How can I calculate my taxes?

Assume the Taxable Value for your property is $100,000 and the annual millage rate is 44.2241 Mills.
Your tax amount due would be calculated as follows:
$100,000 x .0442241= $4422.41 Annual Taxes Due

This is intended to be a simple demonstration of how property taxes are calculated. The assessing department does not compute or collect property taxes. For detailed questions, please contact the TOWNSHIP TREASURER'S OFFICE.

How will it affect my taxes if I build an addition?

Let’s establish some assumptions: the property has a current Taxable Value of $120,000.
Consumer Price Index to be 2.3%
The True Cash Value of the addition will be $50,000
Annual millage rate is 26.6 Mills
Construction will be complete by tax day (Dec. 31)

For the following assessment year, the calculation is as follows:

(120,000-0) x 1.023 + 25,000=$147,760 (New Taxable Value)
$147,760 x .0266=$3,930 Annual Taxes

Let’s Compare: Had there been NO construction, the Taxable Value would have simply increased by the lesser of C.P.I. or 5% (2.3% in our example).
$120,000 x 1.023=$122,760 (Taxable Value)
$122,760 x .0266=$3,265

So, due to the new construction, the additional annual tax liability would be $665. Note: A quicker, more simplistic calculation:
$25,000 (1/2 Value of New Construction) X Millage (26.6) = $665

What are the tax ramifications in purchasing a new home?

If you purchase a home in 2005, your property’s Taxable Value will “uncap” for 2006. (Please review the Proposal A Section for clarification). To demonstrate, let’s utilize the following example:
Property X has a 2005 State Equalized Value (SEV) = 250,000
2005 Taxable Value (TV) =137,863

Let’s assume that the 2006 State Equalized Value = 260,000
The new 2006 Taxable Value = 260,000.

While the previous owner had a 2005 annual tax liability of $3,667 (assuming Homeowner’s Principal Residence Status)…the purchaser’s 2006 annual tax liability will be $6,916 (assuming Homeowner’s Principal Residence Status).

What is the best time of year to purchase property?

Since Michigan Property Tax law mandates an uncapping of Taxable Value the year following a sale, consider this: Tax day is December 31st. If one were to purchase property January 1st: the purchaser has the advantage of a “capped” taxable value for the next two tax billing cycles (summer & winter). If one were to purchase property December 31st: the purchaser is subject to the UNCAPPED Taxable Value for the immediate tax billings. Therefore, the greater benefit befalls those purchasing property earlier in the year.