Property Tax Reduction Appeals

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 Board of Review meetings. 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?

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.

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.

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:

• Hardship/Poverty Exemption Form 5737
• Form 4988 – Poverty Exemption Affidavit
• Federal/state income tax filing forms of ALL occupants of the home
• Any supporting documentation which is required of the Form 5737 or any other information which will substantiate your claim

PA 74 of 1995 authorizes the July Board of Review to hear appeals for poverty exemptions. This does NOT include exemptions denied by the March Board of Review. 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.