QUESTIONS AND ANSWERS ABOUT PROPERTY TAXES
What is taxable value?
The taxable value is the value on which property taxes are calculated. It can be found on the property tax statement or by contacting the local assessor.
What is a millage rate and where do I find it?
The millage rate can be found on the property tax statement or by contacting the local treasurer. Millage rate is the rate at which property taxes are levied on property. A mill is 1/10000 of a dollar. Property taxes are computed by multiplying the taxable value of the property by the number of mills levied.
Does college or university housing qualify for a homestead credit?
What does "taxes levied" mean?
Taxes imposed or billed. The property tax credit is based on taxes levied for the year of the claim regardless of when the taxes are paid.
Where do I get property tax statements if I am buying a home and only received a mortgage interest statement?
You can request copies of property tax statements from your local Treasurer's office. $2.00 for owners and $5.00 for mortgage and title companies, or other various agencies.
If I have vacant parcels that are adjacent or contiguous to my homestead, may I claim the taxes on them?
yes, unless the parcels are rented to someone else. If you are claiming multiple vacant parcels that are adjacent and the contiguous make sure to use the combined taxable value of all parcels for credit computation.
If my homestead percentage indicated on my tax statement is other than 100% or 0%, how do I compute my taxes?
If your property is less than 100% homestead (perhaps you rent a portion of your home or use your home for business) you must subtract the School Operating Tax and any special assessments that were charged from the total taxes levied. Then multiply the balance by the percentage indicated as homestead to compute the new taxes levied amount that can be used for credit computation.
Contact your local assessors office if you believe the homestead percentage reported on your tax statement is incorrect.
If I bought or sold my home during the tax year, how do I compute my taxes?
If you bought or sold your home, you must prorate your taxes. Complete Part 1 (lines 36-42) of the MI-1040CR to determine the taxes that can be claimed. Use only taxes levied in the tax year of the claim, and then prorate taxes based on days of occupancy. You may not claim more than 365 days total.
Where do I find the school district code?
The school district code can be found on your property tax statement or by contacting your local tax office.
When can I claim special assessments?
Most special assessments for drains, sewers, and roads, etc. may not be included as property taxes levied. You may include special assessments only if they are billed using a millage rate or are based on taxable value and are either levied in the entire taxing jurisdiction or they are used to provide police, fire or advanced life support services and are levied township-wide. If you have any questions regarding your special assessments and whether they can be included as taxes levied on your homestead property tax credit claim please contact our office.
Following are some examples of special assessments:
- Solid waste fee
- Delinquent water chares
What is a homestead?
A homestead is the primary dwelling of an individual, either owned or rented. You may not claim a property tax credit on a second home or property that you rent to someone else.