Understanding Your Property Value

Assessed Value
This value represents half of the true cash, or market value for your property.  It takes into consideration all aspects of your property. Such as; square footage, year built, quality, location, etc. In the end it is a sales driven number that is determined by the Assessor.

Example of Values:

Year Assessed Taxable Rate of Inflation
2015  81,000  74,703  1.6%
2016  84,600  749527  0.3%
2017  89,000  75,601  0.9%
2018    77,188  2.1%
2019    79,041  2.4%

 

Year Assessed Taxable Rate of Inflation
2015  91,000  89,846  1.6%
2016  95,100  90,155  0.3%
2017  100,100  90,926  0.9%
2018    92,835  2.1%
2019    95,063  2.4%

Taxable Value
This 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 Township does 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 Transfer
When 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.

The Role of County Equalization
Every 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 Study
This 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.

Inflation Rates
2016               0.3%
2017               0.9%
2018               2.1%
2019               2.4%

Our 2019 Numbers:

Class 2019 Sales Ratio Multiplier
Residential 48.74% 1.0258
Agricultural 46.50% 1.0752
Commercial 50.99% 0.9805
Industrial 49.53% 1.009

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 Review
Every 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.