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Understanding Your "Personal Property" Tax Bill

  • 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.

    Personal Property valuation does not change if the owner removes some of the property or leaves the city for part of the year. However, any personal property sold during the year must be reported to the City Assessor's office at the time of sale.

  • Personal Property Tax Statement

    The City Assessor's office determines the value of property based on the Personal Property Tax Statement which the owner files annually. By December 31 of each year, a blank Personal Property Tax Statement is mailed to all taxpayers who were billed for personal property taxes in the previous year. The statement requires the owner to list all property by the year it was purchased and is due on February 1. Even if an owner no longer owns property in the city, the form must be filed listing no property. If the form is not filed by February 1, the City Assessor's office will estimate the value of personal property based on the statements filed by other similar businesses.

    Tax bills are sent to the owner of record on July 1 and December 1. If taxes need to be prorated, it is the responsibility of the parties involved to do so. Contact the City Treasurer's office to get an estimate of the taxes that will be billed.

  • Notice of Assessment

    On approximately March 1 of each year, a "Notice of Assessment, Taxable Valuation, and Property Classification" is mailed for each property. The notice includes three values for the property: Assessed Value, State Equalized Value, and Taxable Value.

    Assessed Value is equal to approximately one half of the depreciated true cash value of the property as determined from the Personal Property Tax Statement (or estimated by the Assessor's office if no form is filed).

    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. It is the same as the SEV. The limit on Taxable Value provided for by Proposal A, passed by Michigan voters in 1994, usually does not apply to personal property.

  • 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 รท $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 School District (RESD), Isabella County, 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.

  • 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. 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 on the calendar. 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

    Delinquent taxes will continue to accrue interest at a rate that increases by 1% per month until they are paid. Unpaid taxes can be enforced by small claims court proceeding and/or sale of personal property.