- Assessed Value* represents 50% of your property’s “usual selling price”. This changes from year to year based on the economy, the value of the dollar, the “market”, what someone is willing to pay. For residentially classed properties the total township change is determined based on sales compared to assessments. County appraisal studies determine the change needed for Agriculture, Commercial and Industrial classed properties, still based on “usual selling price”.
- Taxable Value* is what taxes are based upon and is the lesser of Assessed Value and Capped Value. Capped value is last year’s taxable value times the increase in the CPI. Of course, if you add NEW, i.e. a pole barn, half the value of the pole barn is added to the taxable value along with the CPI increase.
- Uncapping* a property occurs the year after a property is “transferred”. The cap on value is removed and the taxable value will be the same as the assessed value.
- Property Tax* is the taxable value times the millage rate. There are two rates. Principal Residence Exemption and Qualified Agricultural parcels have a rate 18 mills less than the full millage rate.
- Example: A taxable value of 100,000 times a millage of 30.5820 (a mill is a thousandth of a dollar) = $3,058.20. Easier yet: Taxable Value divided by 1000, times the millage rate equals tax.
- The Principal Residence Exemption* must be established by June 1 for summer taxes and November 1 for winter taxes. This is your residence which you own and occupy as documented by deeds, the voter registration roll, your driver’s license, and income tax returns.
- *The above is set by state law, much of which was added by the passing of Proposal A in 1994.
Note: Class and zoning are not the same thing. The agricultural zoned part of the township is filled with agriculture, residential and industrial (Consumers ROW) class properties. Zoning determines how you can use land and is set by the township. Class determines how the county studies value and is set by the assessor according to state law.