The tax assessment's in the mail

By John Hendler
News Editor

Most homeowners have or will receive their tax assessment change notices by next week and for many, they will see that their property values have dropped but will be paying higher taxes as their taxable value has increased by 4.4 percent.
As a result, local cities and townships are bracing for a higher number of people that will come before their respective boards of review in the coming weeks to voice their concerns.
In 1994, Michigan voters passed Proposal A, which placed a limit on the value used to compute property taxes. In 1995, property taxes were calculated on taxable value, whereas, prior to that year, taxes were calculated on a property’s State Equalized Value or SEV, which is approximately 50-percent of a property’s market value.
“Part of Proposal A was that you were not paying your taxes on the SEV any longer, you were going to pay it on the taxable value,” said Marshall Township Zoning Administrator Susan George. “The taxable value is interesting and that is where all the fuss is. The taxable value can only go up a maximum of five percent a year or what the cost-of-living index is whichever is less. Typically, that’s been around 2.5 percent.”
The “fuss” that George mentioned has to do with this year’s 4.4 percent increase in an owner’s taxable value, even though home values have been on the decline over the last couple of years.
George said that not all people understand that they are not paying on the SEV and that adds to the confusion and points out that Proposal A, at least in the long run, has been a good thing.
“Let’s say you’ve been in your house for 20 years,” she said. “Well, it wouldn’t matter because it will go back to when Proposal A started in the mid ‘90’s. At that point your SEV and taxable value were the same number and hopefully your SEV would have jumped, which is a good thing. But, the taxable can only go up with the cost-of-living index. So, the longer you own your house, the better a deal it is.”
The might be of little solace to those who have purchased a new home recently and George said they are the ones who have been hit hardest.
“They say, ‘If I can’t sell my home for what it’s worth, then why are my taxes going up at all?’” she said. “Then, if they see their SEV go down, then, they’re really wondering why their taxable value is going up.”
George said she understands where homeowners are coming from, especially in a recession economy.
“They’re having tax issues and money problems,” she said. “They’re scared to death.”
George said the calls have started to come in with those unhappy about paying higher taxes.
“Their only option is to talk to the assessor and if they can’t resolve the issue, go to the board of review,” she said.
She said that the board of review could help if someone disputes their property’s value and gets an actual appraisal.
George said that citizens think that the assessment process is a subjective one, but pointed out that that is far from the case.
“It’s all plugged into an equation,” she said. “If someone really has an issue, the assessor will tell them to get an appraisal and if it turns out that it’s valued wrong, then she’ll change it. She doesn’t have a dog in the fight.”
Robyn Kulikowski is the assessor for Marshall Township as well as for Convis, Sheridan, Marengo and Clarendon Townships.
“We always encourage people to come in and see their assessor,” she said. “If there is a real problem, I can take care of that if there’s a problem, a mistake, an error or something like that. If I’m saying one thing and you’re saying another and we can’t come to a decision, then they should go to the board (of review).”
Kulikowski said that all assessment notices came with an explanation of why taxable values had increased in hopes that she and the boards of review of each township won’t be “bombarded” with upset citizens.
“A lot of residential properties are seeing a decrease in their assessed value, but their taxable value is going up 4.4 percent and I let them know that I can’t change that and neither can my board of review,” she said. “At each one of my townships, I’ll have a list of all legislators that they can call and try to change this law because I agree with them; we should not be taxed 4.4 percent on our taxable value when our (home) values are going down. I can’t change it, but I give them an avenue to try to.”
Kulikowski said citizens can check out two Web sites to help them understand how the rate was calculated: www.michigan.gov/propertytaxestimator and www.michigan.gov/treasury/0,1607,7-121-1751---,00.html.
“They’re good Web sites and they will also have a list of all the people that make the laws,” she said. “People can write or e-mail those that make the laws, and they can use their voice and put it to work. The only way I can help them is to educate them.”
Kulikowski said this is a classic case of not directing anger at the messenger.
“I’m just trying to help them to get past their anger and go through their legislators,” she said. “We’ve got to educate the public to make a change. And it’s not by yelling at us.”
Fredonia Township Supervisor Dave Sebring said he’s expecting a lot of angry people to come before the board of review, but hopes they might not come in if they understand he has nothing to do with the tax increase, but can see how people still would want to discuss the matter.
“Our local board of review has no control over that and the local assessor has no control over that,” he said. “I’m hoping to cut down the door traffic. Normally, we’ll have 75-80 people come in during the two days. This year, we’re probably going to have to add an extra day.”
Even though Sebring said the board or review couldn’t help someone with the 4.4 percent tax increase, those with unique circumstances can be helped.
“Say half your house burned down,” he said. “There, the board of review can do something for you.”