| 1. When do assessments occur? |
Assessments of each property are reviewed annually. The assessed values are calculated as of tax day each year, which is Dec. 31.
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| 2. How much revenue is generated by the property tax? |
Property tax generates approximately 37% of the City's operating revenue. |
3. What is the difference between an
Assessment and Market Value? |
An Assessment is 50% of the appraised value done by an appraiser using "mass appraisal methods", and is limited by the current State Standards for Mass Appraisal and the amount of funding provided for government assessment work. Market Value, determined by Fee Appraisals, is completed by using the most current sales to arrive at a "Current Market Value". The intended purpose of this type of appraisal may require a much more detailed review of various elements of the appraisal process and methods and how those impact value.
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4. Are Taxable Value and Assessed Value the Same?
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No. Taxable Value, once established, can only rise by the Consumer Price Index to a maximum of 5% per year, except in the year following a sale. Assessed Values may experience a gain greater or less than the CPI or 5% because they are not at 50% of the True Cash Value/Market Value.
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5. If I do not like my Assessment
what can I do?
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Appeals can be started with the Assessment Office, then the Board of Review and finally with the Michigan Tax Tribunal. Proceeding in this order is critical for advancement to the next level, and in many cases the next level is more formal and farther away. See the Calendar of Events and contact our office for more details.
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6. Am I required to file a Property Transfer Affidavits?
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Yes. All property transfers of ownership occurring in the State of Michigan since 1994 must be reported on a Property Transfer Affidavit form to the local Assessing Office within 45 days of sale or transfer to avoid penalties.
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7. Why do I need to file this form?
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State Law requires it. The law was a compromise to allow Homeowners the ability to receive a reduction in taxes while they lived in their home, but with the requirement that after they sold/transferred the property the Taxable Values would be readjusted to the current true cash value. |
8. What is considered a Transfer or Sale?
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Whenever a person or entity receives an interest in a parcel of property. This can include adding a son or daughter to a parcel or adding a new partner to a business. There are many different examples of this, and while the specifics of one transfer may trigger a change in Taxable Value, others may not. Please contact us or your attorney if you have specific questions.
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9. What are Personal Residence Exemptions?
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Personal Residences are properties that serve as your principal home. They are not cottages, summer homes, etc. Homesteads are the property at which you reside and receive your mail, etc. for the majority of the year. The local Ludington Area School tax is removed on these properties when you declare them to be your "Personal Residence" and therefore your property taxes are reduced. You may not have more than one "Personal Residence".
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10. When can I receive a
Personal Residence Exemption?
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You must file the Personal Residence Exemption with the local Assessor and meet the "Own and Occupy by May 1st " standard test. If you do, the tax reduction will occur with the summer billing of the next year.
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11. What if I didn't file?
Can I file now?
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Yes. Submit a completed form immediately. Some people may not qualify for the current year, but may in the next. Each case is reviewed individually and may have circumstances that allow for previous years to be corrected. Without an application no action is taken.
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12. Can I take the house in town as my
homestead and my wife take
the cottage as hers?
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No. This attempt to receive a dual benefit can result in full taxes being levied on both properties for all previous years, due and payable immediately, a severe penalty and shock to one's budget. |
13. We move to Florida in the winter;
can I still have a Michigan
Homestead Exemption?
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Yes. However, if at some point you declare yourself a Florida resident and/or are spending more than 6 months there, then you may no longer qualify for the Michigan Exemption. |
14. What is a Poverty/Hardship Exemption?
How do I qualify? And when do I file?
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Poverty/Hardship Exemption Forms are for one-year exemptions from a portion of property taxes and must be requested annually. To be considered for this exemption, you must have an income less than or equal to the Federal Guidelines for the Poverty Income Level, then you need to complete a form requesting this exemption and supply the necessary documents to support your request.
Some of the documents required are State and Federal Income Tax Returns, Income and Expense statements and their supporting verification documents.
Some people may only qualify one year and not the next, but in order to be considered they must reapply annually in the month of December.
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15. How long does this Poverty/Hardship
Exemption last?
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One year. You must reapply each year. |
16. Will all of my property taxes be exempt?
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No. Most exemptions are only partial amounts. |
| 17. How are street addresses assigned? |
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All addresses are assigned by the City Assessor's office |
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PH: (231) 843-2956 | |
