The decline in the housing market values has slowed in Gaines Township this past year and will be reflected when assessment change notices are mailed in late February. Residential assessments will decrease an average of 1.0% in 2012. The decrease applies to areas that have had properties sell for less than double the assessed value. Some properties will increase if sales in their area indicate the assessments are too low. The changes are determined by the average relationship of sale price to assessment in a given area. If property sales are limited or non-existent in a neighborhood, the average change from surrounding neighborhoods will be taken into consideration to determine the percentage change in assessment.
As mandated by law, the sales used to determine the 2012 assessments occurred between October 1, 2010 and September 30, 2011. The listing of the sales used is available on the Township website. (Please note that, based on strict guidelines issued by the State, foreclosure sales are typically not considered when determining assessments.) Agricultural properties will also see minimal reductions, similar to residential properties. Most Commercial and Industrial properties will see decreases for 2012 as well.
As required by the constitution (Proposal A amendment), there is a predetermined rate of change used as the basis for determining taxes. The CPI (consumer price index) this year is 2.7%. This rate will be applied to the 2011 taxable value to determine the 2012 taxable value. If the assessed value and taxable value are the same, and the assessed value is reduced more than the CPI, these two values will continue to be equal. The CPI does not apply to properties that have sold or made improvements during the year. It also does not apply to improvements that were discovered during our annual visits to properties in reappraisal areas.
APPEAL INFORMATION
Assessment Change Notices (State Form #L-4400) will be mailed the last week of February. Please review this notice carefully. In addition to valuation changes, it indicates Principal Residence and property transfer status as well as property classification. The Board of Review will meet, on an appointment basis, March 12 and 13, 2012 to hear appeals. If, after you receive your Assessment Change Notice, you believe the assessed valuation on your property does not accurately reflect market value, please call 698-6640 to schedule an appointment. If you find inaccuracies in ownership, property transfers or residency exemptions, please contact us to address those issues in the Assessing office.
GENERAL INFORMATION
Principal Residence Exemption Audits are currently being conducted in Gaines Township. The State of Michigan has contracted TMA Associates to verify the validity of exemptions that have been claimed. If you no longer qualify for the exemption (you must own and occupy your home as your principal residence to qualify), please contact our office to rescind the exemption.
Assessment data is available at gainestownship.org, under “Tax & Property Info”. You are encouraged to review your property characteristics to confirm our data is accurate.
