YOUR PROPERTY TAXES

Property taxes are levied on two types of property in the State of Michigan, "real property" (land and buildings) and "personal property" (machines, equipment, furniture, fixtures, and signs used by businesses). Each year the City Assessor's office estimates the value of all property in the city--both real and personal--as of December 31, otherwise known as "tax day." The valuation and condition of the owner's property on this date is used to determine its value.

A "Notice of Assessment, Taxable Valuation, and Property Classification" is then sent to all property owners about March 1. The notice indicates three values for each property: Assessed Value, State Equalized Value and Taxable Value.

EVERY PROPERTY HAS 3 VALUES

Assessed Value is equal to approximately half of the estimated market value of the property.

State Equalized Value (SEV) is the Assessed Value multiplied by an "equalization factor," a number that is determined by the County Equalization department which is usually 1. Therefore, Assessed Value and State Equalized Value are usually the same.

Taxable Value is the value used to compute the taxes on the property. Proposal A, passed by Michigan voters in 1994, places a limit or "cap" on the Taxable Value. Starting in 1995, if there is no transfer of ownership or if no improvements are made to the property, the increase in Taxable Value is limited to the lesser of the increase in the consumer price index (inflation rate) for the current year or 5%. If there is a transfer of ownership or if improvements are made to your property, the Taxable Value can increase to the State Equalized Value.

APPEALING YOUR ASSESSMENT

Every property owner has the right to appeal the values on the assessment notice to the Board of Review, which consists of three city residents appointed by the City Commission.

The Board of Review meets early in March each year.  The exact dates and times are listed on the assessment notice. You can schedule an appointment to meet with the Board or send a written appeal to the Board.

A written request must be postmarked no later than the second day of the Board of Review.

Citizens are notified in writing of the decision of the Board of Review. Decisions of the Board can be appealed to the State of Michigan Tax Tribunal; however, the Tax Tribunal will not consider matters that have not first gone to the local Board of Review.

CALCULATING YOUR TAX LEVY

Property taxes are calculated using the following formula:

Taxable Value ÷ $1,000 x millage rate = Tax Levy (amount of taxes to be paid).

The City Treasurer's office collects taxes levied by the City of Mt. Pleasant, Mt. Pleasant Public Schools, the State of Michigan, Gratiot/Isabella Regional Educational Service District (RESD), Isabella County, Isabella County Commission on Aging, and the Isabella County Transportation Commission. The millage rate is set by the elected officials of these governmental units or by the voters when a special millage levy is approved at an election.

ADMINISTRATION FEE

The City charges an administration fee of 1% on non-city tax levies to cover the cost of collecting taxes for other governmental units.

PRINCIPLE RESIDENCE PROPERTY

Principle residence property is exempt from the local "school operating" levy which is billed twice a year. Homestead property is defined as the owner's principal residence, the address on his/her voter registration and driver's license. Persons can have only one principal residence. Applications for new principle residence exemptions must be received by the Assessor's office by May 1. If a person's principal residence changes during the year, an Update Form must be filed with the City Assessor's office.

TAX BILLINGS

Taxes are billed in July and December. Summer tax bills are sent by July 1 and are due by July 31. Interest of 1% per month is charged on any unpaid balance, and the rate increases by an additional 1% each month. Taxpayers older than 62 who make less than $37,500 per year can file for a deferment of the due date to February 14. To file for a deferment, the taxpayer must contact the City Treasurer's office. Without a deferment, any unpaid balance of the summer tax and interest will appear on the winter tax bill and interest will continue to accrue at 1% higher than the previous month.

Winter tax bills are sent December 1 and are due by February 14. On February 15, 3% interest is added to the winter tax bill, while any unpaid summer taxes that were due 7 months ago will be charged 7% interest. In March, the interest will be 8%, and so on.

To avoid interest, tax payments must be received in the City Treasurer's office by the due dates listed below. Postmarks are not accepted. Taxes may also be paid in person at the City Treasurer's office or in the drop box in the City Hall parking lot. Partial payments are accepted; however, interest will continue to be charged on the unpaid balance.

DELINQUENT TAXES

Taxes are collected by the City Treasurer's office until February 28. On March 1, payments must be taken or sent to the Isabella County Treasurer's office, which sends delinquent notices after March 1. Delinquent taxes will continue to accrue interest at a rate that increases by 1% per month for the first year.  If unpaid after one year, the rate increases to 1.5%, retro to the first month plus additional fees.  After two years, the property is foreclosed and sold at a public auction.  For more information contact the Isabella County Treasurer at 989-772-0911.

ESCROW AGENTS

Some mortgage companies and banks require taxes and insurance to be paid to them on a monthly basis. In this case, the escrow agent receives the bill and pays the taxes. The home owner is mailed a copy of the bill. Should the home owner wish to confirm with the escrow agent that the taxes have been paid, the name of the escrow agent will be listed on the tax bill. If the escrow agent is not listed on the bill or taxes are no longer being escrowed, please notify the City Assessor's office.

TAX CALENDAR