Protesting Property Valuations
- Thread starter cowboyjosh
- Start date
I built my grandma a new house in 2000 for just under 85k. It's been assessed at anywhere between 100k and 120k. The neighbors houses are massive piles of ****, but they wont take that into account. Even after producing all of the receipts to verify what it was built for (free labor), they won't budge - gotta pay for new those fancy new schools a couple of miles away.
I can't find any info on how much the property's TV can go below a SEV, if there's ranges, ...?
Additional input on the notice my AV=SEV=TV = 58,300.
Pertaining to SEV: Is there a max that the SEV can decrease to, some percentage, ...?
Reading some info from Michigan.gov website it mentions that the SEV is fixed as set by the county commission and MI tax department, but that the TV can go below the SEV; the TV must go down if the AV goes down as the TV must be less-than-or-equal-to AV.
It's about ~700 in my pocket vs the township's, but I'm getting closer to the position of 'screw the township.'
So much for initials!
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denis4x4
Well-known member
In as much as property taxes are calculated on the accessed value of real property and generally has nothing to do with the selling price, why would you ***** about a drop in valuation? From time to time, assessments will drop and the mill levy will be increased and the property taxes will remain the same or even increase in spite of the drop. When it comes time to refi, the only things the bank looks at is comps of houses sold in the area that are similar. Same goes for setting the selling price.
theoldwizard1
Well-known member
Remember this is MI. We have had some of the worst property valuation decreases in the country.
The short answer is, YES, the local assessment board can do pretty much anything they want.
Can they get away with it. NO. Here what you have to do.
Fill out and file the paper work. Go to your "hearing" (just you and a couple of citizens on the assessment board). My (successful) experience was, find house in your neighborhood that are similar. Take pictures. Look up their assessment. Write down the address and the assessment on the picture. Present this to the board. Ask for similar similar assessment. (In MI, assessor do NOT have access to the inside of your home unless YOU grant it to them.)
IF THEY TURN YOU DOWN, you can appeal to the state. State appeals were running 1-2 years behind a couple of years ago.
I heard of a guy (in Novi ?) who got 3 years worth of assessment overturned by the state. The city owed him several thousand in tax over payment.
FYI - I surveyed my neighborhood and my assessment is $5-10K less than similar houses. It pays to protest if you have a reasonable case.
My son lives less than 1/2 mile away, but in a different city. His house is smaller, 1 less bedroom and in a "less desirable" city. He bought a repo 3 years ago. For 2 years they refused to change the valuation and he did not appeal. This year the dropped it $5k.
theoldwizard1
Well-known member
Worked for me !
Now I am Mr. LowBall !
Neighbor across the street is filing a protest for his valuation this month.
Jeff95TA
Well-known member
Taxes based on a subjective evaulation of property is a horrible way to collect taxes in my opinion. Unfortunately, trying to change that practice is nearly impossible.
Thanks.
Went to mtg, had pictures of bad areas of home, licensed appraisal which was substantially below AV, but my assessment is about $2k above similar properties, ... but the difference is the lady who owned it didn't upgrade-or-maintain it for 45 years.
One problem is only a couple homes of 1425 ground floor sf in area, most 1125 sf, but I have a breezeway, where the ceiling has fallen from roof issues also breezeway's two 5'x10' picture windows that were the original of 1959, ... They seemed to be basing my contesting on their fact that I have this 260 sf breezeway that other property owners don't have so there's nothing I can disputeas I have more sf then everyone else.
Hopefully they'll be just and my issues will be moot, but as we know their ulterior motive is TAXES-IN, not fair-and-equitable.
I suspect if I have to go to the tax tribunal that I'll get an attorney to handle the issue to guarantee that all the i's are dotted and the t's are crossed. I guess I'm relying on what others have noted about the Township's (MI) approach which is arrogance and inequity and the results from my 2010 protest review mtg.. I have a problem where they can put ALL into little boxes of sq feet comparison, without factoring in any other degradations to the home, which is the fast-and-easy-method of denial.
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FXDawg
Well-known member
I have to say my assessed value has dropped every year since 2006 to currently 20% lower than that high. However, my taxes have risen every year. About a 15% rise in the same time frame...and they still cry every year about trying to get us to vote out a clause that won't let them raise property tax more than 2 1/2% per year...the biggest problem as I see it is, we have people managing town money who have either no idea how, or incentives to not be more efficient with our tax dollars.
That's what I'm looking for.
By lowering AV (in Michigan) the TV must be less than or equal to it -- so down goes taxes for my property. Taxes are based on TV not SEV. TV can only increase a max 5% a year where there's no ceiling on AV increases.
So if I got what I requested, which I'm doubtful, they might get flooded with neighbors requesting equity to my AV in 2013, but the township can skyrocket my AV next year to deter such if I get 2012 adjustment which is FINE with me, but they are locked into a 5% increase in TV in 2013 and into the future.
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Here in M is sours the process for me was simple. There is a certain timeframe to appeal. I made an appointment and did my own basic homework. I got online info about my neighbors properties from the local gov website and went down there with pictures and my blueprints. The guy I spoke to was very nice and we discussed. Every time he pulled up a neighbors house to justify his price I was able to rebutt. For instance, my neighbor bought his his in mid build and to this date still has not finished painting the inside. I built my own house with help from my family and was able to provide what my costs were. I also advised that many in my small neighborhood are in the construction business or retired. There are little to no kids in the immediate area. I live across the street from a small lake/pond and the guy brought up sat photos of my home. Although I am fortunate, I told him that was technically not in my sub division. We were the last house built in a 6 house sub division. Across the street is another sub w access to the lake. In all the guy was nice and eager to hear me out. He said they have girls doing the drive bys with general housing knowledge and was surprised more people don't come to them to discuss the assessments. He asked m what I felt it should be, but to by fair I did not give him a number. I made my case and let him decide based off he info I gave him. 3 weeks later I get a letter stating it was reduced 25,000 dollars or about 10% . I thought it was fair.
I have not looked at the rest of your discussion yet but I can tell you the Attorney General has absolutely no jurisdiction over your problem. You must appear before your local Board of Review before you have eligibility to apply for relief at the Michigan Tax Tribunal. That is your next step. Be prepared to wait awhile.
You will be wasting your money paying an attorney for representation.
The assessor was there because the review board needs information that only the assessor can provide. While the tax roll is with the board the assessor has no control over it, only the board does. The assessor has no vote in the decision, and besides the meeting is an open meeting by law so anyone can be there.
You mention that your assessment is only $2k above a comparable that is without any fixing in years. That seems ok to me. You have not mentioned if your overall TV and SEV is higher or lower than your parallel street neighbors. And you do not mention if the other houses are starting at a higher or lower initial SEV. This is all about equalization as required by state law. It may be that you already fall in line with the relative tax rated being assessed to your neighbors.
btw, licensed appraisals are always lower than desired by the homeowner because it does not reflect the other more qualitative benefits of a location and is usually driven by the banks need to protect investment financing.
To say that the taxing authority is only there to get your money is painting with an immensely broad brush.
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Only 2k above other 2-3 homes, but they are castles compared to mine; new double windows, new roofs, ... homes that have been maintained-and-upgraded over the last 45 years (the single lady-owner died in her mid-80s and her daughter sold home vacant 2 years later whom I bought from) this prior owner did not do anything to maintain the property over that span, just let the property deteriorate. So on a sf basis it could drop a couple thousand, but as to the quality comparisons and upkeep it's substantially below the others. New roofs, new furnaces, new windows, ... all require permits in my area and increase the assessment
My av=sev=tv=58,300, no sev is given for other homes on my townships website. The only sev available is mine on my assessment notice.
Been to a review 2 years ago and was not satisfied with the results, but decided to let it lie, figuring it'd work out, but in 2011 I received no notice as I would have contested it, so I don't have much confidence in fairness-and-equality in the process.
Knew no benefits of AG, just wanted another agency to get some information on the record.
The records are public and you may inspect those in the assessors office. Do not FOIA those records because it is a statistic they do not normally keep and the research charge will be more than you want to pay. Write down a few of the addresses and make an appointment with the assessor.
I think you have a case for some relief, good luck. Ask the assessor how close to the 49% minimum your municipality is. If it is low then you will have absolutely no chance of a reduction because the state will raise everyones rates across the board to reach 50% required by the law.
For an update I looked at my township's website this afternoon and the assessed value went down from 58,300 to 53,800.
Yes I checked my 'notice of assessed value' and a printed copy of my file from last week so it has changed a smidgen, no typo.
Printed off the information from the MI tax tribunal website so expect to send in for their review.
So I'll be able to mail it out shortly after I get my letter from the Ypsilanti Township (MI) Assessor's Office.
Yes I checked my 'notice of assessed value' and a printed copy of my file from last week so it has changed a smidgen, no typo.
Printed off the information from the MI tax tribunal website so expect to send in for their review.
So I'll be able to mail it out shortly after I get my letter from the Ypsilanti Township (MI) Assessor's Office.
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ZRX61
Well-known member
I used to have about 50% equity in my place, now I owe twice what it's worth...just deciding when to walk...
truckman5000
Well-known member
- Joined
- Mar 11, 2008
- Messages
- 1,440
And the
I agree.
Im going through the same thing.
Im tring to sell my home. For 300k. I cant find a home thats "comparable" to mine for under 400k.
Im getting offers for 230k, because a 800sq ft home sold 6 months ago!!??
PPL are retarded out there. The housing market changed.
Having a nice home thats 2,000 sq ft. with a big garage, is some how comparable to a dump down the st.
BUT, what kills me, is my tax value is at 220k. So i didnt have to pay $$$on taxes.
Now tring to sell, is killing me.....
So to do it all over againg. Id probelly ***** to the town to raise my $$. If i wanted to sell.
But over the years ive saved 10-20k. On taxes
So it all depends on if you plan to stay at your home forever, and no one can say that. Unless you dont need to work lol.
I had an appraisal done. His number was 280k. (big 2 car garage)
Based off of.
3 homes selling for 350k and up. ( no garages)
1 home selling for a dollor.
I asked about the dollor ( obviously inharited/ ect property)
He said the dollor averadged into the appraisal, and i came up with 280k...haha.
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Charles (in GA)
Well-known member
Not in Georgia. However a building permit might. Building permits and tax appraisers do not have any ties under the law, but in most counties, a copy of the permit goes to the appraisers so they can discover otherwise unreported improvements.
In GA the property owner is required by law each year, to "return" his property to the county. ie: file a return that declared what real improvements are located on the property and what the value of the property is. Few do, though we are seeing more than in the past.
https://etax.dor.ga.gov/ptd/adm/forms/pt50r/index.aspx
Charles
Under the 'Terms of Sale' in the 'Sales INFORMATION' section of a property assessment there is a home transferred from the 'Habitat For Humanity' to a homeowner and it was noted as 'Not a Market Sale' for $100,000 in 6/2011, where 'Habitat For Humanity' purchased the property (Foreclosure) a year earlier (7/10) for $39,600. The township has the property's 2012 AV at $37,000 (or FMV at $74,000), which is clearly out of whack with the $100,000 2011 owner transfer of $100,000 which is noted as a 'NOT A MARKET SALE.'
I'm going to a tax tribune meeting for 2012, I assume in spring/summer 2013, and this property is listed as a 2011 'SALE' that clearly distorts the actual values of home sold in my area in 2011 that range from $44,000 to $80,000 that are the basis for sales ending 12/31/11 (it's sf is less than most homes, acreage is smaller, ...).
I'm going to a tax tribune meeting for 2012, I assume in spring/summer 2013, and this property is listed as a 2011 'SALE' that clearly distorts the actual values of home sold in my area in 2011 that range from $44,000 to $80,000 that are the basis for sales ending 12/31/11 (it's sf is less than most homes, acreage is smaller, ...).
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darkk
Well-known member
They could value my home anywhere between a brown paper bag and cardboard box, as long as the taxes are low who cares?
Charles (in GA)
Well-known member
Call your Assessors office and ask them, they will tell you what is used and what is not.
Short answer, in Georgia, thats a NO, the Non-Market sales cannot be used as part of the process for determining values or in a sales ratio study. I would assume thats true in your state also. I don't see how they could use it. We see lots of non-market transactions. Non-Market means it does not meet the criteria for being a "fair market transaction" or a "arms length transaction".
From the Georgia Code:
"Arm's length, bona fide sale" means a transaction which has occurred in good faith without fraud or deceit carried out by unrelated or unaffiliated parties, as by a willing buyer and a willing seller, each acting in his or her own self-interest, including but not limited to a distress sale, short sale, bank sale, or sale at public auction.
"Fair market value of property" means the amount a knowledgeable buyer would pay for the property and a willing seller would accept for the property at an arm's length, bona fide sale.
Charles
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Charles (in GA)
Well-known member
From the Michigan Code.
http://www.legislature.mi.gov/documents/mcl/pdf/mcl-act-206-of-1893.pdf
211.27 “True cash value” defined; considerations in determining value; indicating
exclusions from true cash value on assessment roll; subsection (2) applicable only to
residential property; repairs considered normal maintenance; exclusions from real estate
sales data; “present economic income” defined; applicability of subsection (4); "nonprofit
cooperative housing corporation" defined; value of transferred property; “purchase price”
defined; additional definitions; "standard tool" defined.
Sec. 27. (1) As used in this act, "true cash value" means the usual selling price at the place where the
property to which the term is applied is at the time of assessment, being the price that could be obtained for
the property at private sale, and not at auction sale except as otherwise provided in this section, or at forced
sale. The usual selling price may include sales at public auction held by a nongovernmental agency or person
if those sales have become a common method of acquisition in the jurisdiction for the class of property being
valued. The usual selling price does not include sales at public auction if the sale is part of a liquidation of the
seller's assets in a bankruptcy proceeding or if the seller is unable to use common marketing techniques to
obtain the usual selling price for the property. A sale or other disposition by this state or an agency or political
subdivision of this state of land acquired for delinquent taxes or an appraisal made in connection with the sale
or other disposition or the value attributed to the property of regulated public utilities by a governmental
regulatory agency for rate-making purposes is not controlling evidence of true cash value for assessment
purposes. In determining the true cash value, the assessor shall also consider the advantages and
disadvantages of location; quality of soil; zoning; existing use; present economic income of structures,
including farm structures; present economic income of land if the land is being farmed or otherwise put to
income producing use; quantity and value of standing timber; water power and privileges; and mines,
minerals, quarries, or other valuable deposits known to be available in the land and their value. In determining
the true cash value of personal property owned by an electric utility cooperative, the assessor shall consider
the number of kilowatt hours of electricity sold per mile of distribution line compared to the average number
of kilowatt hours of electricity sold per mile of distribution line for all electric utilities.
(2) 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. For the purpose of implementing this subsection, the assessor shall not increase the construction quality classification or reduce the effective age for depreciation purposes, except if the appraisal
of the property was erroneous before nonconsideration of the normal repair, replacement, or maintenance, and
shall not assign an economic condition factor to the property that differs from the economic condition factor
assigned to similar properties as defined by appraisal procedures applied in the jurisdiction. The increase in
value attributable to the items included in subdivisions (a) to (o) that is known to the assessor and excluded
from true cash value shall be indicated on the assessment roll. This subsection applies only to residential
property. The following repairs are considered normal maintenance if they are not part of a structural addition
or completion:
(a) Outside painting.
(b) Repairing or replacing siding, roof, porches, steps, sidewalks, or drives.
(c) Repainting, repairing, or replacing existing masonry.
(d) Replacing awnings.
(e) Adding or replacing gutters and downspouts.
(f) Replacing storm windows or doors.
(g) Insulating or weatherstripping.
(h) Complete rewiring.
(i) Replacing plumbing and light fixtures.
(j) Replacing a furnace with a new furnace of the same type or replacing an oil or gas burner.
(k) Repairing plaster, inside painting, or other redecorating.
(l) New ceiling, wall, or floor surfacing.
(m) Removing partitions to enlarge rooms.
Replacing an automatic hot water heater.
(o) Replacing dated interior woodwork.
(3) A city or township assessor, a county equalization department, or the state tax commission before
utilizing real estate sales data on real property purchases, including purchases by land contract, to determine
assessments or in making sales ratio studies to assess property or equalize assessments shall exclude from the
sales data the following amounts allowed by subdivisions (a), (b), and (c) to the extent that the amounts are
included in the real property purchase price and are so identified in the real estate sales data or certified to the
assessor as provided in subdivision (d):
(a) Amounts paid for obtaining financing of the purchase price of the property or the last conveyance of the
property.
(b) Amounts attributable to personal property that were included in the purchase price of the property in
the last conveyance of the property.
(c) Amounts paid for surveying the property pursuant to the last conveyance of the property. The
legislature may require local units of government, including school districts, to submit reports of revenue lost
under subdivisions (a) and (b) and this subdivision so that the state may reimburse those units for that lost
revenue.
(d) The purchaser of real property, including a purchaser by land contract, may file with the assessor of the
city or township in which the property is located 2 copies of the purchase agreement or of an affidavit that
identifies the amount, if any, for each item listed in subdivisions (a) to (c). One copy shall be forwarded by
the assessor to the county equalization department. The affidavit shall be prescribed by the state tax
commission.
(4) As used in subsection (1), "present economic income" means for leased or rented property the ordinary,
general, and usual economic return realized from the lease or rental of property negotiated under current,
contemporary conditions between parties equally knowledgeable and familiar with real estate values. The
actual income generated by the lease or rental of property is not the controlling indicator of its true cash value
in all cases. This subsection does not apply to property subject to a lease entered into before January 1, 1984
for which the terms of the lease governing the rental rate or tax liability have not been renegotiated after
December 31, 1983. This subsection does not apply to a nonprofit housing cooperative subject to regulatory
agreements between the state or federal government entered into before January 1, 1984. As used in this
subsection, "nonprofit cooperative housing corporation" means a nonprofit cooperative housing corporation
that is engaged in providing housing services to its stockholders and members and that does not pay dividends
or interest upon stock or membership investment but that does distribute all earnings to its stockholders or
members.
(5) Except as otherwise provided in subsection (6), 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. As used in this subsection and subsection (6), "purchase price" means the total consideration agreed to in an arms-length transaction and not
at a forced sale paid by the purchaser of the property, stated in dollars, whether or not paid in dollars.
(6) The purchase price paid in a transfer of eligible nonprofit housing property from a charitable nonprofit
housing organization to a low-income person that occurs after December 31, 2010 is the presumptive true
cash value of the eligible nonprofit housing property transferred. In the year immediately succeeding the year
in which the transfer of eligible nonprofit housing property occurs and each year thereafter, the taxable value
of the eligible nonprofit housing property shall be adjusted as provided under section 27a.
http://www.legislature.mi.gov/documents/mcl/pdf/mcl-act-206-of-1893.pdf
211.27 “True cash value” defined; considerations in determining value; indicating
exclusions from true cash value on assessment roll; subsection (2) applicable only to
residential property; repairs considered normal maintenance; exclusions from real estate
sales data; “present economic income” defined; applicability of subsection (4); "nonprofit
cooperative housing corporation" defined; value of transferred property; “purchase price”
defined; additional definitions; "standard tool" defined.
Sec. 27. (1) As used in this act, "true cash value" means the usual selling price at the place where the
property to which the term is applied is at the time of assessment, being the price that could be obtained for
the property at private sale, and not at auction sale except as otherwise provided in this section, or at forced
sale. The usual selling price may include sales at public auction held by a nongovernmental agency or person
if those sales have become a common method of acquisition in the jurisdiction for the class of property being
valued. The usual selling price does not include sales at public auction if the sale is part of a liquidation of the
seller's assets in a bankruptcy proceeding or if the seller is unable to use common marketing techniques to
obtain the usual selling price for the property. A sale or other disposition by this state or an agency or political
subdivision of this state of land acquired for delinquent taxes or an appraisal made in connection with the sale
or other disposition or the value attributed to the property of regulated public utilities by a governmental
regulatory agency for rate-making purposes is not controlling evidence of true cash value for assessment
purposes. In determining the true cash value, the assessor shall also consider the advantages and
disadvantages of location; quality of soil; zoning; existing use; present economic income of structures,
including farm structures; present economic income of land if the land is being farmed or otherwise put to
income producing use; quantity and value of standing timber; water power and privileges; and mines,
minerals, quarries, or other valuable deposits known to be available in the land and their value. In determining
the true cash value of personal property owned by an electric utility cooperative, the assessor shall consider
the number of kilowatt hours of electricity sold per mile of distribution line compared to the average number
of kilowatt hours of electricity sold per mile of distribution line for all electric utilities.
(2) 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. For the purpose of implementing this subsection, the assessor shall not increase the construction quality classification or reduce the effective age for depreciation purposes, except if the appraisal
of the property was erroneous before nonconsideration of the normal repair, replacement, or maintenance, and
shall not assign an economic condition factor to the property that differs from the economic condition factor
assigned to similar properties as defined by appraisal procedures applied in the jurisdiction. The increase in
value attributable to the items included in subdivisions (a) to (o) that is known to the assessor and excluded
from true cash value shall be indicated on the assessment roll. This subsection applies only to residential
property. The following repairs are considered normal maintenance if they are not part of a structural addition
or completion:
(a) Outside painting.
(b) Repairing or replacing siding, roof, porches, steps, sidewalks, or drives.
(c) Repainting, repairing, or replacing existing masonry.
(d) Replacing awnings.
(e) Adding or replacing gutters and downspouts.
(f) Replacing storm windows or doors.
(g) Insulating or weatherstripping.
(h) Complete rewiring.
(i) Replacing plumbing and light fixtures.
(j) Replacing a furnace with a new furnace of the same type or replacing an oil or gas burner.
(k) Repairing plaster, inside painting, or other redecorating.
(l) New ceiling, wall, or floor surfacing.
(m) Removing partitions to enlarge rooms.
Replacing an automatic hot water heater.(o) Replacing dated interior woodwork.
(3) A city or township assessor, a county equalization department, or the state tax commission before
utilizing real estate sales data on real property purchases, including purchases by land contract, to determine
assessments or in making sales ratio studies to assess property or equalize assessments shall exclude from the
sales data the following amounts allowed by subdivisions (a), (b), and (c) to the extent that the amounts are
included in the real property purchase price and are so identified in the real estate sales data or certified to the
assessor as provided in subdivision (d):
(a) Amounts paid for obtaining financing of the purchase price of the property or the last conveyance of the
property.
(b) Amounts attributable to personal property that were included in the purchase price of the property in
the last conveyance of the property.
(c) Amounts paid for surveying the property pursuant to the last conveyance of the property. The
legislature may require local units of government, including school districts, to submit reports of revenue lost
under subdivisions (a) and (b) and this subdivision so that the state may reimburse those units for that lost
revenue.
(d) The purchaser of real property, including a purchaser by land contract, may file with the assessor of the
city or township in which the property is located 2 copies of the purchase agreement or of an affidavit that
identifies the amount, if any, for each item listed in subdivisions (a) to (c). One copy shall be forwarded by
the assessor to the county equalization department. The affidavit shall be prescribed by the state tax
commission.
(4) As used in subsection (1), "present economic income" means for leased or rented property the ordinary,
general, and usual economic return realized from the lease or rental of property negotiated under current,
contemporary conditions between parties equally knowledgeable and familiar with real estate values. The
actual income generated by the lease or rental of property is not the controlling indicator of its true cash value
in all cases. This subsection does not apply to property subject to a lease entered into before January 1, 1984
for which the terms of the lease governing the rental rate or tax liability have not been renegotiated after
December 31, 1983. This subsection does not apply to a nonprofit housing cooperative subject to regulatory
agreements between the state or federal government entered into before January 1, 1984. As used in this
subsection, "nonprofit cooperative housing corporation" means a nonprofit cooperative housing corporation
that is engaged in providing housing services to its stockholders and members and that does not pay dividends
or interest upon stock or membership investment but that does distribute all earnings to its stockholders or
members.
(5) Except as otherwise provided in subsection (6), 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. As used in this subsection and subsection (6), "purchase price" means the total consideration agreed to in an arms-length transaction and not
at a forced sale paid by the purchaser of the property, stated in dollars, whether or not paid in dollars.
(6) The purchase price paid in a transfer of eligible nonprofit housing property from a charitable nonprofit
housing organization to a low-income person that occurs after December 31, 2010 is the presumptive true
cash value of the eligible nonprofit housing property transferred. In the year immediately succeeding the year
in which the transfer of eligible nonprofit housing property occurs and each year thereafter, the taxable value
of the eligible nonprofit housing property shall be adjusted as provided under section 27a.
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Charles (in GA)
Well-known member
Above continued:
As used in this
subsection:
(a) "Charitable nonprofit housing organization" means a charitable nonprofit organization the primary
purpose of which is the construction or renovation of residential housing for conveyance to a low-income
person.
(b) "Eligible nonprofit housing property" means property owned by a charitable nonprofit housing
organization, the ownership of which the charitable nonprofit housing organization intends to transfer to a
low-income person after construction or renovation of the property is completed.
(c) "Family income" and "statewide median gross income" mean those terms as defined in section 11 of the
state housing development authority act of 1966, 1966 PA 346, MCL 125.1411.
(d) "Low-income person" means a person with a family income of not more than 60% of the statewide
median gross income who is eligible to participate in the charitable nonprofit housing organization's program
based on criteria established by the charitable nonprofit housing organization.
(7) For purposes of a statement submitted under section 19, the true cash value of a standard tool is the net
book value of that standard tool as of December 31 in each tax year as determined using generally accepted
accounting principles in a manner consistent with the established depreciation method used by the person
submitting that statement. The net book value of a standard tool for federal income tax purposes is not the
presumptive true cash value of that standard tool. As used in this subsection, "standard tool" means that term
as defined in section 9b.
As used in this
subsection:
(a) "Charitable nonprofit housing organization" means a charitable nonprofit organization the primary
purpose of which is the construction or renovation of residential housing for conveyance to a low-income
person.
(b) "Eligible nonprofit housing property" means property owned by a charitable nonprofit housing
organization, the ownership of which the charitable nonprofit housing organization intends to transfer to a
low-income person after construction or renovation of the property is completed.
(c) "Family income" and "statewide median gross income" mean those terms as defined in section 11 of the
state housing development authority act of 1966, 1966 PA 346, MCL 125.1411.
(d) "Low-income person" means a person with a family income of not more than 60% of the statewide
median gross income who is eligible to participate in the charitable nonprofit housing organization's program
based on criteria established by the charitable nonprofit housing organization.
(7) For purposes of a statement submitted under section 19, the true cash value of a standard tool is the net
book value of that standard tool as of December 31 in each tax year as determined using generally accepted
accounting principles in a manner consistent with the established depreciation method used by the person
submitting that statement. The net book value of a standard tool for federal income tax purposes is not the
presumptive true cash value of that standard tool. As used in this subsection, "standard tool" means that term
as defined in section 9b.
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211.27a Property tax assessment; determining taxable value; adjustment; exception;
"transfer of ownership" defined; qualified agricultural property; notice of transfer of
property; applicability of subsection (10); definitions.
Sec. 27a. (1) Except as otherwise provided in this section, property shall be assessed at 50% of its true cash
value under section 3 of article IX of the state constitution of 1963.
(2) Except as otherwise provided in subsection (3), for taxes levied in 1995 and for each year after 1995,
the taxable value of each parcel of property is the lesser of the following:
(a) The property's taxable value in the immediately preceding year minus any losses, multiplied by the
lesser of 1.05 or the inflation rate, plus all additions. For taxes levied in 1995, the property's taxable value in
the immediately preceding year is the property's state equalized valuation in 1994.
(b) The property's current state equalized valuation.
(3) Upon a transfer of ownership of property after 1994, the property's taxable value for the calendar year
following the year of the transfer is the property's state equalized valuation for the calendar year following the
transfer.
(4) If the taxable value of property is adjusted under subsection (3), a subsequent increase in the property's
taxable value is subject to the limitation set forth in subsection (2) until a subsequent transfer of ownership
occurs. If the taxable value of property is adjusted under subsection (3) and the assessor determines that there
had not been a transfer of ownership, the taxable value of the property shall be adjusted at the July or
December board of review. Notwithstanding the limitation provided in section 53b(1) on the number of years
for which a correction may be made, the July or December board of review may adjust the taxable value of
property under this subsection for the current year and for the 3 immediately preceding calendar years. A corrected tax bill shall be issued for each tax year for which the taxable value is adjusted by the local tax
collecting unit if the local tax collecting unit has possession of the tax roll or by the county treasurer if the
county has possession of the tax roll. For purposes of section 53b, an adjustment under this subsection shall
be considered the correction of a clerical error.
(5) Assessment of property, as required in this section and section 27, is inapplicable to the assessment of
property subject to the levy of ad valorem taxes within voted tax limitation increases to pay principal and
interest on limited tax bonds issued by any governmental unit, including a county, township, community
college district, or school district, before January 1, 1964, if the assessment required to be made under this act
would be less than the assessment as state equalized prevailing on the property at the time of the issuance of
the bonds. This inapplicability shall continue until levy of taxes to pay principal and interest on the bonds is
no longer required. The assessment of property required by this act shall be applicable for all other purposes.
(6) As used in this act, "transfer of ownership" means the conveyance of title to or a present interest in
property, including the beneficial use of the property, the value of which is substantially equal to the value of
the fee interest. Transfer of ownership of property includes, but is not limited to, the following:
(a) A conveyance by deed.
(b) A conveyance by land contract. The taxable value of property conveyed by a land contract executed
after December 31, 1994 shall be adjusted under subsection (3) for the calendar year following the year in
which the contract is entered into and shall not be subsequently adjusted under subsection (3) when the deed
conveying title to the property is recorded in the office of the register of deeds in the county in which the
property is located.
(c) A conveyance to a trust after December 31, 1994, except if the settlor or the settlor's spouse, or both,
conveys the property to the trust and the sole present beneficiary or beneficiaries are the settlor or the settlor's
spouse, or both.
(d) A conveyance by distribution from a trust, except if the distributee is the sole present beneficiary or the
spouse of the sole present beneficiary, or both.
(e) A change in the sole present beneficiary or beneficiaries of a trust, except a change that adds or
substitutes the spouse of the sole present beneficiary.
(f) A conveyance by distribution under a will or by intestate succession, except if the distributee is the
decedent's spouse.
(g) A conveyance by lease if the total duration of the lease, including the initial term and all options for
renewal, is more than 35 years or the lease grants the lessee a bargain purchase option. As used in this
subdivision, "bargain purchase option" means the right to purchase the property at the termination of the lease
for not more than 80% of the property's projected true cash value at the termination of the lease. After
December 31, 1994, the taxable value of property conveyed by a lease with a total duration of more than 35
years or with a bargain purchase option shall be adjusted under subsection (3) for the calendar year following
the year in which the lease is entered into. This subdivision does not apply to personal property except
buildings described in section 14(6) and personal property described in section 8(h), (i), and (j). This
subdivision does not apply to that portion of the property not subject to the leasehold interest conveyed.
(h) Except as otherwise provided in this subdivision, a conveyance of an ownership interest in a
corporation, partnership, sole proprietorship, limited liability company, limited liability partnership, or other
legal entity if the ownership interest conveyed is more than 50% of the corporation, partnership, sole
proprietorship, limited liability company, limited liability partnership, or other legal entity. Unless notification
is provided under subsection (10), the corporation, partnership, sole proprietorship, limited liability company,
limited liability partnership, or other legal entity shall notify the assessing officer on a form provided by the
state tax commission not more than 45 days after a conveyance of an ownership interest that constitutes a
transfer of ownership under this subdivision. Both of the following apply to a corporation subject to 1897 PA
230, MCL 455.1 to 455.24:
(i) A transfer of stock of the corporation is a transfer of ownership only with respect to the real property
that is assessed to the transferor lessee stockholder.
(ii) A cumulative conveyance of more than 50% of the corporation's stock does not constitute a transfer of
ownership of the corporation's real property.
(i) A transfer of property held as a tenancy in common, except that portion of the property not subject to
the ownership interest conveyed.
(j) A conveyance of an ownership interest in a cooperative housing corporation, except that portion of the
property not subject to the ownership interest conveyed.
(7) Transfer of ownership does not include the following:
(a) The transfer of property from 1 spouse to the other spouse or from a decedent to a surviving spouse.
(b) A transfer from a husband, a wife, or a husband and wife creating or disjoining a tenancy by the
"transfer of ownership" defined; qualified agricultural property; notice of transfer of
property; applicability of subsection (10); definitions.
Sec. 27a. (1) Except as otherwise provided in this section, property shall be assessed at 50% of its true cash
value under section 3 of article IX of the state constitution of 1963.
(2) Except as otherwise provided in subsection (3), for taxes levied in 1995 and for each year after 1995,
the taxable value of each parcel of property is the lesser of the following:
(a) The property's taxable value in the immediately preceding year minus any losses, multiplied by the
lesser of 1.05 or the inflation rate, plus all additions. For taxes levied in 1995, the property's taxable value in
the immediately preceding year is the property's state equalized valuation in 1994.
(b) The property's current state equalized valuation.
(3) Upon a transfer of ownership of property after 1994, the property's taxable value for the calendar year
following the year of the transfer is the property's state equalized valuation for the calendar year following the
transfer.
(4) If the taxable value of property is adjusted under subsection (3), a subsequent increase in the property's
taxable value is subject to the limitation set forth in subsection (2) until a subsequent transfer of ownership
occurs. If the taxable value of property is adjusted under subsection (3) and the assessor determines that there
had not been a transfer of ownership, the taxable value of the property shall be adjusted at the July or
December board of review. Notwithstanding the limitation provided in section 53b(1) on the number of years
for which a correction may be made, the July or December board of review may adjust the taxable value of
property under this subsection for the current year and for the 3 immediately preceding calendar years. A corrected tax bill shall be issued for each tax year for which the taxable value is adjusted by the local tax
collecting unit if the local tax collecting unit has possession of the tax roll or by the county treasurer if the
county has possession of the tax roll. For purposes of section 53b, an adjustment under this subsection shall
be considered the correction of a clerical error.
(5) Assessment of property, as required in this section and section 27, is inapplicable to the assessment of
property subject to the levy of ad valorem taxes within voted tax limitation increases to pay principal and
interest on limited tax bonds issued by any governmental unit, including a county, township, community
college district, or school district, before January 1, 1964, if the assessment required to be made under this act
would be less than the assessment as state equalized prevailing on the property at the time of the issuance of
the bonds. This inapplicability shall continue until levy of taxes to pay principal and interest on the bonds is
no longer required. The assessment of property required by this act shall be applicable for all other purposes.
(6) As used in this act, "transfer of ownership" means the conveyance of title to or a present interest in
property, including the beneficial use of the property, the value of which is substantially equal to the value of
the fee interest. Transfer of ownership of property includes, but is not limited to, the following:
(a) A conveyance by deed.
(b) A conveyance by land contract. The taxable value of property conveyed by a land contract executed
after December 31, 1994 shall be adjusted under subsection (3) for the calendar year following the year in
which the contract is entered into and shall not be subsequently adjusted under subsection (3) when the deed
conveying title to the property is recorded in the office of the register of deeds in the county in which the
property is located.
(c) A conveyance to a trust after December 31, 1994, except if the settlor or the settlor's spouse, or both,
conveys the property to the trust and the sole present beneficiary or beneficiaries are the settlor or the settlor's
spouse, or both.
(d) A conveyance by distribution from a trust, except if the distributee is the sole present beneficiary or the
spouse of the sole present beneficiary, or both.
(e) A change in the sole present beneficiary or beneficiaries of a trust, except a change that adds or
substitutes the spouse of the sole present beneficiary.
(f) A conveyance by distribution under a will or by intestate succession, except if the distributee is the
decedent's spouse.
(g) A conveyance by lease if the total duration of the lease, including the initial term and all options for
renewal, is more than 35 years or the lease grants the lessee a bargain purchase option. As used in this
subdivision, "bargain purchase option" means the right to purchase the property at the termination of the lease
for not more than 80% of the property's projected true cash value at the termination of the lease. After
December 31, 1994, the taxable value of property conveyed by a lease with a total duration of more than 35
years or with a bargain purchase option shall be adjusted under subsection (3) for the calendar year following
the year in which the lease is entered into. This subdivision does not apply to personal property except
buildings described in section 14(6) and personal property described in section 8(h), (i), and (j). This
subdivision does not apply to that portion of the property not subject to the leasehold interest conveyed.
(h) Except as otherwise provided in this subdivision, a conveyance of an ownership interest in a
corporation, partnership, sole proprietorship, limited liability company, limited liability partnership, or other
legal entity if the ownership interest conveyed is more than 50% of the corporation, partnership, sole
proprietorship, limited liability company, limited liability partnership, or other legal entity. Unless notification
is provided under subsection (10), the corporation, partnership, sole proprietorship, limited liability company,
limited liability partnership, or other legal entity shall notify the assessing officer on a form provided by the
state tax commission not more than 45 days after a conveyance of an ownership interest that constitutes a
transfer of ownership under this subdivision. Both of the following apply to a corporation subject to 1897 PA
230, MCL 455.1 to 455.24:
(i) A transfer of stock of the corporation is a transfer of ownership only with respect to the real property
that is assessed to the transferor lessee stockholder.
(ii) A cumulative conveyance of more than 50% of the corporation's stock does not constitute a transfer of
ownership of the corporation's real property.
(i) A transfer of property held as a tenancy in common, except that portion of the property not subject to
the ownership interest conveyed.
(j) A conveyance of an ownership interest in a cooperative housing corporation, except that portion of the
property not subject to the ownership interest conveyed.
(7) Transfer of ownership does not include the following:
(a) The transfer of property from 1 spouse to the other spouse or from a decedent to a surviving spouse.
(b) A transfer from a husband, a wife, or a husband and wife creating or disjoining a tenancy by the
Charles (in GA)
Well-known member
Above continued:
entireties in the grantors or the grantor and his or her spouse.
(c) A transfer of that portion of property subject to a life estate or life lease retained by the transferor, until
expiration or termination of the life estate or life lease. That portion of property transferred that is not subject
to a life lease shall be adjusted under subsection (3).
(d) A transfer through foreclosure or forfeiture of a recorded instrument under chapter 31, 32, or 57 of the
revised judicature act of 1961, 1961 PA 236, MCL 600.3101 to 600.3285 and MCL 600.5701 to 600.5759, or
through deed or conveyance in lieu of a foreclosure or forfeiture, until the mortgagee or land contract vendor
subsequently transfers the property. If a mortgagee does not transfer the property within 1 year of the
expiration of any applicable redemption period, the property shall be adjusted under subsection (3).
(e) A transfer by redemption by the person to whom taxes are assessed of property previously sold for
delinquent taxes.
(f) A conveyance to a trust if the settlor or the settlor's spouse, or both, conveys the property to the trust
and the sole present beneficiary of the trust is the settlor or the settlor's spouse, or both.
(g) A transfer pursuant to a judgment or order of a court of record making or ordering a transfer, unless a
specific monetary consideration is specified or ordered by the court for the transfer.
(h) A transfer creating or terminating a joint tenancy between 2 or more persons if at least 1 of the persons
was an original owner of the property before the joint tenancy was initially created and, if the property is held
as a joint tenancy at the time of conveyance, at least 1 of the persons was a joint tenant when the joint tenancy
was initially created and that person has remained a joint tenant since the joint tenancy was initially created. A
joint owner at the time of the last transfer of ownership of the property is an original owner of the property.
For purposes of this subdivision, a person is an original owner of property owned by that person's spouse.
(i) A transfer for security or an assignment or discharge of a security interest.
(j) A transfer of real property or other ownership interests among members of an affiliated group. As used
in this subsection, "affiliated group" means 1 or more corporations connected by stock ownership to a
common parent corporation. Upon request by the state tax commission, a corporation shall furnish proof
within 45 days that a transfer meets the requirements of this subdivision. A corporation that fails to comply
with a request by the state tax commission under this subdivision is subject to a fine of $200.00.
(k) Normal public trading of shares of stock or other ownership interests that, over any period of time,
cumulatively represent more than 50% of the total ownership interest in a corporation or other legal entity and
are traded in multiple transactions involving unrelated individuals, institutions, or other legal entities.
(l) A transfer of real property or other ownership interests among corporations, partnerships, limited
liability companies, limited liability partnerships, or other legal entities if the entities involved are commonly
controlled. Upon request by the state tax commission, a corporation, partnership, limited liability company,
limited liability partnership, or other legal entity shall furnish proof within 45 days that a transfer meets the
requirements of this subdivision. A corporation, partnership, limited liability company, limited liability
partnership, or other legal entity that fails to comply with a request by the state tax commission under this
subdivision is subject to a fine of $200.00.
(m) A direct or indirect transfer of real property or other ownership interests resulting from a transaction
that qualifies as a tax-free reorganization under section 368 of the internal revenue code, 26 USC 368. Upon
request by the state tax commission, a property owner shall furnish proof within 45 days that a transfer meets
the requirements of this subdivision. A property owner who fails to comply with a request by the state tax
commission under this subdivision is subject to a fine of $200.00.
A transfer of qualified agricultural property, if the person to whom the qualified agricultural property is
transferred files an affidavit with the assessor of the local tax collecting unit in which the qualified
agricultural property is located and with the register of deeds for the county in which the qualified agricultural
property is located attesting that the qualified agricultural property shall remain qualified agricultural
property. The affidavit under this subdivision shall be in a form prescribed by the department of treasury. An
owner of qualified agricultural property shall inform a prospective buyer of that qualified agricultural
property that the qualified agricultural property is subject to the recapture tax provided in the agricultural
property recapture act, 2000 PA 261, MCL 211.1001 to 211.1007, if the qualified agricultural property is
converted by a change in use. If property ceases to be qualified agricultural property at any time after being
transferred, all of the following shall occur:
(i) The taxable value of that property shall be adjusted under subsection (3) as of the December 31 in the
year that the property ceases to be qualified agricultural property.
(ii) The property is subject to the recapture tax provided for under the agricultural property recapture act,
2000 PA 261, MCL 211.1001 to 211.1007.
(o) A transfer of qualified forest property, if the person to whom the qualified forest property is transferred
files an affidavit with the assessor of the local tax collecting unit in which the qualified forest property is located and with the register of deeds for the county in which the qualified forest property is located attesting
that the qualified forest property shall remain qualified forest property. The affidavit under this subdivision
shall be in a form prescribed by the department of treasury. An owner of qualified forest property shall inform
a prospective buyer of that qualified forest property that the qualified forest property is subject to the
recapture tax provided in the qualified forest property recapture tax act, 2006 PA 379, MCL 211.1031 to
211.1036, if the qualified forest property is converted by a change in use. If property ceases to be qualified
forest property at any time after being transferred, all of the following shall occur:
(i) The taxable value of that property shall be adjusted under subsection (3) as of the December 31 in the
year that the property ceases to be qualified forest property.
(ii) The property is subject to the recapture tax provided for under the qualified forest property recapture
tax act, 2006 PA 379, MCL 211.1031 to 211.1036.
(p) Beginning on the effective date of the amendatory act that added this subdivision, a transfer of land, but
not buildings or structures located on the land, which meets 1 or more of the following requirements:
(i) The land is subject to a conservation easement under subpart 11 of part 21 of the natural resources and
environmental protection act, 1994 PA 451, MCL 324.2140 to 324.2144. As used in this subparagraph,
"conservation easement" means that term as defined in section 2140 of the natural resources and
environmental protection act, 1994 PA 451, MCL 324.2140.
(ii) A transfer of ownership of the land or a transfer of an interest in the land is eligible for a deduction as a
qualified conservation contribution under section 170(h) of the internal revenue code, 26 USC 170.
(q) A transfer of real property or other ownership interests resulting from a consolidation or merger of a
domestic nonprofit corporation that is a boy or girl scout or camp fire girls organization, a 4-H club or
foundation, a young men's Christian association, or a young women's Christian association and at least 50%
of the members of that organization or association are residents of this state.
(r) A change to the assessment roll or tax roll resulting from the application of section 16a of 1897 PA 230,
MCL 455.16a.
entireties in the grantors or the grantor and his or her spouse.
(c) A transfer of that portion of property subject to a life estate or life lease retained by the transferor, until
expiration or termination of the life estate or life lease. That portion of property transferred that is not subject
to a life lease shall be adjusted under subsection (3).
(d) A transfer through foreclosure or forfeiture of a recorded instrument under chapter 31, 32, or 57 of the
revised judicature act of 1961, 1961 PA 236, MCL 600.3101 to 600.3285 and MCL 600.5701 to 600.5759, or
through deed or conveyance in lieu of a foreclosure or forfeiture, until the mortgagee or land contract vendor
subsequently transfers the property. If a mortgagee does not transfer the property within 1 year of the
expiration of any applicable redemption period, the property shall be adjusted under subsection (3).
(e) A transfer by redemption by the person to whom taxes are assessed of property previously sold for
delinquent taxes.
(f) A conveyance to a trust if the settlor or the settlor's spouse, or both, conveys the property to the trust
and the sole present beneficiary of the trust is the settlor or the settlor's spouse, or both.
(g) A transfer pursuant to a judgment or order of a court of record making or ordering a transfer, unless a
specific monetary consideration is specified or ordered by the court for the transfer.
(h) A transfer creating or terminating a joint tenancy between 2 or more persons if at least 1 of the persons
was an original owner of the property before the joint tenancy was initially created and, if the property is held
as a joint tenancy at the time of conveyance, at least 1 of the persons was a joint tenant when the joint tenancy
was initially created and that person has remained a joint tenant since the joint tenancy was initially created. A
joint owner at the time of the last transfer of ownership of the property is an original owner of the property.
For purposes of this subdivision, a person is an original owner of property owned by that person's spouse.
(i) A transfer for security or an assignment or discharge of a security interest.
(j) A transfer of real property or other ownership interests among members of an affiliated group. As used
in this subsection, "affiliated group" means 1 or more corporations connected by stock ownership to a
common parent corporation. Upon request by the state tax commission, a corporation shall furnish proof
within 45 days that a transfer meets the requirements of this subdivision. A corporation that fails to comply
with a request by the state tax commission under this subdivision is subject to a fine of $200.00.
(k) Normal public trading of shares of stock or other ownership interests that, over any period of time,
cumulatively represent more than 50% of the total ownership interest in a corporation or other legal entity and
are traded in multiple transactions involving unrelated individuals, institutions, or other legal entities.
(l) A transfer of real property or other ownership interests among corporations, partnerships, limited
liability companies, limited liability partnerships, or other legal entities if the entities involved are commonly
controlled. Upon request by the state tax commission, a corporation, partnership, limited liability company,
limited liability partnership, or other legal entity shall furnish proof within 45 days that a transfer meets the
requirements of this subdivision. A corporation, partnership, limited liability company, limited liability
partnership, or other legal entity that fails to comply with a request by the state tax commission under this
subdivision is subject to a fine of $200.00.
(m) A direct or indirect transfer of real property or other ownership interests resulting from a transaction
that qualifies as a tax-free reorganization under section 368 of the internal revenue code, 26 USC 368. Upon
request by the state tax commission, a property owner shall furnish proof within 45 days that a transfer meets
the requirements of this subdivision. A property owner who fails to comply with a request by the state tax
commission under this subdivision is subject to a fine of $200.00.
A transfer of qualified agricultural property, if the person to whom the qualified agricultural property istransferred files an affidavit with the assessor of the local tax collecting unit in which the qualified
agricultural property is located and with the register of deeds for the county in which the qualified agricultural
property is located attesting that the qualified agricultural property shall remain qualified agricultural
property. The affidavit under this subdivision shall be in a form prescribed by the department of treasury. An
owner of qualified agricultural property shall inform a prospective buyer of that qualified agricultural
property that the qualified agricultural property is subject to the recapture tax provided in the agricultural
property recapture act, 2000 PA 261, MCL 211.1001 to 211.1007, if the qualified agricultural property is
converted by a change in use. If property ceases to be qualified agricultural property at any time after being
transferred, all of the following shall occur:
(i) The taxable value of that property shall be adjusted under subsection (3) as of the December 31 in the
year that the property ceases to be qualified agricultural property.
(ii) The property is subject to the recapture tax provided for under the agricultural property recapture act,
2000 PA 261, MCL 211.1001 to 211.1007.
(o) A transfer of qualified forest property, if the person to whom the qualified forest property is transferred
files an affidavit with the assessor of the local tax collecting unit in which the qualified forest property is located and with the register of deeds for the county in which the qualified forest property is located attesting
that the qualified forest property shall remain qualified forest property. The affidavit under this subdivision
shall be in a form prescribed by the department of treasury. An owner of qualified forest property shall inform
a prospective buyer of that qualified forest property that the qualified forest property is subject to the
recapture tax provided in the qualified forest property recapture tax act, 2006 PA 379, MCL 211.1031 to
211.1036, if the qualified forest property is converted by a change in use. If property ceases to be qualified
forest property at any time after being transferred, all of the following shall occur:
(i) The taxable value of that property shall be adjusted under subsection (3) as of the December 31 in the
year that the property ceases to be qualified forest property.
(ii) The property is subject to the recapture tax provided for under the qualified forest property recapture
tax act, 2006 PA 379, MCL 211.1031 to 211.1036.
(p) Beginning on the effective date of the amendatory act that added this subdivision, a transfer of land, but
not buildings or structures located on the land, which meets 1 or more of the following requirements:
(i) The land is subject to a conservation easement under subpart 11 of part 21 of the natural resources and
environmental protection act, 1994 PA 451, MCL 324.2140 to 324.2144. As used in this subparagraph,
"conservation easement" means that term as defined in section 2140 of the natural resources and
environmental protection act, 1994 PA 451, MCL 324.2140.
(ii) A transfer of ownership of the land or a transfer of an interest in the land is eligible for a deduction as a
qualified conservation contribution under section 170(h) of the internal revenue code, 26 USC 170.
(q) A transfer of real property or other ownership interests resulting from a consolidation or merger of a
domestic nonprofit corporation that is a boy or girl scout or camp fire girls organization, a 4-H club or
foundation, a young men's Christian association, or a young women's Christian association and at least 50%
of the members of that organization or association are residents of this state.
(r) A change to the assessment roll or tax roll resulting from the application of section 16a of 1897 PA 230,
MCL 455.16a.
Charles (in GA)
Well-known member
Above continued:
(8) If all of the following conditions are satisfied, the local tax collecting unit shall revise the taxable value
of qualified agricultural property taxable on the tax roll in the possession of that local tax collecting unit to the
taxable value that qualified agricultural property would have had if there had been no transfer of ownership of
that qualified agricultural property since December 31, 1999 and there had been no adjustment of that
qualified agricultural property's taxable value under subsection (3) since December 31, 1999:
(a) The qualified agricultural property was qualified agricultural property for taxes levied in 1999 and each
year after 1999.
(b) The owner of the qualified agricultural property files an affidavit with the assessor of the local tax
collecting unit under subsection (7).
(9) If the taxable value of qualified agricultural property is adjusted under subsection (8), the owner of that
qualified agricultural property shall not be entitled to a refund for any property taxes collected under this act
on that qualified agricultural property before the adjustment under subsection (8).
(10) The register of deeds of the county where deeds or other title documents are recorded shall notify the
assessing officer of the appropriate local taxing unit not less than once each month of any recorded transaction
involving the ownership of property and shall make any recorded deeds or other title documents available to
that county's tax or equalization department. Unless notification is provided under subsection (6), the buyer,
grantee, or other transferee of the property shall notify the appropriate assessing office in the local unit of
government in which the property is located of the transfer of ownership of the property within 45 days of the
transfer of ownership, on a form prescribed by the state tax commission that states the parties to the transfer,
the date of the transfer, the actual consideration for the transfer, and the property's parcel identification
number or legal description. Forms filed in the assessing office of a local unit of government under this
subsection shall be made available to the county tax or equalization department for the county in which that
local unit of government is located. This subsection does not apply to personal property except buildings
described in section 14(6) and personal property described in section 8(h), (i), and (j).
(11) As used in this section:
(a) "Additions" means that term as defined in section 34d.
(b) "Beneficial use" means the right to possession, use, and enjoyment of property, limited only by
encumbrances, easements, and restrictions of record.
(c) "Converted by a change in use" means that term as defined in the agricultural property recapture act,
2000 PA 261, MCL 211.1001 to 211.1007.
(d) "Inflation rate" means that term as defined in section 34d.
(e) "Losses" means that term as defined in section 34d.
(f) "Qualified agricultural property" means that term as defined in section 7dd.
(g) "Qualified forest property" means that term as defined in section 7jj[1].
(8) If all of the following conditions are satisfied, the local tax collecting unit shall revise the taxable value
of qualified agricultural property taxable on the tax roll in the possession of that local tax collecting unit to the
taxable value that qualified agricultural property would have had if there had been no transfer of ownership of
that qualified agricultural property since December 31, 1999 and there had been no adjustment of that
qualified agricultural property's taxable value under subsection (3) since December 31, 1999:
(a) The qualified agricultural property was qualified agricultural property for taxes levied in 1999 and each
year after 1999.
(b) The owner of the qualified agricultural property files an affidavit with the assessor of the local tax
collecting unit under subsection (7)
.(9) If the taxable value of qualified agricultural property is adjusted under subsection (8), the owner of that
qualified agricultural property shall not be entitled to a refund for any property taxes collected under this act
on that qualified agricultural property before the adjustment under subsection (8).
(10) The register of deeds of the county where deeds or other title documents are recorded shall notify the
assessing officer of the appropriate local taxing unit not less than once each month of any recorded transaction
involving the ownership of property and shall make any recorded deeds or other title documents available to
that county's tax or equalization department. Unless notification is provided under subsection (6), the buyer,
grantee, or other transferee of the property shall notify the appropriate assessing office in the local unit of
government in which the property is located of the transfer of ownership of the property within 45 days of the
transfer of ownership, on a form prescribed by the state tax commission that states the parties to the transfer,
the date of the transfer, the actual consideration for the transfer, and the property's parcel identification
number or legal description. Forms filed in the assessing office of a local unit of government under this
subsection shall be made available to the county tax or equalization department for the county in which that
local unit of government is located. This subsection does not apply to personal property except buildings
described in section 14(6) and personal property described in section 8(h), (i), and (j).
(11) As used in this section:
(a) "Additions" means that term as defined in section 34d.
(b) "Beneficial use" means the right to possession, use, and enjoyment of property, limited only by
encumbrances, easements, and restrictions of record.
(c) "Converted by a change in use" means that term as defined in the agricultural property recapture act,
2000 PA 261, MCL 211.1001 to 211.1007.
(d) "Inflation rate" means that term as defined in section 34d.
(e) "Losses" means that term as defined in section 34d.
(f) "Qualified agricultural property" means that term as defined in section 7dd.
(g) "Qualified forest property" means that term as defined in section 7jj[1].
e-tek
Well-known member
Timely thread for us.
We just got our 4 houses re-evaluated AFTER SIX YEARS of being under-valued. Our own home went from $110K to $434K, rental 1: 40K to $110K, rental 2: $115K to $235K.....our overall tax burden will increase by several thousand dollars per year.
We just got our 4 houses re-evaluated AFTER SIX YEARS of being under-valued. Our own home went from $110K to $434K, rental 1: 40K to $110K, rental 2: $115K to $235K.....our overall tax burden will increase by several thousand dollars per year.
beelsr
Well-known member
Actually, it changed in '94 when Prop A passed - sales tax from 4% to 6%. The annual increase is now capped at 5% or the CPI, whichever is less + improvements - losses. Properties are re-evaluated after a sale. At least, that's how I remember it from when I lived in MI. And I remember when the Headlee Amendment passed in '78.
beelsr
Well-known member
He doesn't live in Ferndale, does he? I did that to my house back in 96.
beelsr
Well-known member
My county has property records online. I wrote a script to download the entire county DB and then did some research into the variances in what people pay per acre/per$ valuation/etc...
I own 40 acres, unimproved, landlocked with no easement for access and pay in the top 10 percentile per acre in the county. I appealed and was denied. They were totally freaked out by my statistics. As in "Where the hell did you get that inforamtion?" "Um, the county website..."
On the good side, the appeal I prepared for my in-laws got their assessment lowered by a third.
beelsr
Well-known member
you seem to have a handle on the facts are aren't a raving lunatic.
you should hire an attorney who handles these things.
we're just a bunch of guys on the internet and our advice is worth what you're paying for it.
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HoosierBuddy
Well-known member
Great DISCUSSION. I don't mean to hijack the thread, but a question regarding land.
My home is on 1.12 acres (in theory) but my property stakes are well out into the street. Is that a basis to challenge my valuation? If 2500 square feet of my property is a road, do I have to pay taxes on that? I mean...I know I DO pay taxes on that. I'm just curious.
Phil
My home is on 1.12 acres (in theory) but my property stakes are well out into the street. Is that a basis to challenge my valuation? If 2500 square feet of my property is a road, do I have to pay taxes on that? I mean...I know I DO pay taxes on that. I'm just curious.
Phil
Falcon67
Well-known member
We have caps on those kinds of adjustments so that doesn't happen here. We had plenty of arguments with the assessor office in the 2005~2008 time frame where everyone was hitting the adjustment limit every year. I took some glee in pointing out to them that the crappy house they used as a (way overpriced) comparable to jack us up in 2006 was a boarded up, run down empty house in 2008.
Just to update ALL after my BOR's AV drop to $53,800 I followed up with the Tax Tribunal for my 2012 Assessment - detailed in a number of wrenching posts on this board.
On 10/9/12 the Township Assessor called and I stated I'm willing for an offer before the Tax Tribunal meeting scheduled in December, but did not expect them to go as low as the appraiser's value of $83,700 (Market Valve or $41,850 (Assessed Value)).
He stated we started at $116,600, your BOR dropped it to $107,600, and we are willing to offer $95,000. My reply was, "DONE."
When I went and signed the agreement the afternoon of the 9th the assessor mumbled with a laugh, "we'll always remember you." More from the point of me being a pain versus a retaliatory implication. Now I'm the lowest valued ranch in this area of approximately 600 homes, which is not totally accurate in comparisons, but ... I'm satisfied as it's on the books! So I suppose this might provoke a few other property owners to contest their home's assessed value in 2013 based on my home's assessment. Driving down the Taxable value was the most important issue as it can only increase a max of 5% per year in Michigan -- so I don't care if they raise my Assessed Value to $1,000,000 in 2013.
Thanks for everyone's input.
On 10/9/12 the Township Assessor called and I stated I'm willing for an offer before the Tax Tribunal meeting scheduled in December, but did not expect them to go as low as the appraiser's value of $83,700 (Market Valve or $41,850 (Assessed Value)).
He stated we started at $116,600, your BOR dropped it to $107,600, and we are willing to offer $95,000. My reply was, "DONE."
When I went and signed the agreement the afternoon of the 9th the assessor mumbled with a laugh, "we'll always remember you." More from the point of me being a pain versus a retaliatory implication. Now I'm the lowest valued ranch in this area of approximately 600 homes, which is not totally accurate in comparisons, but ... I'm satisfied as it's on the books! So I suppose this might provoke a few other property owners to contest their home's assessed value in 2013 based on my home's assessment. Driving down the Taxable value was the most important issue as it can only increase a max of 5% per year in Michigan -- so I don't care if they raise my Assessed Value to $1,000,000 in 2013.
Thanks for everyone's input.
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