Assessing Department update
April 17, 2020
The Traverse City market place has proven resiliency through past economic challenges. Our area is a beautiful, desirable, and vibrant city, with devoted property residents and owners, who want to preserve the value of Traverse City at its best at all times.
It is too early to assess the impact of COVID 19. Predictions at this point are just guesses.
The current 2020 assessment values and property tax bills are based on values that were established through sales analysis that occurred from April 1, 2017 through March 31, 2019.
It should be noted that real estate appraisers as well as realtors use historic sales and market data to current perform valuation services and listing price analysis. Market reactions from April through September will be evaluated and measured for the analysis and valuation for the 2021 Assessment year.
The month of March started out to be a strong spring buying season, as was expected, and the sales, for the City of Traverse City, did not reflect a change in market statistics.
Residential and commercial sales data tracking for the month of March resulted with comparable statistics as for the same period in 2019. Additionally, sales data was reviewed from March 20th through the end of the month, and when compared to the same 2019 time period the volume and sales ratios for these two weeks were comparable as well.
Property owners will not see the effect of COVID19 transactions until next February 2021, when the 2021 Assessment Change Notices are produced.
The Assessing Department is cognizant of the current changes, and will provide periodic updates for publication regarding real estate transactions for the next years (2021) Assessment cycle.
Polly Cairns -
The Assessing Department
Polly & Dave & Erik & Dan
Dept photo - left to right - Dave (Deputy), Polly (City Assessor/Dept. Head), Erik (Senior Appraiser), & Dan (Property Appraiser).
PLEASE CALL OR EMAIL
231-922-4450 * firstname.lastname@example.org
Phone calls and emails are checked periodically each work day.
If you need to drop off documents please either send through email, mail, or drop in the red box out front near the mail box, and make sure it is addressed to the Assessing Department.
The Assessing Department is entrusted with the responsibility of maintaining the City's assessment rolls for all assessable property, both real and personal, located within the City limits for Grand Traverse & Leelanau Counties.
Assessment and taxable value determinations are made in accordance with the requirements of Chapter 211 of the Michigan Compiled Laws (MCL), otherwise known as the "General Property Tax Act" (often referred to as the GPTA).
City Assessing Department staff continually is in the field updating property record card information, photos, and sketches; performing onsite property inspections for the City’s commercial, industrial, and residential neighborhoods.
State Tax Commission recommends all properties be re-inspected every 5 years to update property information and assure more accurate and equitable assessments.
For property owners not at home, a property survey sheet will be left at the property. We request you complete the form and return at your earliest convenience.
Please contact us with any questions or concerns. 231.922-4450.
Thank you for your cooperation.
City Assessing Department is responsible for the inventory of all property within the City and for valuation and maintaining property record information of all property both real property (land and buildings) and personal (tangible). It operates under the requirements of the General Property Tax Law which was originally P.A. 206 of 1893; Statutes can be found under MCL 211.1 through MCL 211.157. Primarily responsible for performing and maintaining property assessments for the equitable distribution of property tax burden.
Department compiles the annual assessment role on which taxes will be levied; maintaining property tax descriptions and maps, processes personal property statements, and conducts field audits of both existing properties and new construction located within the City of Traverse City. In addition, providing the City Treasurer with taxable value on all City properties, used to produce annual tax bills.
- Establish legal assessment roll and annually site visit 20% property
- Review and evaluate commercial and industrial property
- Site visit and review all new construction
- Continue public education in areas such as non-consideration forms, homestead applications, property transfers and personal property tax law
- Enhance and increase understanding of and compliance with property tax system as established by City charter and State law.
What is Assessed Value?
Assessed Value shall not exceed 50% of the True Cash Value (aka Market Value) of the property. Mass appraisal techniques are used to determine True Cash Value of each property every year to set Assessed Value at 50% of the True Cash Value for each class of property. True Cash Value of a property which is synonymous with market value.
The final SEV established for property, dependent upon property class, is a compilation and reconciliation of the Cost Approach, Sales Comparison, and Income Approach to value. A cost to construct is estimated for the property, which is then reconciled to market, by application of the ECF (Economic Condition Factor). Income producing type properties, i.e. Commercial/Industrial, go a step further and correlated through the Income Approach.
What is State Equalized Value?
State Equalized Value (SEV) is final Assessed Value after the County and State completed their equalization processes and certified Assessed and Taxable Values. Typically, the SEV is the same as the Assessed Value.
What is Capped Value?
Capped Value is a calculation of the previous year’s Taxable Value multiplied by the Inflation Rate Multiplier and adjusted for any physical changes in the property. The inflation rate multiplier is based on a two year average of Consumer Price Index CPI, the Inflation Rate Multiplier for 2015 is 1.016, same as previous year.
What is Taxable Value?
Taxable Value is determined by the lower of the Assessed Value or the Capped Value. Properties that transferred ownership in 2017 will have the Taxable Value set to Assessed Value for the 2018 tax year. Taxable Value is the basis of the property tax in Michigan and is multiplied by the millage rate to determine the tax amount each year. State of Michigan - Property Tax Estimator and Millage Rates link - www.michigan.gov/taxes/0,1607,7-238-43535_43540---,00.html
Michigan's 2018 average non-PRE property tax rate was 55.80 mills, and 37.80 mills for PRE per $1,000 of Taxable value, with real and personal property subject to taxation at 50% of current market value.
Public Act 147 of 1992, as amended and authorized by the State of Michigan, allows specific local governments to enact Neighborhood Enterprise Zones (NEZs). The City of Lansing has approved the designation of NEZ areas within the City as Neighborhood Enterprise Zones (NEZs). The purpose of establishing NEZs in Lansing is to promote home ownership and investment in areas where the greatest impact would occur and where such improvements may trigger additional investment in adjacent neighborhoods. The benefit of the NEZ Program to property owners in these areas results in lower property taxes.
Renaissance Zones were created by the State of Michigan under Public Act 376 of 1996 in order to stimulate economic growth in certain urban communities. The Renaissance Zone designation exempts properties within its boundaries from all operating millage for nine years. In years ten through twelve, a quarter of the operating millage is added back so by year thirteen the properties will be back paying full property taxes. This reduction in taxes is designed to assist developers and home buyers in an area by making it more affordable to improve their properties.
Michigan Legislature - Public Act MCL Search
A Brief History of Property Tax - I.A.A.O. www.iaao.org/uploads/A_Brief_History_of_Property_Tax.pdf