ASSESSING

Assessing FAQ's

General Questions

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What authority does Mundy Township have to place value on my property for tax purposes?
 MCL 211.1 Sec. 1.  The people of the State of Michigan enact:
That all property, real and personal, within the jurisdiction of this state, not expressly exempt shall be subject to taxation.  Public Act 206 of 1893 shall be known and may be cited as The General Property Tax Act.  (Link provided will take you out of The Charter of Mundy Township website and to the State of Michigan's.)


What property is assessed?
There are two types of property subject to assessment. Real property which includes land, land improvements and structures, farms, businesses, industry, residences, timber cut-over land and development property. The other is personal property. This includes furniture and fixtures, machines and equipment belonging to a business, certain public utilities, oil wells, structures on leased land and other similar properties.

What is "SEV"?
State Equalized Value- The state equalized value is the assessed value after equalization at the county and state levels.  The SEV of a property approximates 50% of true cash value.

What is "equalized value"?

It is the result of using the State Tax Commission manual to determine the cost to replace less depreciation adjusted by market trends.  In the past, values increased by the percentage of increase a neighborhood experienced in sales.  Currently, the trend is downward, adjusting for declining values in sales.  Typically, sheriff deed sales (foreclosed properties) are not used in the sales study to determine that percentage.

What is "taxable value"?

Taxable Value - Is the lesser of the State Equalized Value (SEV) of the Capped Value for each individual parcel of property.  In the year following a transfer of ownership the Taxable Value of an individual parcel shall be the same as the SEV of the parcel for the year following the transfer of ownership..

How do I compute my taxable value?

Taxable value = Lesser of assessed value or capped value.

What is "capped value"?

Capped Value Formula:

(Prior year taxable value – losses) x (1.05, or the Inflation Rate Multiplier, whichever is lowest) + Additions=Capped Value

This formula gets applied ever year until there is a change in ownership.

How do I calculate my property taxes?

The assessor's office does not determine tax bills. The amount of tax you pay is determined by multiplying the tax rate by your taxable value.  The tax rate is determined by the voter approved mileage.

Taxable value x Millage = Tax bill

(Click here to go to state’s estimated tax computations. Link provided will take you out of The Charter Township of Mundy website.)

Why are my taxes different from my neighbors when we have the exact same house?

If you purchased your home in a different year, the taxable value would have been uncapped and you will be paying taxes on the previous owner's SEV. There are many interior attributes that add value also.

 

Value Discrepancies

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I believe the value placed on my home includes a mistake. What do I do about it?

First thing to do is to ask the Assessing Department to explain your assessment. Double-check the entries on file. Always take the time to talk with the Assessing Department before attending the Board of Review meeting, to educate yourself and possibly correct the problem without an appointment.

How do I get an appointment with the March Board of Review?

In early February, Change of Assessment Notices are mailed to all property owners. There are instructions at the bottom of the form as to when you can call to and schedule an appointment. The March meeting is the only time homeowners are allowed to dispute value.

Now I have an appointment with the Board of Review. What do I do now?

At the time of your appointment, you will be asked to fill out a petition. At your appointment time, you will present your reasons to the Board as to why there is an error in the value of your property. Present appraisals or any other information you have available.

I will be out of town during the March Board of Review, what can I do?

You may send someone to represent you or submit a letter of appeal. The letter must be received before the close of the Board of Review. Include in your letter the parcel number and the reasons for your appeal. You will be notified by mail of their decision and further appeal rights.

Who is the Board of Review?

The Board is made up of residents, which by law; two thirds have to be property owners within Mundy Township.

How often do they meet?

They meet three times a year. The March meeting is solely for valuation disputes, poverty appeals, and classifications. The July and December meetings are for Principle Residence Exemption corrections, clerical errors, and mutual mistakes of fact and poverty appeals not heard in March.

What if I do not agree with the Board of Review's decision?

You have the right to appeal with the Michigan Tax Tribunal. This must be filed with the Tribunal before June 30th of the current year.

Click to download form. (Link provided will take you out of The Charter Township of Mundy website.)

 

New Construction

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How much will my taxes go up if I build a garage?

Your taxes go up by the yearly millage rate multiplied by 50% of the appraised value of your new garage. If the new garage appraised at $20,000 x 50% =$10,000 x mileage rate=add taxes

(Call the Mundy Township offices for the current millage rate or, click here to go to treasurer’s screen.)

What if I do my own construction work to save money?

Assessments are based on fair market value- whether you do the work yourself, hire a contractor, buy the materials on sale, or pay full price. What matters is the value the improvement adds to the overall worth of the property.

What if I see Township personnel on my property taking pictures or measurements?

The staff will be performing statutory duties by gathering accurate information to update our assessing record, including pictures and yearly onsite inspections.

If I repair my home, will my assessment go up?

All homes should be kept in good repair for everyone’s safety and welfare. Normal repairs and maintenance will not increase an assessment. These would include siding, windows, porches, roof, heating systems, painting, and interior remodeling. Expenses or renovations which add to the structure do not qualify as normal repairs.

 

Change of Residency

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Why do I have to file a "Principle Residence Exemption Affidavit"?

You would pay $18 per $1000 of taxable value less than if you file the form and qualify. Deadline to file this form is May 1st. If you recently purchased the home, be sure it is on file.

More details available on this subject elsewhere on website.

(Click to download formLink provided will take you out of The Charter Township of Mundy website.)

I am purchasing my home on a land contract. Do I qualify?

In order to qualify, the land contract must be recorded or recordable (signed and notarized). If it is not recorded, you must provide a copy of the land contract and the amortization schedule showing principle and interest amounts and file a Property Transfer Affidavit.

I sold my house and moved to another township/city. What do I have to file?

The seller will have to sign a Request to Rescind Principle Residence Exemption form.

(Click to download form. Link provided will take you out of The Charter Township of Mundy website.)

I own the lot adjoining the lot my home is on but it has a different tax identification number. May I claim this property with the exemption?

Yes. As long as the property claimed adjoins the property that the property your house is on.

What is a "Property Transfer Affidavit"?

This form allows accurate yearly updates of sales information. The affidavit must be filed whenever property changes ownership as this affects the taxable value of a property. Failure to file this form can result in penalties of $5 per day up to a maximum $200. Filing is mandatory.

(Click to download form. Link provided will take you out of The Charter Township of Mundy website.)

I moved to a different home. What do I need to fill out?

You must rescind the Principle Residence Exemption within 90 days of the date you no longer own the property.

(Click to download formLink provided will take you out of The Charter Township of Mundy website.)

If I convert my current home into a rental property and move to a new home, can I claim them both?

No. You must rescind the one used for a rental home and pay the higher rate of taxes. The home you occupy can be claimed by filing a Principle Residence Exemption.

What if I own a home in another state?

You must be a Michigan resident to claim the exemption. The test the Michigan Department of Treasury uses to determine residence includes where you are registered to vote, the address on your driver’s license, and the address used to file your income tax returns.

I changed residences but was unable to sell my previous home.  What can I do about my taxes?

There is a three (3) year conditional rescission available on the vacant house so long as it is not occupied, is currently for sale, is not leased and not used for any business or commercial purpose.

(Click to download form and rules.  Link will take you out of the Mundy Township wbsite.)