General Information

Determining the Assessed Value

Information on the property is gathered during a physical review (square foot, story height, foundation/construction type and amenities) and then entered into the assessment system that calculates a base value according to the State Tax Commission cost new manual. That value is then depreciated for age and adjusted for construction costs in Livingston County, then the value is further adjusted to other properties within neighborhoods defined by similar type construction by the economic condition factor (ECF), which weighs the market conditions of that area based on property sales.

Terms You Should Understand When Reviewing Your Assessment

True Cash Value (TCV) (aka Market Value) – The value of the property determined by the assessor.
Assessed Value (AV) – 50% of the True Cash Value.
State Equalized Value (SEV) – The final value calculated by multiplying the Assessed Value by the equalization factor, if warranted. Typically, this number is the same as the Assessed Value.
Capped Value (CV) – The prior year's Taxable Value minus any losses (demolition of a structure, etc.) multiplied by the Consumer Price Index (CPI) for the current year, plus any additions (new construction, etc.).
Taxable Value (TV) – The value on which property taxes will be computed. This will be the Assessed Value or Capped Value, whichever is less.
'401 Residential Improved Classification' - this classification refers to residentially classed property that has been 'improved' by a building being placed on that property at some point in time. The word 'improved' does not indicate that there has been an improvement added from the previous year. It simply clarifies that this property has a building of some sort on the land, and is not considered to be vacant land.

How Does Proposal A Affect My Property Taxes?

In 1994, Michigan voters passed Proposal A, which created a new basis by which property tax would be calculated. Property tax is calculated based on taxable value, which can only increase on an annual basis by five percent or the rate of inflation – whichever is lower. The passage of this proposal resulted in a relative stabilization of taxes for property owners who, before 1994, paid taxes calculated on the assessed value and were greatly impacted by swings in property values.

The baseline for taxable value is recalculated when a property is sold or transferred. In the year after the property is transferred, the cap is lifted and the taxable value is reset to equal the assessed value. The cap is then set in place once again.

When Would I Receive My Assessment Notice?

Assessment change notices are mailed in the latter part of February and if a property owner does not receive their notice by the first week of March they should contact the assessing department. Updated assessment information will be available on the website after February 20 for the current year.

Appealing An Assessment

If a property owner disagrees with an assessment, he or she may file an appeal, which would be heard by the March Board of Review. Valuation appeals are heard in March only. The July & December Board of Review is convened to correct clerical errors only. Valuation appeals are not heard in July or December. A homeowner must appeal to the March Board of Review to protect their right to further review at the State Tax Tribunal.