Assessed ValueThis value represents half of the true cash value for your property. It is a sales driven number that is determined by the Assessor. Example of Values:
The effects of Proposal “A”:
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Taxable ValueThis figure is actually a calculation and not a “value”. This calculation is strictly a number used to calculate property taxes. The Taxable Value is multiplied by the millage rate to produce a tax dollar figure. This number will increase at the rate of inflation or 5% (whichever is less) every year as long as it does not go over the Assessed Value. The Taxable Value will increase by the rate of inflation or 5% (whichever is less) even if the Assessed Value is coming down, as long as it does not go over the Assessed Value. Thomas Townshipdoes not have control over the rate of inflation increase. Proposal “A”, which was a Michigan Constitutional Amendment in 1994, drives this concept and the State of Michigan directs local Assessors yearly as to what the rate of inflation will be. Uncapping Due to TransferWhen a property is transferred, the following year’s Taxable Value will “uncap” and be brought up to match the Assessed Value. The Taxable Value will then be “capped” again in the second year following the transfer of ownership.
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The Role of County EqualizationEvery year the Saginaw County Equalization Department performs a sales study that will indicate what direction the Township’s values must go. This study produces an overall sales ratio as well as a multiplier for each class that would produce the desired total amount of value for the entire class of properties. The property classes are; Residential, Agricultural, Commercial, Industrial, and Developmental. It is important to remember that “Classification” is not the same thing as “Zoning”. For 2011 and 2012, a one-year sales study was used to determine the overall sales ratio. |
The One-Year Sales StudyThis type of study is used in times of a quickly changing market. Using only one year of the most recent sales information will better depict where the values should be. However, the sales data is cut in half, and in some areas, little to no sales have occurred. |
Equalization NumbersIn 2011, the County Equalization Department issued a residential sales ratio of 49.18% and a multiplier of 1.0167. The goal ratio number is between 49% and 50%. Remember, Assessed Value is intended to represent 1/2 of True Cash Value. In 2012, the County Equalization Department has issued a residential sales ratio of 51.46% and a multiplier of 0.9716. These ratios have created a decrease for a majority of the Residential Assessed Values. Remember, it will only affect the Taxable Value if the Assessed Value is equal to or less than the Taxable Value. |
Our 2012 Numbers:
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How are we adapting for the market?Each residential property is assigned to a “neighborhood”. A specific sales study is performed for each “neighborhood”. This will help indicate where the values are decreasing and at what rate. This will insure that the correct amount of adjustment is made. As always, a fair and equitable assessment is the goal. |
The March Board of ReviewEvery February a new assessment is delivered to each property owner. If a property owner disagrees with the assessment, they may call Thomas Township and set up an appointment with the March Board of Review. The Board of Review is made up of three residents of the Township. These meetings will take place during the second week of March. A request for an appeal must be made before the last session of the Board of Review. This will typically be at the end of the second week in March. An appeal by letter may also be made. |