When are my taxes due?
Village property taxes are collected annually and due in the Township Office by 5:00 pm on or before September 14th without penalty. If September 14th falls on a non-business day, due day is the next business day. Please verify due date printed on your current tax statement. There is a 24-hour drop box located to the right of the entrance.
Township property taxes are collected twice per year. Summer taxes are due in the Township Office by 5:00 pm on or before September 14th. Winter property taxes are due on or before February 14th at the Township Office. If either date falls on a non-business day, taxes are due the next business day after due date. Please verify due date on the printed statement.
All unpaid taxes are paid to Oakland County as of March 1st with additional penalties added.
I need a copy of a paid receipt, where do I get one?
The Treasurer can provide you with a copy of your paid tax bill.
Who receives the funds from my tax bills?
The Village tax funds stay in the community and cover Village operating and all local voted millages.
The Township tax funds are distributed to several entities: State of Michigan (education), Oakland Community College, Oakland Intermediate Schools (allocated and voted), local schools (allocated and voted), County operating, Township operating, Oakland County Parks and Recreation, Huron Clinton Metro Authority, Zoo Authority, Art Institute, and the Oakland County Public Transit Authority.
What do the terms Assessed Value, State Equalized Value and Taxable Value mean on my Notice of Assessment?
A basic knowledge of these terms will help you better understand Michigan property tax laws.
1. Assessed Value - the assessed value helps determine market value. Set by the assessor, the Assessed Value when multiplied by two will give an approximate market value of the property. The assessor is constitutionally required to set the assessed value at 50% of the usual selling price or True Cash Value of the property.
2. State Equalized Value (SEV) - SEV is the Assessed Value that has been adjusted following county and state equalization. The County Board of Commissioners and the Michigan State Tax Commission must review local assessments and adjust (equalize) them if the values are above or below the constitutional 50% level of assessment.
3. Taxable Value - the amount used to determine tax dollars owed. Multiplying the Taxable Value by the local millage rate will determine your tax liability. Taxable Value increases year to year by the rate of inflation or 5%, whichever is lower. Transfers of ownership and improvements to the property may increase the Taxable Value more than the rate of inflation.
What determines the Taxable Value?
On March 15, 1994 Michigan voters approved the consitutional amendment known as Proposal A. The Taxable Value was created as part of this legislation. Taxable Value, or the figure that is multipled by the millage rate, can only increase each year by the rate of inflation or 5% whichever is lower. The Taxable Value on the property is said to be 'capped' if the property owner has not had any additions or losses on the property or did not purchase it in the preceding year. The legislators who wrote and put Proposal A on the ballot intended to put a cap on the value of the property to tie the increase in valuation to the inflation rate so that taxpayers wouldn't be as affected by a robust upswing in the housing market.
What other factors would cause an increase in my taxes?
The Taxable Value is required by the Michigan Constitution to increase each year by the rate of inflation or 5% whichever is lower. However, taxes can increase above this amount if the citizens of Beverly Hills have voted for any special revenues, such as a school improvement bond.
Property values in my neighborhood have been decreasing, will my property valuation decrease as well?
Unfortunately there isn't a yes or no answer to that question. If you have owned your property for a significant amount of time, it is more likely that your State Equalized Value (SEV) far exceedes your Taxable Value. If this is the case, a decrease in valuation caused by a cooling real estate market will be reflected in your SEV. However, if you are a longtime property owner, the SEV could decrease while the Taxable Value increases.
Does this mean I'll have to pay more property taxes instead of less?
In the previous scenario, yes. The Taxable Value will rise by the inflationary increase; this figure multiplied by the local unit's millage rate will determine your annual property tax liability.
Why won't my taxes decrease if my property value is decreasing?
Proposal A allowed many residents to pay property taxes on less than half of their home's market value by 'capping' the Taxable Value at the same time still allowing the assessor to determine the market value by adjusting the SEV. This caused, for many property owners, a great disparity between the SEV figure and the Taxable Value. The assessor can reduce the SEV to reflect the changes in property value but if the Taxable Value is still below the SEV your tax liability will continue to increase until the two figures match.
Will my taxes ever decrease?
If a property's value decreases each year, the SEV will evenutally equal the Taxable Value. Since the Taxable Value cannot exceed the SEV, subsequent decreases in SEV will cause a decrease in Taxable Value which will lower your property tax liability. For many homeowners, due to the gap between the SEV and Taxable Value figures, it would take several years of depressed market conditions to make the SEV and Taxable Value equal. If you recently purchased your home, it is more likely your SEV and Taxable Value are close or already equal.
What are some disadvantages of the Proposal A legislation?
Unfortunately, there have been a few downfalls. Three complaints we hear regularly are:
1. Neighbors with similar properties pay different tax amounts.
2. Uneasiness about moving into new property for fear of a high tax increase.
3. Property tax liability increasing while the real estate market decreases.
What is the Principal Residence Exemption?
If you own and occupy a home on your property by May 1st last year, you are entitled to a Principal Residence Exemption. On the Assessment Notice, the exemption will be illustrated by 100.00% (homestead) if you are eligible or 0.00% (non-homestead) if you are not eligible. You are only entitled to one Principal Residence Exemption in or out of the State of Michigan. A property owner will pay a lower millage rate on their primary residence.
Principal Residence Expemtion does not impact the Village tax liabilty.
Can I contest my Assessed and Taxable Values?
Every property owner has the right to appeal their assessments however, the opportunity only comes once per year. The Yearly Assessment Change Notice will provide you with the dates and times for the March Township Board of Review. If you wish to contest your assessment, you must make an appointment to appeal to the Board of Review. A nonresident may protest by a letter that is accompanied by a completed Board of Review petition. Protest at the March Township Board of Review is necessary to protect your right to further appeals to the Michigan Tax Tribunal for valuation and exemption appeals. If you miss the March Board of Review, you cannot contest your assessment that year, nor will the Michigan Tax Tribunal hear any cases not heard by the local Board of Review.
What is a mill and how can I determine my annual tax bill?
One mill is equal to $1.00 per each $1,000 in Taxable Value. Your annual tax amount can be calculated by multiplying your Taxable Value by the millage rate and dividing the product by 1,000. If you recently purchased your home, use 1/2 of the purchase price as your Taxable Value to estimate your tax liability. For example, if your Taxable Value (or 1/2 purchase price) is $90,000 and the millage rate is 39.961 your annual tax liability would be $3,596.49. (90000 x 39.961) / 1000 = 3596.49.