City of Alma, Michigan

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City of Alma - City Assessor

Brian Dancer - City Assessor

Pho: 989-463-8356
Fax: 989-463-5574
bdancer@ci.alma.mi.us

Notice of Board of Review

for the City of Alma

March 17, 18 & 19, 2009

Please take notice that the Board of Review will be in session Tuesday, Wednesday and Thursday, March 17, 18 & 19, 2009. The purpose is to review and equalize the assessment roll. Persons who believe that their 2009 assessed valuation or taxable value is incorrect must appear before the Board of Review or write a letter of appeal. Letters must be received prior to March 19, 2009. The Board of Review will be in session for appeals by appointment only on the following dates and times:

On March 17th and 18th the hours of appointment being:

9:00 a.m. to noon and 1:00 p.m. to 4:00 p.m. each day

Please call (989)463-8356 to schedule an appointment

The Board of Review will also meet on the evening of March 18th from 7:00 p.m. to 10:00 p.m. in open session and March 19th from 9:00 a.m. to noon and from 1:00 p.m. to 4:00 p.m. in open session. Appointments are not necessary.

The sessions of the Board of Review are open to the public and will be held in the Alma Municipal Building, 525 E. Superior Street, Alma, Michigan on the above mentioned dates.

Assessment Forms

All forms are in PDF format and can be downloaded and printed or completed on line. Please note, all forms with the exception of the Building Permit application may be e-mailed to the Planning & Zoning Department, but original, signed form and fees must be submitted prior to formal processing of applications.

Conditional Rescission of Principal Exemption (PRE) Frequently Asked Questions

Conditional Rescission of Principal Exemption (PRE) form & instructions

What does the City Assessor do?

The Assessor prepares and makes all regular and special assessments rolls for the City. The Assessor is the governmental official charged with annually discovering, listing, and valuing all taxable property in the City of Alma. The Assessor's authority is derived from the Michigan constitution, state statutes and the Alma City Charter. The primary responsibility is to find the fair market value of property, so that in proportion to this value taxpayers may contribute a fair share of support for the community services received.

When will my property be evaluated?

The taxable status of persons real and personal property for a tax year shall be determined as of each December 31 of the immediately preceding year, which is considered the tax day. An assessing officer is not restricted to any particular period in the preparation of the assessment roll but may survey, examine, or review properties at any time prior to or after the tax day.

How is the value of my property assessed?

To find the value of any piece of property the Assessor must first know the selling price of similar properties, what it would cost today to replace it, how much it takes to operate and keep it in repair, what rent it may earn, and many other dollar facts affecting its value, such as the current rate of interest charged for borrowing the money to by or build properties.

Utilizing these facts, the Assessor can then go about finding the property's value in three different ways:

The FIRST method is to find similar properties which have been sold recently. The selling prices must be analyzed very carefully to get at the true picture. One property may have sold for more than it was really worth because the buyer was in a hurry to occupy the property and would pay any price to get in. Another may have sold for less money than it was actually worth because the owner needed cash right away. In this event, the owner may have been willing to sell to the first buyer who made an offer. Using this approach - comparing the selling prices of properties similar - the Assessor must always consider such over or under pricing to arrive at a fair evaluation of a property's value.

The SECOND method is based on how much money it would take, at current material and labor costs, to replace a piece of property with one just like it. If the property is not new, the Assessor must also determine how much it has depreciated.

The THIRD method is used in addition to the other two for property that provides an income, like an apartment house, a store, or a factory. Here the Assessor must consider such factors as operating costs, the degree of financial risk taken in earning income from the property, and finally, the return most people would expect to get on this kind of property.

If the property is owner occupied, the Assessor of course, cannot use the third approach since no income is derived from it. The Assessor will consider all the relevant facts pertaining to property.

Why do assessed values change from year to year?

When market value changes, naturally so does assessed value, for instance. If you were to increase the total market value of a parcel of property by building a garage, the assessed value would increase proportionately.

Similarly, should a property's value be decreased by a fire or other catastrophe, the assessed value would decrease to show the downward effect of the damage on the market value of the property.

The economy of the entire community affects assessed value. Since for example the City of Alma has been growing steadily over the years and more and more property owners have rehabilitated or invested in new construction here, property values within most of the City have increased.

The Assessor has not created this value he simply has the legal responsibility to discover it as it exists and appraise property accordingly, since people make value by their transactions in the market place.

IMPLEMENTATION OF PROPOSAL A

On March 15, 1994, the voters of the State of Michigan approved Proposal A which includes significant changes to Section 3 of Article IX of the State Constitution.

The following language from Proposal A caused significant changes in property tax procedures starting with 1995 assessments.

For taxes levied in 1995 and each year thereafter, the legislature shall provide that the taxable value of each parcel of property adjusted for additions and losses, shall not increase each year by more than the increase in the immediately preceding year in the general price level, as defined in section 33 of this article, or 5 percent, whichever is less until ownership of the parcel of property is transferred.

When ownership of the parcel of property is transferred as defined by law, the parcel shall be assessed at the applicable proportion of current true cash value.

1. Effect of Proposal A on Property Tax Bills and the Creation of a New Term: TAXABLE VALUE

Property taxes are spread against Taxable Value rather than State Equalized Value (SEV). It is Taxable Value, Not Assessed or Equalized Value, that may be subject to limitation (Capped) because of the passage of proposal A.

Assessors are required to calculate a capped value for each individual parcel of real property. The capped value would then be compared to the state equalized value (SEV) of each individually assessed property and the lower of the two would become the Taxable Value upon which taxes would be levied.

2. Transferred Properties.

PA 415 defines transfers and also required that the "buyers" of transferred properties disclose to the assessing officer the following: (1) the parties to the transfer, (2) the date of the transfer, (3) the actual consideration for the transfer, (4) the property's identification number or legal description.

The taxable value of properties which have transferred in the previous year will be the current SEV of the property regardless of the answer produced by the Taxable Value formula. In other words, properties which transfer any time during the current calendar year will have their taxable values uncapped in the next year.

The taxable value of transferred properties may then be capped again in the second year following the transfer, if the capped value equation and the comparison of the formula items show that it should be limited.

GUIDELINES FOR THE MICHIGAN HOMESTEAD AND AGRICULTURAL PROPERTY TAX EXEMPTION PROGRAMS

FILING DEADLINES & CLOSING AGENT LIABILITY:

1. What is the deadline for filing a Homestead Exemption Affidavit?

ANSWER: The filing deadline is May 1st of each year

2. I moved to a different home before the May 1st filing deadline. May I claim my new home?

ANSWER: Yes. If you by a new home and move into it before the filing deadline, you may claim an exemption on the new home before the filing date. New residences may be claimed by filing a HOMESTEAD EXEMPTION UPDATE (FORM 2368) that is available at closing. If your agent does not provide you with a FORM 2368, call the Assessor's Office at 463-8356 and we will send you one.

3. May I, as closing agent, be held liable by a buyer or seller if the buyer isn't granted a homestead exemption because I did not provide either an update or an affidavit form, or I did not submit their form on time?

ANSWER: Closing agents are required to provide either an affidavit or update form at closing. However, PA 415 of 1994 provides that there is no legal course of action against the closing agent by the Buyer or seller if the agent fails to provide a homestead exemption form or fails to file the form with the local tax collecting unit when requested to do so by the buyer or seller.

RESCINDING AN EXEMPTION:

1. When I claim an exemption on my new residence, what happens to the exemption on the residence I sold?

ANSWER: The exemption on your old home remains in effect until December 31 of the year in which your home is sold. If you move to your new residence before your first home is sold, the exemption expires on December 31 of the year you move out. You must rescind you exemption within 90 days of the date you no longer own or occupy the property as you principal residence, whichever comes first. You may rescind your exemption and the new owner may claim an exemption on the same Homestead Exemption Update (FORM 2368) at closing. If your agent did not provide you with the FORM 2368, call the Assessor's Office at 989-463-5356 and we will send you one.

2. I am moving into a new home and converting my current home to a rental property in November. Do I have to rescind the exemption on my current home?

ANSWER: Yes, within 90 days of moving. The exemption will remain in place until December 31 of the year the use is changed from your principal residence to a rental property.

3. What happens when a lender has foreclosed on a mortgage and the home is now vacant?

ANSWER: The lender must rescind the homestead exemption using the Request to Rescind Homestead exemption (FORM 2602). If you need a FORM 2602, call the Assessor's Office at 989-463-8356 and we will send you one.

RESIDENCY:

1. What determines principal residency?

ANSWER: The test that the Treasury uses to determine principal residence include such things as; where you are registered to vote; the address on your driver's license; where your children attend school; and the address from which you file your income tax returns.

2. I own two homes in Michigan. For which home do I claim the exemption?

ANSWER: Claim the exemption for the home you occupy as your principal residence.

3. I own a home in Michigan and a home in another state. May I claim an exemption on my Michigan home?

ANSWER: You must be a Michigan resident to claim this exemption. You may claim your Michigan home only if you own it and occupy it as your principal residence. You may not have more than one principal residence.

OWNERSHIP:

1. May renters file for this exemption?

ANSWER: No. You must own your principal residence to claim an exemption for it.

2. My children own my home, but I hole a life estate. May I claim the exemption?

ANSWER: Yes. Complete the affidavit using your name, address, Social Security number and signature. Your children should not sign the affidavit.

3. I am leasing my home with an option to buy. May I claim my home?

ANSWER: No. Leasing with an option to buy is consider a rental arrangement; so the home is ineligible. Once you exercise to option to buy, you may claim an exemption.

QUALIFIED HOMESTEAD PROPERTY:

1. My home is in a licensed trailer park. My garage and shed are taxable. May I claim this exemption for the garage and shed?

ANSWER: Yes

2. I live in a nursing home, but still maintain my home. May I claim an exemption on the home that I own?

ANSWER: Yes, unless the home is rented to another person.

3. I own the lot adjoining and contiguous to my home, and it has a different property identification number than the parcel on which my homestead is located. May I also claim an exemption on this property?

ANSWER: You may claim an exemption on this property as long as the property claimed is adjoining or contiguous to your home and is classified as residential. A road does not break contiguity. File an affidavit for each parcel.

MULTI-PURPOSE PROPERTY:

1. I live in part of my home and operate a business in another part. May I claim an exemption?

ANSWER: Yes, but only on the portion of the property that is your home. You may claim the partial exemption even if the property is classified as commercial.

2. I rent a room in my home to a boarder. May I still claim an exemption?

ANSWER: Yes. If more than 50 percent of your home is used as your principal residence, you may claim an exemption for your entire home. If you use 50 percent or less of your home as a principal residence, a percentage of your home that you occupy will be used.

3. I own a duplex. I live in one unit. My father lives in another unit, but does not pay rent. May I claim an exemption on both units?

ANSWER: You may claim an exemption only on the unit you occupy as your principal residence even if there is an adjoining entrance between the units.