Delhi Charter Township - Assessing Department FAQ's

Assessing Department - 2074 Aurelius Road, Holt MI 48842 - 694-1502 - email

Assessing
F.A.Q's

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Delhi Charter Township Assessing Department

Frequently Asked Questions

Where is your office located?

Delhi Charter Township

Assessor�s Office

2074 Aurelius Road

Holt, MI 48842

Phone: 517-694-1502

Fax: 517-694-3316

Click here for interactive map

What are your office hours?

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

Our Staff:

Nicole Wilson, MAAO (3), PPE, Assessor
Jim Munson, MAAO (3), PPE, Property Appraiser
Elizabeth A. Tobias, MAAO (3), PPE, Property Appraiser

Valuation & Tax Bill Questions

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

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

How is my assessed value calculated?

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

How is my Taxable Value calculated?

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

CAPPED VALUE FORMULA:

Bulletin 14 of 2011 Inflation Rate Multiplier

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

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

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

The Equalization Timetable

With significant evidence of declining market values, the Michigan State Tax Commission has directed all Assessors and Equalization Departments to use a 12-month study for the preparation of 2012 Residential property assessments.

For 2012 Residential property assessments, the 12-month sales study begins October 1, 2010 and ends September 30, 2011.

According to the State Tax Commission, the use of a 12-month sales study allows the 2012 assessments to more accurately reflect current market conditions. However, the limited number of current sales also means that many areas of the Township have very limited data for the Assessor to calculate current assessments. It may be necessary for the Assessor to expand areas for reviewing neighborhood analysis or estimate market changes based upon area trends.

For 2012, the State Tax Commission is allowing a 24-month appraisal studies (differs from sales study) to determine the property assessments for all other classes of property (agricultural, commercial, industrial, etc).

Foreclosure Sales

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

What does it all mean? How can I expect my assessment to change in 2011?

SEV- As stated in the Equalization timetable, for 2012 the time period of the sales study for Residential property assessments is from October 1, 2010 through September 30, 2011. Sales occurring on/after October 1, 2011 will not be reviewed until the 2013 assessment cycle.

The problem however, is that there is limited sales data in the current 12-month study, so many neighborhoods have little or no sales for the Assessor to use for the 2012 assessment roll. Therefore, many neighborhood adjustments will be based on market activity in the surrounding areas or by using general market trends.

Taxable- Remember, unless there is a transfer of ownership, the definition of Taxable Value is the lesser of the SEV or the Capped value, which is last year�s Taxable Value (adjusted for physical changes) times the CPI (+2.7% for 2012).

Since the beginning of Proposal A in 1994, overall increases in SEV have generally been greater than the increase in Taxable Value capped at the CPI. The longer a property has been owned and capped, the greater the gap between the SEV and Taxable Values.

LET�S LOOK AT AN ASSESSMENT TOGETHER

EXAMPLE #1:

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

Year	CPI (%)	CPI (Decimal)	SEV	Capped Value	Taxable Value	Note:
1999	1.6	1.016	50,700	-	48,564
2000	1.9	1.019	53,200	49,487	49,486	5-11-2000 Transfer of Ownership
2001	3.2	1.032	55,600	51,070	55,600	Property Uncaps
2002	3.2	1.032	60,000	57,379	57,379	CV is lower of two calculations
2003	1.5	1.015	63,000	58,240	58,240	CV is lower of two calculations
2004	2.3	1.023	62,500	59,579	59,579	CV is lower of two calculations
2005	2.3	1.023	63,200	60,950	60,950	CV is lower of two calculations
2006	3.3	1.033	64,000	62,961	62,961	CV is lower of two calculations
2007	3.7	1.037	66,900	65,291	65,291	CV is lower of two calculations
2008	2.3	1.023	64,100	66,792	64,100	**SEV is the lower calculation
2009	4.4	1.044	55,300	66,920	55,300	SEV is the lower calculation
2010	-0.3	0.997	48,900	55,134	48,900	SEV is the lower calculation
2011	1.7	1.017	48,000	56,071	48,000	SEV is the lower calculation
2012	2.7	1.027	45,800	57,585	45,800	SEV is the lower calculation

**Taxable Value will never be higher than the SEV.

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

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

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

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

If you look at the 2008 assessment you can see that the market conditions changed for the worse. The 2008 SEV is lower than the 2007 SEV. This means this home lost property value. The Taxable Value on this home also was lowered in 2008 because the SEV produced a lower number than the Capped Value calculation.

The 2009 - present assessments indicate more property value loss because each of the SEV�s are lower than the prior year. The respective Taxable Values also decreased because each of the SEV�s produced a lower number than the Capped Value calculation.

EXAMPLE #2:

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

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

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

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

Year	CPI (%)	CPI (Decimal)	SEV	Capped Value	Taxable Value	Note:
2005	2.3	1.023	110,000	-	78,900	This owner has owned the property for a long time. There is a gap between SEV and TV.
2006	3.3	1.033	115,300	81,504	81,504	Property value increased - Taxable increased
2007	3.7	1.037	109,750	84,519	84,519	Property value decreased - Taxable increased
2008	2.3	1.023	102,400	86,463	86,463	Property value decreased - Taxable increased
2009	4.4	1.044	94,500	90,268	90,268	Property value decreased - Taxable increased
2010	-0.3	0.997	84,900	89,997	84,900	Property value decreased - Taxable decreased
2011	1.7	1.017	81,500	91,527	81,500	Property value decreased - Taxable decreased
2012	2.7	1.027	79,900	93,998	79,900	Property value decreased - Taxable decreased

More FAQ's

I just purchased my home. Shouldn�t the assessed value be half of what I paid?

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

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

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

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

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

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

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

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

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

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

The calculation for your tax bill is as follows:

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

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

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

Assessors Online Assessment Info

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

Why did my taxes go up this year?

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

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

Bulletin 14 of 2011 Inflation Rate Multiplier
A Millage increase can cause your taxes to increase. Your tax bill includes voter authorized Millage for City, County, State Education, miscellaneous school taxes, and other voter approved Millages. Your tax bill is based on your home�s taxable value multiplied by the Millage rate.
You purchased a home. Proposal A, which was passed in 1994, places an annual cap on the growth of property tax assessments; however, when the home is sold, the cap comes off and the assessment reverts to the State Equalized Value (SEV) of the year following an eligible transfer of ownership.
You may not be taking advantage of the Principal Residence/Homestead Exemption.
You may have added something new to the property which in turn can increase both the assessed and taxable value of the property, i.e. central air conditioning, new deck or porch, new bathroom, new basement finish, new square footage, new shed, new garage, etc.

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

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

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

Assessors Online Assessment Info

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

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

How to read your assessment notice

In general, this form explains Proposal A of 1994. It also informs the property owner of the current assessed and taxable values and compares these numbers to the prior assessed and taxable values. In addition, this form states the percent of principal residence exemption the property is receiving, the estimate of property tax increase/decrease for the upcoming year, and notes if there was a transfer of ownership.

Please make sure that if you are claiming a Principal Residence Exemption that it is noted on this form. If our records say 0% then you are not receiving your credit. See our section on Principal Residence Exemptions to see if you qualify for the exemption.

After checking your records and you disagree with the assessment, you should come in and talk with our Office about the valuation of your property. If you are still not satisfied with the valuation and wish to proceed with filing an appeal, you will need to schedule an appointment to appear before the March Board of Review. Please call the Assessor�s Office at 517-694-1502 to schedule an appointment.

The March Board of Review has jurisdiction on valuation appeals for the current year only. You may not (by state law) dispute prior year valuation at the March Board of Review. Once the March Board of Review closes its public meeting, the assessment roll is closed and certified. No further changes can be made except those allowed by state law�i.e. clerical error, mutual mistake of fact, or Principal Residence Exemption/Homestead corrections, Michigan Tax Tribunal or State Tax Commission judgments.

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

You have the right to further appeal to the Michigan Tax Tribunal. For Residential properties this appeal must be filed with the Michigan Tax Tribunal on or before July 31^st of the current year. Failure to appear before the March Board of Review before hand may eliminate your right to appeal your value at the Tribunal. Property classes other than Residential have different appeal dates. Please visit this link to find your due date:

Bulletin 16 of 2011 Property Tax Appeal Procedures

Please visit the Tribunal�s website for further instructions on how to file your appeal with the Michigan Tax Tribunal.

Michigan Tax Tribunal Website

Principal Residence/Homestead Exemption

PRE Guidelines

Treasury Website: What is a PRE/ Forms

PRE Affidavit

Request to Rescind Principal Residence Exemption

Active Duty Military PRE Affidavit

Qualified Ag Exemption Guidelines

Claim for Farmland Exemption from Some School Operating Taxes

Request to Rescind Qualified Agricultural Exemption Property

Who qualifies for the Principal Residence/Homestead exemption?

If you own and occupy your principal residence, it may be exempt from a portion of your local school operating taxes. To claim an exemption, you must complete the Principal Residence Exemption Affidavit and file it with the Assessor�s office by May 1^st of the year of the claim. The Assessor�s Office will adjust your taxes on your next property tax bill. Note that this is an exemption from part of the taxes and does not affect your assessment. You must own and occupy your principal residence to receive this exemption.

Owning means you hold the legal title to the principal residence or that you are currently buying it on a notarized or recorded land contract. Renters should NOT file this form.

Occupying means this is your principal residence, the place you intend to return to whenever you go away. It is the address that appears on your driver�s license or voter registration card. You may have only one principal residence at a time* (See Exception below). Vacation Homes and Income property which you do not occupy as your principal residence may not be claimed.

If you are living only in a part of the home you may file a partial homestead exemption. Please call the Assessor�s Office at 517-694-1502. We will help you calculate the proper percentage.

You may also file an exemption(s) if you own vacant and contiguous land next to your homestead property.

Rescinding your Exemption:

If you claim an exemption, then stop using the property as a principal residence, you must notify the Township Assessor within 90 days of the change or you may be penalized. This can be done using the Form 2602, Request to Rescind Homeowner�s Principal Residence Exemption.

Conditional Rescind Guidelines

Conditional Rescind FAQ

Conditional Rescind Form

*EXCEPTION- CONDITIONAL RESCISSION-

A conditional rescission allows an owner to receive a Principal Residence Exemption (PRE) on his or her current property and on previously exempted property simultaneously if the previous principal residence (all must apply): is not occupied, is for sale, is not leased, is not used for any business or commercial purpose.

In general, an owner may receive the PRE on the previous principal residence for up to three years if the conditions above are met. The owner must annually submit Form 4640 on or before May 1 in the initial year and December 31 thereafter. Only the owner who previously occupied the property as his or her principal residence qualifies for the conditional rescission. Conditional rescissions are not retroactive. At this time the July and December Boards of review do not have jurisdiction over them to make changes if you miss the filing deadline.

I have not been claiming a homestead exemption on my home. What should I do?

With the exception of conditional rescinds, recent tax law changes allow the Township to correct the homestead status for the current year, and with Board of Review approval, three prior years. After Board of Review approval, if you are due a refund from prior year�s tax payments, your refund will be issued by the Ingham County Treasurers Office. To correct your exemption, please complete a PRE application and submit to the Assessor�s Office as soon as possible. Also, please make sure we are alerted that your property PRE status needs a correction.

Property Transfer Affidavits

Property Transfer/Uncapping Guidelines

Property Transfer Affidavit

What is a Property Transfer Affidavit?

A Property Transfer Affidavit MUST be filed whenever real estate or some types of personal property are transferred (even if you are not recording a deed). It is used by the Assessor to ensure the property is assessed properly and receives the correct Taxable Value. It must be filed by the new owner with the Assessor for the City or Township where the property is located within 45 days of the transfer. If it is not filed timely, a penalty of $5/day (maximum $200) may apply. The information on this form is NOT confidential.

Transfer of ownership means the conveyance of title or the beneficial use of the property. There are both partial and whole transfers of ownership. The Assessor�s office will determine the correct percentage and uncap the Taxable Value accordingly. Please see Taxable Value Calculation listed above for more information.

Real Property Statement

Real Property Statement - Residential

Real Property Statement - Commercial/Industrial

The Michigan Supreme Court has ordered that information about the financing of property sales must be gathered. The purpose is to determine whether favorable financing provided by the seller may have caused the sale price to increase, i.e. mortgage amounts, interest rates, and any personal property received by the buyer, etc. Causes of why the sale price may have dropped are also looked at. Regardless, the terms of each sale must be verified before the sale is considered for property assessment study purposes.

Information disclosed on Real Property Statements is strictly CONFIDENTIAL and will only be shared by the Assessor, State Tax Commission, County Equalization Department, and others involved in and for the determination of assessments.

Miscellaneous Items

Moving?

If you are moving, please inform the Assessor�s Office in writing as soon as possible. Please include your name, current address, address where you�d like your mail to now go, and your phone number. Please make sure we can read it. Our mailing address is Assessor�s Office, 2074 Aurelius Road, Holt, MI 48842. Our fax number is 517-694-3316.

Name Change?

If you recently married and wish to change your name on your Delhi Charter Township accounts please supply the Assessor�s Office with a short note letting us know you would like to change your name, a copy of your marriage license and a copy of your driver�s license (with picture) reflecting your new name, and we will change the accounts.

If someone on the title of your property has passed away and you would like their name removed from your Delhi Charter Township accounts please supply the Assessor�s Office with a copy of the death certificate and a short note letting us know you would like the name removed and we will change the accounts.

PLEASE NOTE:

Using a marriage license or death certificate to change/remove a name from a Delhi Charter Township account will NOT change the title of your property. To change title you must draft a legal instrument (i.e. deed). If you wish to change title of your property you should seek legal counsel to help you do so. Delhi Charter Township employees can not provide you with any legal counsel.

If you are divorced and would like your ex-spouse�s name removed we will need a copy of the divorce decree, signed and entered by the judge/court, stating the new owner of the property. Again, this would just be a name change and would NOT necessarily change the title of your property. To change title you must draft a legal instrument (i.e. deed). If you wish to change title of your property you should seek legal counsel to help you do so. Delhi Charter Township employees can not provide you with any legal counsel.

Tax Proration�s- Delhi Charter Township employees do not calculate tax proration�s. Please seek legal counsel, help from a Title Insurance Company or lending institution to help you calculate a tax proration.

Business Personal Property

2012 Personal Property Statement

2012 Taxpayer Report of PP Move Ins of Used Equipment

2012 Stmt of Qualified PP Property by Qualified Business

2012 Stmt of Idle, Obsolete, Surplus Equipment Report

Who must file a Personal Property Statement?

Public Act No. 206 of 1893 of Michigan State law mandates that all businesses must annually file a declaration of Personal Property with the Assessor of the jurisdiction where the property is situated on December 31. All commercial and industrial businesses have the responsibility of filing a statement with the Assessor, whether a statement was mailed to them or not. If a business has no Personal Property which is assessable, they still must sign and return the form with a declaration of why no assessable property exists.

What happens if a business fails to file a Personal Property Statement?

If your declaration is not filed in a timely manner, an estimated Personal Property assessment will be determined and will be the basis for your tax bills. Failure to file this form may eliminate the business� right to appeal the assessed and/or taxable value at the local or state level or file a correction with the State Tax Commission.

Where do I file the Personal Property Statement and when is it due?

The State of Michigan requires all commercial and industrial businesses to submit a Personal Property Statement to the Assessor�s Office no later than February 20 each year. To ensure timely processing and correct valuation please turn these statements in as soon as possible. Asset listings with addresses of the property location(s), acquisition date and cost, asset category, and disposal lists are extremely helpful.

If your company closed prior to December 31 of the previous year, you must notify the Assessor�s office in writing prior to the March Board of Review or you may have an assessed and taxable value assigned to your account which will result in future tax bills.

Moved out of the jurisdiction /Out of Business as of December 31?

If a business has no Personal Property which is assessable, they still must sign and return the form prior to the March Board of Review with a declaration of why no assessable property exists.

Assessing Department Contact Information

Delhi Township Assessing Department

2074 Aurelius Rd.
Holt MI 48842

phone: 517-694-1502

fax: 517-694-3316

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

This page was updated March 11, 2013