Property Tax TutorialThe Board of Review is scheduled to meet on March 3, 2009, and March 9, 2009, to hear appeals related to property values and to consider poverty exemptions. To file an appeal for the Board of Review to consider, please obtain a petition or application at City Hall. If you cannot personally appear before the Board of Review, you may submit your appeal or application via mail. All letters must be recieved no later than March 9, 2009.
Since asessments and property values can be somewhat confusing, please take the opportunity to review the following information. In the early 1990's, the voters in Michigan amended the Michigan Constitution with Proposal A. In short, property taxes could not increase annually by more than five percent or the rate of inflation, whichever was less. Since the rate of inflation since the enacting of Proposal A, property taxes have increased only at the rate of inflation, while property values have increased markedly more. For illustrative purposes, please see the graph to the left. Point 'A' is when Proposal A came into effect: a resident's property value (commonly called Assessed Value) was approximately the same as the property's Taxable Value. Over time, the Assessed Value (the blue line) increased more rapidly than the Taxable Value (the red line), due to the constraints imposed by Proposal A, limiting any increase in the Taxable Value as mentioned above. At the height of the housing and property boom, the difference between the two values was significant, as illustrated by Points 'B' and 'C': homeowners were paying taxes on a value much lower than that actual value of their property for several years.
Unfortunately, the housing boom faltered and the economy has soured, resulting in declining property values. Many property owners are confused and upset that, despite the apparent decline in their Assessed Value, their Taxable Value continues to rise. Again, for illustrative purposes, please refer to the graph to the right. The housing boom reached its peak at Point 'B,' with property owners paying taxes on that same property valued only a Point 'C.' As property values (the blue line) now decline toward Point 'D,' the Taxable Value (the red line) still continues to rise (toward Point 'E'), since it is still below the blue line. In fact, red line will never go above the blue line! In a worst-case situation, if the blue line continues to fall, when the red line meets the blue line, the red line will follow the blue line downward. The long-term effect of Proposal A, though, is that property owners have greatly benefitted by being taxed at a lower value than the true value of their property.
This tutorial hopefully offers a somewhat clearer picture of this confusing topic. If you wish to discuss property taxes in additional detail, please contact City Hall.
Departments - Assessor Departments - City Treasurer
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City AssessorKim Feigley, CMAE III and State Licensed Appraiser, was contracted as the City Assessor in July, 2006. Kim began her assessing career in 1979, and has brought to Davison her experience in Independence, Orion, and Brandon Townships and the City of Farmington Hills. Ms. Feigley also has work experience in Lapeer County communities.
The City Assessor is statutorily required to determine the assessable and taxable value of all real and tangible personal property within the City. The General Property Tax Act of the State of Michigan states that the taxable status of all real and personal property shall be determined as of each December 31st, which is deemed Tax Day.
Approval of Proposal A on March 15, 1994, brought significant changes to the property tax system. It, however, did not change the fact that all real and personal property must still be assessed at 50% of its true cash value. The two biggest changes of Proposal A were the requirement of the Assessor to calculate a property's "taxable and capped value" and the requirement of homeowners to file Homeowners Principal Residence and Property Transfer Affidavits forms. Property taxes are now calculated using a property's taxable value, rather than the assessed, or state equalized, value. You can access more information on Homeowners Principal Residence, Property Transfers, and other related property assessment information by visiting the State's Department of Treasury web site.
The City Assessor utilizes various information when estimating the market or true cash value of a property. This information may include legal descriptions, property improvements, lot dimensions, age of home, and/or other buildings, land value, building square footage, and sale information. The Assessor does not create value. The value of your property is created by economic forces in the market of buyers and sellers. This information is all public information and can be obtained through the Assessor's Office.
All property owners have the right to appeal each year the assessment and taxable values that are calculated and placed against their property. An appeal must be made to the City's Board of Review in March, in order to preserve the right to a further appeal to the Michigan Tax Tribunal.
Assessors are always the first ones blamed for rising taxes. They do not establish tax rates nor decide how much taxes are to be paid. The Assessor's task is to estimate the fair market value of your property. To see an example on how to estimate your Summer and Winter taxes, click "ESTIMATE YOUR TAXES".
Even though the City Assessor has a statutory duty to assess your property, she has a larger responsibility in making sure you are familiar with how the system works. Please call City Hall if you have any questions.
Departments - Assessor
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