INTRODUCTION

Michigan Statutes require that all Real and Personal Property, subject to taxation, shall be assessed annually.

Assessments are estimated at 50% of the property's Market Value. However, property owners pay taxes based on the property's Taxable Value. Taxable Value is the lesser of Assessed Value (SEV) or the prior year's taxable value minus Losses, increased by the lesser of 5% or the Inflation Rate Multiplier (IRM), plus Additions. A transfer of ownership will change the taxable value to the assessed value in the year following the transfer of ownership.

Example: $50,000 Taxable Value
40 Millage Rate (Dollars per Thousand)
$2,000 Estimated Annual Tax Bill

FREQUENTLY ASKED QUESTIONS

WHY DOES MY ASSESSMENT CHANGE EVERY YEAR?
The Assessed Value of your property reflects an estimate of 50% of your property value. This estimate is based on sales of similar homes within the same or similar neighborhoods. Your Assessed Value changes to reflect the change in selling prices of similar homes. Additionally, property improvements may increase your Assessed Value.

WHAT IS TAXABLE VALUE?

Taxable Value is the amount on which a property owner pays property taxes. Taxable Value is the lesser of the Assessed Value (SEV) or the prior years taxable value minus losses, increased by the lesser of 5% or the Inflation Rate Multiplier, plus Additions. The inflation rate for 2008 taxable value is 2.3%. A transfer of ownership will change the Taxable Value to the Assessment in the year succeeding the transfer of ownership.

Losses are the removal of property, such as removal of a garage. An Addition includes finishing a basement, building a deck, and other improvements.

HOW CAN MY TAXABLE VALUE GO UP WHEN MY ASSESSED VALUE GOES DOWN?

Over the years the majority of property values in the City of Jackson have increased in value greater than the Inflation Rate Multiplier (IRM). However, many neighborhoods are now experiencing a decline in the market value. The 1994 Constitutional Amendment known as Proposal A requires that the Taxable Value increase by the IRM, however, it cannot exceed the Assessed Value.

Some property owners have a significant difference in the amount of their Assessed Values and Taxable Values. Assessed Value represents 50% of the estimated property value. Taxable Value is a mathematical formula that is based on the preceding year's Taxable Value increased by the IRM. The IRM is determined for the entire State and applied by each municipality. Taxable Value may also increase for physical additions and decrease for physical losses.

The year after you purchase your home or lot, the Taxable Value is "uncapped" and becomes the same amount as the Assessed Value for that year only. Each year thereafter, the Taxable Value is adjusted by the IRM in the same manner as described above.

Proposal A mandates that the Taxable Value must be adjusted each year by the IRM. The Assessed Value is adjusted each year based on sales studies. Sales studies are based primarily on bona fide sales of similar homes in similar areas. The sales analysis may indicate that the market value should increase, decrease or stay the same.

The Taxable Value cannot exceed the Assessed Value.


Homesteads

If you own and occupy your own home, it may be exempt from the 18 mill school operating tax. On a house that is worth $100,000 and with taxable value of $50,000 the savings to you would be $903 per year. To claim an exemption, complete the principal residential exemption affidavit and file it with the City Assessor by May 1. If you qualify for a principal residential exemption, the City Assessor will adjust your taxes on your next property tax bill. Note that this is an exemption for part of your taxes, not from your taxable value.

Principal Residential Exemption Affidavit
(formerly Homestead Exemption) 

If you need to rescind or withdraw a homestead please use the following form.

Request to Rescind/Withdraw Principal Residential Exemption

Transfers

Proposal "A" eliminated the double-digit increases in taxes by placing an annual limit on any increase to 5% or the rate of inflation, whichever was less. All properties still have an assessed value, which is still 50% of market value. However, we now base property taxes on taxable value. The limit or cap on increases in taxable value remains in effect each year, except if the property's ownership is transferred. In that case, we increase the taxable value to equal the assessed value. The taxable value can never be greater than the assessed value. A Transfer Affidavit must be filed whenever real estate or some types of personal property are transferred (even if you are not recording a deed).

Property Transfer Affidavit

Business Personal Property Statements

Personal property statements are required to be filed by February 1, 2007

Personal Property Statement   includes instructions.
Personal Property "Move-ins' of used equipment
Idle, Obsolete, Surplus Equipment

Appeals

Change of Assessment notices are mailed in February. Board of Review meets in second week of March.

Petition to the Board of Review is available here