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.

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.

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.

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.

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

Recent Sale Tax Value

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.

Proposal A of 1994 provides for the taxable value to “catch up” to the Assessed Value in the year following a transfer of ownership. This is generally referred to as “uncapping”.

For example, if you purchased your property in 2025, the 2026 Taxable Value will be equal to the Assessed Value. After that “uncapping,” the Taxable Value will again be limited or “capped” up again during your ownership.

It is important to know that your taxes will not be the same as the previous owner’s. Depending on the gap between the Assessed Value and the Taxable Value, the taxes could go up significantly in the year following the purchase.

Adjustment Special Circumstances

Certain types of transfers are exempt from adjustment. 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; and
• 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).

Delinquent Taxes

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.

Mortgage Payments

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.

Mortgage companies typically raise house payments about one year after you buy a new house. The original tax escrow payment was probably based on the last known taxes. After you purchased the property, it’s taxable value was uncapped for the next tax year. The taxes were then based on a higher value. When this happened, your mortgage company reevaluated your escrow amounts and changed your payment to cover the actual taxes on your home. They may also increase your payment to make up any shortfalls in the previous year.