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

No. Until 1994, property was valued for tax purposes at half its market value. This is called the "State Equalized Value" or SEV. That year, 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, when the property is sold, the taxable value is uncapped and jumps up to the SEV, but only for that year. There could be a substantial increase in your tax depending on the difference between the Taxable Value and the State Equalized Value of your property.

2. I have not been claiming a principal residence exemption on my home. What should I do?

Contact our Assessing Department as 517-483-7624 to get information about correcting your principal residence status. Recent tax law changes allow the City to correct the homestead status for the current year and 3 years back. If you are due a refund for prior year tax payments, your refund will be issued by the Ingham County Treasurer's Office.

3. I do not have children in school. Is there a property tax exemption for this?

No. All residents pay school taxes whether they have children in school or not. However, residents who own and occupy a home as their principal residence pay a lower school tax rate. This is called the Principal Residence Exemption, or PRE. If you are eligible for the PRE, your tax bill should indicate no payment due under the "school operating" line item. If you are not sure whether or not you are eligible for the PRE, call the Assessing Department at 517-483-7624.

4. 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 31st of the preceding year. Taxable Value is derived from a formula created by Proposal A in 1994, designed to limit tax increases at the rate of inflation. (Increases in millage rates may also increase taxes). The formula is:

(Previous Taxable Value - Losses) x CPI + Additions = Current Year's Capped Value
The taxable value is the lesser of the Capped Value or the Assessed Value.

Losses are defined as physical changes to the property that result in a loss of value - i.e. demolishing a garage.
CPI is the consumer's price index as calculated by the State of Michigan each October.
Additions are defined as physical improvements to the property that add value and were not previously assessed. i.e. adding a deck.

5. Why did my taxes go up so much this year?

There are several factors that affect your tax bill, please feel free to call us to discuss it. When Your Taxes Increases page.

6. I bought my house this year. How can I estimate what my taxes might be next year?

You can estimate your annual property taxes by going to this link: https://treas-secure.state.mi.us/ptestimator/ptestimator.asp .

7. How is my assessed value calculated?

All assessed values are calculated according the State Tax Commission standards. This value is shown as the State Equalized Value or SEV on your tax statement. It is 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. It 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, we are required by law to analyze sales by economic neighborhood using a 2-year sales study to adjust that neighborhood so that assessed values are at 50% of market value.

8. I just bought my house. Shouldn't the assessed value automatically be half of what I paid?

By state law, a home's assessed value is not half its purchase price, but half of its market value. See the question above to find out how your home's value is calculated.

9. I want to know what information you have on my property. How can I get this information?

Assessment information on your home is public record and copies are available at the Assessor’s Office at City Hall, 124 West Michigan Avenue. We also have data available on the internet at BS&A Online. Follow the instructions to search for data by Name, Address, or Parcel Number. We encourage all taxpayers to review their property information to make sure that it is correct.

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