Township Assessor

The market value of your property is simply the probable price that it would sell for in an arm’s length transaction between a willing buyer and willing seller. In Michigan, market value is defined as “true cash value.” This is the valuation process because the market value of almost everything changes from one year to the next.

Every assessor is required by state law to assess at 50% of true cash value all assessable property as of December 31. This includes homes, industrial facilities, commercial properties, and vacant land.

State Equalized Value equals 50% of Market Value or True Cash Value.

Taxable Value is the lesser of the State Equalized Value (SEV) and Capped Values. The Taxable Value is the value used for the calculation of property taxes.

A Principal Residence Exemption (PRE) exempts a residence from the tax levied by a local school district for school operating purposes up to 18 mills.

To qualify for a PRE, a person must be a Michigan resident who owns and occupies the property as a principal residence. The PRE is a separate program from the Homestead Property Tax Credit, which is filed annually with your Michigan Individual Income Tax Return.

The Principal Residence Exemption (PRE) Affidavit, Form 2368, may be downloaded from this page. Check the "Michigan Department of Treasury Forms" drawer in the page file cabinet.

Unfortunately, there isn’t a yes or no answer to that question. If you’ve owned your property for a significant amount of time, more than likely your State Equalized Value (SEV) far exceeds your Taxable Value. If this is the case, a decrease in valuation, caused by a slow real estate market, will be reflected in your SEV. The taxable value is required by the Michigan Constitution to increase each year by the rate of inflation or 5%, whichever is lower. In the case of a longtime property owner, SEV could decrease, while the Taxable Value will continue to increase.

The only way the Taxable Value can be uncapped is when the property is sold or transferred to a new owner.

The simple answer is that it is against the law. MCL 211.27 states that the purchase price is no longer the presumptive True Cash Value of a property. The assessment may be close to 50% of the purchase price but is determined by investigating the other sales in the area of the property and SEVs are set using that sales study.

By law, the only time you may appeal your assessment is after you have received the Change of Assessment notice, typically in March of every year. Once you have received the subject notice, you may contact the Assessors office and make an appointment to file a petition for appeal with the Pentwater Township Board of Review.

A "Petition to Board of Review" form may be downloaded from this page. Check the "Michigan Department of Treasury Forms" drawer in the page file cabinet.

No. The decisions are only binding for the current tax assessment year.