  As a result of the STC requirements, very few foreclosure sales are included in the preparation of the Delhi Charter Township assessment rolls. 

What does it all mean?  How can I expect my assessment to change in 2010?

SEV- As stated in the Equalization timetable, for 2010 the time period of the sales study for Residential property assessments is from October 1, 2008 through September 30, 2009.  Sales occurring after October 1, 2009 will not be reviewed until the 2011 assessment cycle.

Using more current sales data means that many property SEV’s in the Township will be reduced for 2010.  The problem however, is that there is limited sales data in the current 12-month study, so many neighborhoods have little or no sales for the Assessor to use for the 2010 assessment roll.  Therefore, many neighborhood adjustments will be based on market activity in the surrounding areas or by using general market trends. 

Taxable- Remember, unless there is a transfer of ownership, the definition of Taxable Value is the lesser of the SEV or the Capped value, which is last year’s Taxable Value (adjusted for physical changes) times the CPI (-0.3% for 2010). 

Since the beginning of Proposal A in 1994, overall increases in SEV have generally been greater than the increase in Taxable Value capped at the CPI.  The longer a property has been owned and capped, the greater the gap between the SEV and Taxable Values.  Since there is a NEGATIVE CPI for 2010 your Taxable Value will likely also DECREASE this year.

LET’S LOOK AT AN ASSESSMENT TOGETHER

EXAMPLE #1:

This example illustrates a property purchased in 2000 and uncapped in 2001.  We will also assume that there has been no demolition or construction during this time.

 

**Taxable Value will never be higher than the SEV.  In the above example the 2008 and 2009 Taxable Values were automatically forced down to equal the current SEV.  This is because the SEV was lower than number produced by the Capped Value formula.  See the Taxable Value section to find the formula to calculate the Capped Value formula. 

Now that you have the math down can you tell me what the above example means?

In May of 2000, this home was sold.  At the time of sale, this home had a current SEV of 53,200 which indicated the value of this home was $106,400 on 12/31/1999 (tax day).  It also had a Taxable Value of 48,564.  This means that the home was worth $106,400 but it was taxed as if it were worth $97,128 (2x taxable value).  This is Proposal A in action.  Prior to Proposal A, homeowners were taxed on the SEV.  Proposal A saved these homeowners money during 2000 by levying the taxes on the Taxable Value. 

In 2001 the property “uncapped” and the 2001 taxable value was equal to the SEV. 

During the years of 2002-2007 the market value of this home increased as reflected in the increase in the SEV.  The Taxable Values also increased, but at a lower rate than the market value.  Over time you can see a gap between the SEV and TV.  This is because the numbers increased at different rates.

If you look at the 2008 assessment you can see that the market conditions changed for the worse.  The 2008 SEV is lower than the 2007 SEV.  This means this home lost property value.  The Taxable Value on this home also was lowered in 2008 because the SEV produced a lower number than the Capped Value calculation.  If the voter authorized tax millage stayed the same as the year before, this property owner’s taxes would have also decreased during 2008. 

The 2009 assessment indicates another property value loss because the 2009 SEV is lower than the 2008 SEV. The Taxable Value was also lowered in 2009 because the SEV produced a lower number than the Capped Value calculation.  If the voter authorized tax millage stayed the same as the year before, this property owner’s taxes would have also decreased during 2009. 

The 2010 assessment indicated yet another property value loss because the 2010 SEV is lower than the 2009 SEV.  The Taxable Value was also lowered in 2010 because the SEV produced a lower number than the Capped Value calculation.  If the voter authorized tax millage stayed the same as the year before, this property owner’s taxes would decreasing for 2010.

EXAMPLE #2:

A special note about the 2010 TAXABLE Values:  There is a NEGATIVE CPI (Consumer Price Index) for 2010.  This means, unless you had a transfer of ownership that uncapped the value or some kind of demolition or construction that affected the TAXABLE Value of your home- your TAXABLE VALUE will most likely be decrease for 2010.  You will probably see this if there is a gap between your SEV and Taxable Value. 

In the example below the homeowner has owned their property for a long time.  There is a gap between the SEV and Taxable Values. 

As you can see by the increase in SEV there was a market value increase from 2005 to 2006.  Over time the market started to decrease in value.  You can see this by looking at the 2007-2010 SEV. 

In this example you can tell that over the years the Taxable Value calculation followed the Capped Value formula, which states that your Taxable Value will be the lower of the SEV or the Capped Value.  We have received a lot of questions about this, but this is Proposal A in action.  YES your SEV can decrease and your Taxable Value CAN increase at the same time.  Let’s follow the math:

 

I just purchased my home.  Shouldn’t the assessed value be half of what I paid?

By state law, a home’s assessed value is not half its purchased price, but half of its market value. 

Section 211.27(5) of Michigan Compiled Law states “Beginning December 31, 1994, the purchase price paid in a transfer of property is NOT the presumptive true cash value of the property transferred.  In determining the true cash value of transferred property, an Assessing Officer shall assess that property using the same valuation method used to value all other property of that same classification in the assessing jurisdiction.” 

For more information, please see the State Tax Commission’s Bulletin No. 19, 1997 on “Illegal Practices of A: “Following Sales” and B: “Assessing over 50%”:

Bulletin 19 of 1997 Illegal Practices of A: Following Sales and B. Assessing over 50%

 

I recently purchased a home.  Will my taxes on this property be about the same amount as the prior owner’s taxes?

Until 1994, property was valued for tax purposes at half its market value.  This is called “State Equalized Value” or SEV.  In 1994 voters passed Proposal A, which limited the growth of property tax assessments.  The formula under Proposal A keeps the Taxable Value of a property from growing as fast as the SEV.  This gap can increase over time.  However, in the year following an eligible transfer of ownership, the Taxable Value is uncapped and is made equal to the SEV, but only for that year following the transfer of ownership. 

When a parcel is uncapped there could be a substantial increase in the tax depending on the difference between the Taxable Value and the State Equalized Value of the property.  See above for Taxable Value Calculation explanation.

 

My neighbor and I have very similar homes.  Why is my tax bill higher than theirs? 

As mentioned above, there are two distinctly different numbers associated with each property.  The SEV represents half the property’s market value and Taxable Value which is a multiplier in your tax bill.  If you have a home that is truly similar to your neighbor’s home your SEV should be about equal to theirs; however, the Taxable Values would probably not be the same. 

Since the passage of Proposal A in 1994 the Taxable Value is used to calculate tax bills.  Each Taxable Value will depend on the Capped Value formula and whether or not there has been a transfer of ownership or a change in the CPI.  The Taxable Value calculation is also subject to any additions and/or losses to the property.   SEV and Taxable Value are not the same and should not be compared when calculating a tax bill. 

The calculation for your tax bill is as follows:

Taxable Value * Voter Approved Millage Rate = Property Tax Bill.

 

How can I find out what information you have on my property or on my neighbor’s property?

Assessment information on your property is public record, and the Assessor’s Office has some of its data available on the internet.  You can access this information free by visiting the following website:

Assessors Online Assessment Info

You may also obtain assessment information by stopping by our office during normal business hours. 

 

Why did my taxes go up this year?

There are several factors that affect your tax rate.  The reason may be because:

1. The Taxable Value of a property is adjusted each year based on the Consumer’s Price Index (CPI).  An increase in taxable value can result in an increase in your taxes.

   Bulletin 10 of 2009 Inflation Rate Multiplier

2. A Millage increase can cause your taxes to increase.  Your tax bill includes voter authorized Millage for City, County, State Education, miscellaneous school taxes, and other voter approved Millages.  Your tax bill is based on your home’s taxable value multiplied by the Millage rate.

3. You purchased a home.  Proposal A, which was passed in 1994, places an annual cap on the growth of property tax assessments; however, when the home is sold, the cap comes off and the assessment reverts to the State Equalized Value (SEV) of the year following an eligible transfer of ownership.

4. You may not be taking advantage of the Principal Residence/Homestead Exemption. 

5. You may have added something new to the property which in turn can increase both the assessed and taxable value of the property, i.e. central air conditioning, new deck or porch, new bathroom, new basement finish, new square footage, new shed, new garage, etc.

 

What can I do if I disagree with the Assessed Value or Taxable Value placed on my property?

Delhi Charter Township has a reappraisal program in place and we periodically visit every property to update our records.  We do this to make sure that our record cards are as reliable as possible and so we can calculate the most accurate assessment possible for you. 

Do we have the correct information to properly value your home?  To check, please visit our website and look over your property information.  If you do not have internet access we encourage you to stop by our office.  

Assessors Online Assessment Info

If there is a difference between what you are telling us and what we have on our record cards we will be happy to correct your information after our office has verified the item(s) in question.  This may include having an Appraiser stop by your property to re-measure or to verify the item(s) in question.

Each year, usually during the last week of February, our Office will mail to the owner of record a Notice of Assessment to the owner of record.  Unfortunately, this form looks intimidating; however, please read it very closely.  This is a very important form and it is our notice to each property owner of record.  This form is sent to property owners that have had a change in their Assessed value or Taxable value for the year.

Assessing Department Contact Information

Delhi Township Assessing Department

2074 Aurelius Rd.
Holt MI  48842

phone: 517-694-1502

fax: 517-694-3316

email

Office hours:  M-F 8:00 a.m. - 5:00 p.m.