ASSESSOR's OFFICE

Jim Uyl
Township Hall: Monday & Thursday

PROPOSAL "A"
After operating under Proposal 'A' there is still a great deal of misunderstanding and confusion regarding proposal 'A' and the effects it has had on property taxes.

Proposal 'A' of 1994 was an amendment to the constitution of the State of Michigan. Proposal 'A' established a CAP for the taxable value of a property.

Two factors can cause an increase of a property's taxable value. First, is the current year's Consumer Price Index or CPI. The CPI for 2004 was 2.3% which means the 2003 taxable value for your property can only be increased 2.3%. The second factor that could cause an increase would be new construction. Otherwise, the taxable value remains capped.

The taxable value of a property can only be uncapped if the property is sold in the previous year. Then a new taxable value is set for the purchaser.

Assessed Values are still maintained on the tax rolls at 50% of the market value of the property. This assessed value is what is used to establish the new taxable value upon the sale of the property.

The success of proposal 'A' can be seen in the fact that the vast majority of properties in the State have taxable values significantly lower than their assessed values.
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HOMESTEAD NOW KNOWN AS PRINCIPAL RESIDENCE EXEMPTION
Every property owner who occupies their dwelling in the State is entitled to a "Principal Residence Exemption", which is a deduction of 18 mills on their principal residence and contiguous property in the same ownership. The 18 mill reduction is also available on property that is classified as agricultural

If you have any questions regarding Proposal 'A', or the "Principal Residence Exemption" call the Township.