Frequently Asked Questions

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 fluctuation in selling prices of similar homes. Additionally, property improvements may increase your assessed value.

Taxable value is the amount on which a property owner pays property taxes. Taxable value is the lesser of the assessed value or the prior year’s taxable value minus losses, increased by the lesser of 5% or the Consumer Price Index (CPI), plus additions. The Consumer Price Index for 2011 taxable value is 1.7%. A transfer of ownership will change the taxable value to the assessed value in the year following the transfer of ownership. Information about the calculation of the CPI can be found at the Michigan Department of Treasury website.

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

Over the years, the majority of property values in the City of Jackson have increased in value greater than the Consumer Price Index (CPI). 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 CPI, 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 CPI. The CPI 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 CPI. 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. For more information and additional details access Understanding Proposal A in a Declining Market (PDF) document (PDF).

For information about The Tax Foreclosure Auction please contact Jackson County Treasurer 120 W Michigan Ave 517-788-4418

Every year, you receive an assessment notice indicating changes in the assessed value and the taxable value of your property. The assessed value represents 50 percent of the estimated market value of your property. The taxable value indicates how much of that value you will pay taxes on. Click the following link for more information

A conditional rescission allows an owner to receive a 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

To apply for a conditional rescission, the owner must submit a Conditional Rescission of Principal Residence Exemption (PRE) (Form 4640) to the assessor for the city or township in which the property is located on or before May 1 of the first year of the claim. Form 4640 can be found at the Michigan Taxes resource, or obtained from your local assessor. For example, to qualify for a PRE in 2009 under a conditional rescission, the form must be submitted on or before May 1, 2009.

An owner may receive the PRE on the previous principal residence for up to 3 years if the property is not occupied, is for sale, is not leased, and is not used for any business or commercial purpose. The owner must annually submit Form 4640 on or before December 31 to verify to the assessor that the property for which the PRE is retained is not occupied, is for sale, is not leased, and is not used for any business or commercial purpose. For example, if an owner received a PRE in 2008 by submitting Form 4640, he or she would have to submit another Form 4640 by December 31, 2008, to qualify for a PRE in 2009.

No. If the conditional rescission requirements are met, Form 4640 would take the place of Form 2602.

The owner may receive a PRE for the 2008 tax year if Form 4640 is submitted by May 1, 2008, and the property is not occupied, is for sale, is not leased, and is not used for any business or commercial purpose. (Also see question 2, above.) If the assessor determines the property qualifies for a PRE under a conditional rescission, the assessor would put the PRE back on the tax roll for the 2008 tax year the same as if an affidavit is filed for a new PRE.

The owner may receive a PRE for the 2009 tax year if the Form 4640 is submitted by May 1, 2009, and the conditional rescission requirements are met. If the assessor determines the property qualifies for a PRE under a conditional rescission, the assessor would put the PRE back on the tax roll for the 2009 tax year the same as if an affidavit is filed for a new PRE.

Yes, for sale by owner is an option.

The 60% that qualified for a PRE: Must not be occupied must be for sale, must not be leased, and must not be used for business or commercial purposes. The property would qualify only for the 60%. Public Act 96 of 2008 states that the “owner may retain an exemption for not more than 3 tax years on property previously exempt as his or her principal residence...” (emphasis added). Therefore, a taxpayer would be able to retain the 60% if all other requirements are met. In addition, if a taxpayer is receiving 100% PRE and then rents out 60%, he or she would not qualify for a conditional rescission since he or she is not retaining the 100% exemption previously exempt as his or her principal residence.

The Board of Review has no authority with regard to a conditional rescission and cannot institute a conditional rescission on behalf of an owner if a deadline is missed or for previous tax years. Specific deadlines were included in the statutory language which did not address missed deadlines in Section 19 of MCL 211.7cc. Section 19 specifically states, “An owner who owned and occupied a principal residence on May 1 for which the exemption was not on the tax roll may file an appeal...” The inherent nature of a conditional rescission does not meet the requirements of Section 19 since the property is not occupied by the owner.

Only the owner who previously occupied the property as his or her principal residence qualifies for the conditional rescission. Companies such as a bank do no qualify for a PRE regardless of the situation.

No. The property must be for sale. It may also be available for lease, but once the property is leased, it does not qualify. If a property is receiving a PRE under a conditional rescission, the local tax collecting unit shall deny the conditional rescission effective on December 31 of the year immediately preceding the year in which the property is leased. For example, if a person is receiving a PRE in 2008 under a conditional rescission and then leases the property in September 2008, the conditional rescission shall be denied effective December 31, 2007, resulting in the PRE being removed for the 2008 tax year.

No. A conditional rescission is not retroactive. The first year of eligibility is 2008 if the form is submitted on or before May 1, 2008.

No. Once the property is leased, the opportunity to receive a conditional rescission is no longer available.

No. The owner of the property must be eligible for and claim an exemption for his or her current principal residence. A person renting an apartment is not eligible for a PRE.

No. If a person moves to another state, he or she would not qualify for a PRE since an exemption, as defined in MCL 211.7cc, cannot be claimed.

No. In order to qualify, the owner of the property must be eligible for, and claim, an exemption for his or her current principal residence and have occupied the previously exempted property as his or her principal residence. A deceased person cannot be eligible for and claim an exemption on a current principal residence. In addition, if the beneficiaries did not occupy the previously exempted property as their principal residence, they would not qualify for a PRE under a conditional rescission.

Yes. As the statute states, the “...owner may retain an exemption...on property previously exempt as his or her principal residence...” (emphasis added). However, the contiguous parcel must not be occupied, must be for sale, must not be leased, and must not be used for any business or commercial purpose.

Form 4640 must be submitted to the Michigan Department of Treasury on a quarterly basis, or the same time as when other PRE related forms are sent in. It is recommended that the assessor keep a copy of each Form 4640 for comparison during the annual renewal of the conditional rescission.

The owner(s) is certifying the information on the form upon signing the form. However, an assessor has the responsibility to do due diligence to verify the conditional rescission requirements are met as when any other PRE related form is submitted

A property owner who had the PRE on the prior principal residence denied or removed by an Assessor, County Treasurer, the Department of Treasury, Board of Review, or Michigan Tax Tribunal (MTT), is not eligible for a conditional rescission and the Board of Review does not have authority to hear an appeal. However, a property owner who voluntarily rescinded the exemption of the prior principal residence within 90 days of changing residences, as required by statute, may be eligible for a conditional rescission.

A property owner who voluntarily rescinded the exemption of the prior principal residence within 90 days of changing residences, as required by statute, may be eligible for a conditional rescission.

A denial is issued in accordance with Section 6 of MCL 211.7cc. Therefore, an owner has appeal rights to the Michigan Tax Tribunal as detailed in Section 6.

The Veterans’ Administration defines a service connected disability as a disability related to an injury or disease that developed during, or was aggravated while on active duty or active duty for training (Summary of VA Benefits for Disabled Veterans). The Veterans Administration Schedule for Rating Disabilities is used to assess the medical conditions and illnesses incurred or aggravated during the veteran's military service and percentage rating from 0% to 100% is assigned based on the severity of the disability.

Individuals filing the affidavit for the exemption under criteria must provide a copy of the letter from the Veterans’ Administration indicating they have a 100% service connected disability and are entitled to receive benefits.

Note: The act does not require the disabled veteran to have already received the benefit, it only requires that they have been determined to be permanently and totally disabled as a result of military service and entitled to veterans’ benefits at the 100% rate.

The Veterans’ Administration provides veterans with certain permanent and total service - connected disabilities financial assistance to purchase or construct an adapted home or modify an existing home to accommodate a disability. There are two grant programs:

• Specially Adapted Housing Grant (SAH)
• Special Housing Adaptation Grant (SHA)

This information is per the U.S. Department of Veterans Affairs Housing Grants for Disabled Veterans.

The State Tax Commission has determined that receipt of either grant would qualify an individual for the exemption under criteria b). Individuals filing the affidavit for the exemption under criteria b) must provide a copy of the certificate from the Veterans' Administration indicating they are receiving or have received pecuniary assistance due to disability for specially adapted housing.

Individual unemployability is part of the Veterans’ Administration disability compensation program. Under this program, veterans may receive compensation at the 100% rate even though their service connected disability is not rated at 100%. [Veteran’s Affairs Individual Unemployability Fact Sheet ] In order to be eligible, a veteran must prove they are unable to maintain substantially gainful employment as a result of their service connected disability. In addition they must have one service connected disability rated at 60% or more or 2 or more service connected disabilities with at least one rated at 40% or more with a combined rating of 70% or more. Individuals filing the affidavit for the exemption under criteria c) must provide a copy of the letter from the Veterans’ Administration indicating they are individually unemployable.

No, there is no asset test and/or means test to determine eligibility. In order to be eligible, the disabled veteran must meet the requirements of Public Act 161 of 2013 regardless of their income or the value of their home.