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1. I just bought my property, why isn’t my Assessed Value exactly half of the sales price?

Assessments are 50% of the usual selling price of the property. The Michigan Legislature and the Michigan Supreme Court have clearly stated that the actual sales price of a property is not the only controlling factor in determining the True Cash Value calculated by the assessing officer. The local assessor must analyze the sales in each neighborhood to arrive at a uniform and equitable assessment for all properties.

This is very similar to the process that is required when you buy a property and want the bank to lend you the money. The bank requires an appraisal to determine the usual selling price and verify that your purchase price is reasonable.

2. Are financial institution sales used in the sales study?

Normally, sales that involve mortgage foreclosures and sales from relocation companies (Distressed Sales) are not considered typical sales and are not used to determine the value of property in the assessment process. The State Tax Commission has allowed the use of these sales in this declining market, but only under strict conditions. In part, they must be in the same physical condition as when they were assessed (normal maintenance). The City of Taylor has researched these distressed sales during this time period and has used the ones that fall within the Commission’s requirements.

Current real estate listings are not used in determining true cash value of properties.