What Is It?

An Assessment Appeal, also called a Property Tax Reduction Appeal, is a request to lower the assessed value of a property.

Do I Qualify?

Per State law, the sale price of a property cannot be the sole determining factor of the assessment of that property. Neither the Assessor nor the Board of Review can raise or lower a property’s assessment based solely on its sales price.

All assessments are partially based on the sales of similar properties during a particular time frame. For example, the time frame for 2019 assessments is taken from home sales that occurred between April 2016 through March 2018. These sales are “arms-length transactions” meaning we do not typically use bank sales, foreclosures, etc. since they generally do not represent a sale between a willing buyer and a willing seller. Sales information is available on this website or in the Assessor’s office. You may also contact a local realtor.

You may receive a Board of Review reduction in your assessment if:

• Properties in your neighborhood, similar to yours in size, style, and age, recently sold on the open market for significantly less than double your assessed value.
• You present a recent appraisal from a licensed and certified appraiser showing that the value of your property is significantly lower than the City’s assessed market value
• Your property was recently purchased on the open market with a Realtor at a price lower than double the State Equalized Value (SEV). You must present a copy of the listing agreement.
• Your building suffered severe structural damage such as settlement causing severe cracking, water damage so extensive as to undermine the foundation or fire damage. In these instances, you can request an inspection for the property for a reduction in your assessment in relation to the damage.

Lower assessments are not granted from the Board of Review because:

• Your property needs paint, carpet, windows, etc. You are expected to maintain your property in a reasonable condition. Assessments will not be lowered because you fail to do so.
• Neighbors have too many cars in the drive, junk stored in the yard, the house is in disrepair, too many people living in the house, dogs loose, and noisy parties.
• Your neighbor’s house is of the same size, style, and age as yours. It is better carpeted, landscaped, etc., yet you are assessed the same.
• Your property taxes are high, and your income is fixed. Michigan provides tax relief through P.A. 20 of 1973, which can be refunded by the Michigan Homestead Property Tax Credit Claim form (MI-1040CR).

How Do I Appeal?

Notices of annual changes in property tax assessments are mailed to owners each year at the end of February approximately 14 days before the 1st day of the March Board of Review. Property Owners who wish to appeal the assessed value of their property may do so to the local Board of Review. Dates and times are listed on the assessment notices as well as published in the local paper.

You MUST complete the “Petition to the Board of Review” form before being heard by the Board.

You also MUST provide supporting documentation, which must be received by noon before the last day of the scheduled March Board of Review meeting. This supporting documentation must prove what your property is worth. This can be done with an appraisal, sales comparables, market analysis, pictures, etc.

You may submit your appeal by one of the following methods:

1. Appearing in-person at the March Board of Review meeting
2. A representative appearing at this meeting on your behalf after you and your representative have signed a written authorization letter from the Assessor’s office
3. Mailing a written protest/letter to the Assessor’s office by the adjournment of the March Board

All appeal methods receive equal weight with the Board of Review.

What Is It?

MCL 211.51 provides for a Deferment of Summer Property Taxes, which permits summer property taxes to be paid on or before February 14th without any additional penalty or interest.

Do I Qualify?

To qualify for a deferment of summer property taxes, the property owner must:

• Have a total gross household income of $40,000 or less for the preceding tax year AND
• Be totally and permanently disabled, blind, paraplegic, hemiplegic, quadriplegic, OR
• Be an eligible serviceperson, eligible veteran, or eligible widow or widower, OR
• Be at least age 62

AND the property must be:

• Residential real property occupied as a principal residence by the property owner OR
• Qualified agricultural real property as defined by MCL 211.51

Please see the Summer Tax Deferment FAQ for more information.

How Do I Apply?

You may apply for the Deferment of Summer Property Taxes by completing the Application for Deferment of Summer Property Taxes and submitting it to the Assessor.

What Is It?

A Principal Residence Exemption (PRE) exempts a residence from the tax levied by a local school district for school operating purposes up to 18 mills. Section 211.7cc and 211.7dd of the General Property Tax Act, Public Act 206 of 1893, as amended, addresses PRE claims.

Do I Qualify?

To qualify for a principal residence exemption on a dwelling, MCL 211.7cc requires that the property be:

• Owned by a qualified owner as defined by MCL 211.7dd(a)
• Occupied as a principal residence by that owner of the property
• None of the disqualifying factors listed in MCL 211.7cc(3) apply; and
• Claimed by the owner of the property by filing an affidavit with the local tax collecting unit in which the property is located

How Do I Apply?

You may apply for the Principle Residence Exemption by completing the Principal Residence Exemption Affidavit and submitting it to the Assessor.

If you should have a Principle Residence Exemption on the property by June 1, you must appeal to the July Board of Review for the current year and the preceding three (3) years if the exemption was not on the roll.

You may appeal the rescission of a principal residence exemption by completing the Principal Residence Exemption – Rescind form and submitting it to the July Board of Review in either the year for which the exemption is rescinded or immediate succeeding year.

What Is It?

MCL 211.7u provides for a property tax exemption, in whole or part, for the principal residence of persons who, by reason of poverty, are unable to contribute to the public charges.

Do I Qualify?

To qualify, a residence’s asset level may not exceed $10,000 AND must be within the annual allowable income threshold outlined in the Hardship Exemption Resolution.

Please see these guidelines for more information.

How Do I Apply?

To apply for this exemption, you must complete the following forms and submit them to the Assessor:

• Form 5737 – Hardship/Poverty Exemption
• Form 5739 – Affirmation of Ownership and Occupancy to Remain Exempt by Reason of Poverty
• Federal/state income tax filing forms of ALL occupants of the home
  • Form 4988 – Poverty Exemption Affidavit must be filed if an occupant has not filed income tax returns for the current and previous years
• Any supporting documentation which is required of the Form 5737 or any other information which will substantiate your claim

Poverty exemptions are reviewed by the Board of Review in March, July, and December. This does NOT include exemptions denied at a previous Board of Review meeting- poverty exemptions are only heard by the Board once per year. If the taxpayer does not agree with the decision of the board an appeal can be made to the Michigan Tax Tribunal within 35 days of the decision.

What Is It?

MCL 211.7b and 211.7c provides for a property tax exemption for a disabled veteran or their spouse.

Do I Qualify?

To qualify, the property must be used and owned as a homestead by a disabled veteran who was discharged from the armed forces of the United States under honorable conditions OR their unremarried surviving spouse.

Click here for more information.

How Do I Apply?

To apply for this exemption, the property owner, or his or her legal designee, must annually file the Disabled Veterans Exemption Affidavit with the assessor any time after December 31 and before, or until the conclusion of, the December Board of Review.

If my taxes are now based on taxable value, why is there an assessed value?

The Michigan Constitution still requires all properties to be assessed annually at 50% of market value.

How was my assessed value determined?

Assessors use a state required mass appraisal method to value properties. We estimate land values from sales data and building values from a state cost manual. Then, we analyze sales data from your neighborhood and develop factors we use to further adjust our estimates to reflect local market value.

I just bought a new house, why isn’t my assessed value one half of my sale price?

Michigan law prohibits assessors from basing values on one sale price. We are required to value your property based on the methods used to value other properties in your area. While we hope our value estimate is close to your sale price, it is an estimate and may not be the same as your recent sale.

How do I know if my assessed value is reasonable?

Compare the market value of your property with sales of similar homes in your neighborhood. The sales should be on homes that are similar to yours in size, style, age and condition.

Why did my assessed value change?

Your market value can change even when there is no physical change to your property. A growing economy or increasing population can push housing values steadily upward. The Assessor does not create increases in property value. They recognize changes as they occur and must adjust values accordingly.

Why is my change in assessed value different than my neighbor’s?

Assessed value changes vary according to the individual characteristics of houses in relation to sales in your area. Building style, size and amenities such as porches, decks, garages, and extra bathrooms affect value estimates.

What if I disagree with the assessed value on my property?

After gathering the facts about your assessed value, read the above section under “Assessment Appeal.”

Can my taxable value increase more than the rate of inflation?

Yes, if:

• A sale and/or title transfer occurs. In the year following a sale and/or title transfer, the property becomes “uncapped” making the state equalized value (SEV) and taxable value the same. Michigan law states the actual sale price must not be the sole basis for the new SEV for that property.
• New construction to a property is added to the taxable value.
• The value of items omitted from the previous year(s) assessed value is added to the taxable value.

My assessed value didn’t change, but my taxable value increased. Why?

The current sales information for your neighborhood may show no value increase over last year’s value. However, the taxable value is tied to the Consumer Price Index and calculated annually causing an increase in your taxable value.

Who owns the vacant lot next to the brown house on ____ Street?

When trying to locate information on vacant property, you need to come into our office and let us help you locate the property on a tax map. This way you can be sure you’re getting the correct information.

How can I find my property lines?

If you need to find your property lines, you should contact a local surveyor to perform this service. Several are listed in the yellow pages of the phone books. We can provide your lot size and a copy of your plot map to get you started, but we cannot survey or locate stakes on your property.

Where do I get a deed prepared for my property?

Contact an attorney for a new deed. If you are familiar with property transactions and feel comfortable preparing legal documents by yourself, deed forms are available at most office supply stores.

Where can I get a copy of my deed?

Copies of recorded deeds and land contracts can be obtained from the Gladwin County Register of Deeds Office in Gladwin.

What is an ownership transfer?

State law defines a “transfer of ownership” as “the conveyance of title to or present interest in property, including the beneficial use of the property.” Transfers include deeds, land contracts, and a variety of transactions outlined on the back of the affidavit form.

What is a property transfer affidavit?

Whenever real estate or some types of personal property are transferred (even if you are not recording a deed), a Property Transfer Affidavit must be filed to the Assessor by the new owner within 45 days of the transfer. The affidavit is used to make sure that property is assessed properly and receives the correct taxable value.

Where do I obtain and file the affidavit?

The affidavit is linked in the above section under “Property Transfer.” It must be filed to the Assessor within 45 days of the transfer.

What happens after ownership of a property is transferred?

The Michigan Constitution limits how much a property’s taxable value can increase while owned by the same person. Once the property is transferred, the assessor must change the taxable value to 50% of the property’s usual selling price. In other words, in the year following the sale the taxable value equals the current state equalized value.

Are certain types of transfers exempt from adjustment?

Yes. Some of the exempt transactions include changes in ownership solely to exclude or include a spouse, transferring a property into a trust where the sole beneficiary is the creator of the trust or that person’s spouse, redemption from a tax sale, or transfer to effect a foreclosure. Some of the exempt transactions are listed on the affidavit form and full descriptions are in MCL 211.27a(7)(a-m).

I’m building a new house. How can I estimate the taxes?

Estimate your annual taxes by multiplying ½ of the estimated total value of the completed home times the tax rate. Be sure to add land value to your value estimate before computing your estimated taxes.

Do I have any delinquent taxes on my property?

Because the Assessor has access to the City Treasurer’s payment records, we can answer questions about current taxes due. Taxes due for prior years must be checked at the Gladwin County Treasurer’s Office at (989) 426-7251 or treasurer@gladwincounty-mi.gov. It’s helpful if you have a parcel identification number handy to help the County Treasurer look up your records.

What’s the ownership transfer process?

Learn about property transfers in the above section under “Property Transfer.”

How can I estimate my monthly tax escrow payment?

One way to avoid escrow shortages is to base your tax escrow payments on estimated taxes. Use ½ of your sale price (if it is a market value sale) times the tax rate to estimate your total taxes. Divide by 12 to get a monthly amount. We can help you estimate taxes! Our contact info is at the top of this page.

I just bought a new house, why isn’t my assessed value one half of my sale price?

Michigan law prohibits assessors from basing values on one sale price. We are required to value your property based on the methods used to value other properties in your area. While we hope our value estimate is close to your sale price, it is an estimate and may not be the same as your recent sale.