Taxable Value (TV) is the value upon which property taxes are based. TV is the Lesser of State Equalized Value (SEV) or Capped Value (CV). TV in the year following a transfer of ownership (sale, gift inheritance, etc.) is equal to the SEV.
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The State Tax Commission recommends using a period from April 1, 2019 to March 31, 2021. This is considered to be a 24-month study.
The State Tax Commission recommends using a period from April 1, 2020 to March 31, 2022. This is considered to be a 24-month study.
The State Tax Commission recommends using a period from April 1, 2021 to March 31, 2023. This is considered to be a 24-month study.
The Assessor estimates the value of your property typically by first examining and collecting information on the physical characteristics of the property. Physical characteristics can include, among others:
A property's value can change for many reasons. The most obvious is that the property changes: a bedroom, garage, or swimming pool is added, or part of the property is destroyed by flood or fire. The most frequent cause of a change in value is a change in the market.
State Equalized Value (SEV): 50% of Market Value or True Cash Value, commonly referred to as your property assessment.
Capped Value (CV) has the formula of: Previous year’s Taxable Value minus Losses (physical changes to the property) times the Consumer Price Index (CPI) or 5%; whichever is less, plus Additions (physical changes to the property), (TV-Losses x CPI (5%) + Additions = CV).
The simple answer is that it is against the law. MCL 211.27 states that the purchase price is no longer the presumptive True Case Value of a property. The assessment may be close to 50% of the purchase price but the property SEV is determined by investigating the other sales in the vicinity of the property. All of the SEV in the vicinity of the property is set using that sales study.
Sale prices going down in the neighborhood will not be reflected immediately in your assessment. The State allows for a two year sales study and an optional one year sales study. In inflationary times, a two year study helps the taxpayer because sales used are older and therefore lower in value. In deflationary times, a one year sales study helps the taxpayer because it reflects the more recent sales.
The City of Portage has used one year sales studies for 2010, 2011, 2012 and 2013. The City used two year sales studies for 2014-2022.
The homestead exemption is more correctly known as the Principal Residence Exemption (PRE). The qualifications are simple; you must own and occupy the home as your principal residence on or before June 1st. A person or a married couple is allowed only one PRE in the state. You may not claim an exemption in any other state. The exemption continues until the use of the home as your principal residence changes.
When the change occurs, you must notify the Assessor’s Department in writing. Proposal A and state law does not allow for partial credit. As an example, even if you move into a non-homestead property on June 5th, the exemption does not begin until the following year. Recent legislation has allowed the granting of a second homestead in certain conditions. The “Conditional Rescission” is available when the previous homestead is not occupied or rented and is listed for sale. Please contact the Assessing Department at 269-329-4433 if you think you qualify for the additional exemption.