Glossary of Terms
Capped Value (CAP): Last year's taxable value, less losses, increased by the amount of the Consumer Price Index (CPI) or 5 percent, whichever is lower, plus the value of new construction.
Consumer Price Index (CPI): Determined by the US Bureau of Labor Statistics.
Assessed Value (AV): Half of the True Cash Value
State Equalized Value (SEV): County and State Equalization studies are performed after the local municipalities have finalized their assessment rolls which results in a factor applied to the assessed values. Historically, for Auburn Hills, this factor has been 1.000 which means that the SEV and the Assessed Values have been the same.
Taxable Value (TV): The lesser of the SEV and the CAPPED Value. Property taxes are determined by multiplying the taxable value by the millage rate.
CLICK the link below to connect with Oakland County Equalization's website that contains more Frequently Asked Questions. https://www.oakgov.com/mgtbud/equal/FAQ/Pages/Personal-Property-Assessments-and-Taxes.aspx
Where can I review my property record?
The Assessor's office is open during regular city business hours (M-F, 8am - 5 pm) for reviewing assessment records, filing forms such as Principal Residence Exemptions, Property Transfer Affidavits, Hardship Applications, etc.., and answering questions. Property record information is also available from our website via our Property Data Search application. CLICK HERE
When will my property be evaluated?
The taxable status of real and personal property for a tax year shall be determined as of each December 31 of the immediately preceding year, which is considered tax day. An assessing officer is not restricted to any particular period in the preparation of the assessment roll but may survey, examine, or review properties at any time prior to or after the tax day.
Why do assessed values change from year to year?
When market value changes, naturally so does assessed value. For instance, if you were to increase the total market value of a parcel of property by building a garage, the assessed value would increase proportionately. Similarly, should a property value be decreased because of a fire or other catastrophe, the assessed value would decrease to show the downward effect of the damage on the market value of the property. The economy of the entire community affects assessed value. For example, over the years more property owners have rehabilitated or invested in new construction in and around the City of Auburn Hills; and all property values within the City have increased. This can easily be seen by looking at the asking prices of properties that are currently for sale on the open market and by finding out what properties have actually sold for within the City of Auburn Hills. The Assessor has not created this value, he simply has the legal responsibility to discover it as it exists and appraise property accordingly. People make value by their transactions in the market place.
How can my Taxable Value go up when my Assessed Value stays the same or even goes down?
The City of Auburn Hills knows this is an area of great concern to our taxpayers. Assessments are a function of property value and property taxes are calculated on your taxable value. In 1994 Proposal A required property taxes be calculated based on the Taxable Value not the Assessed Value. By law, Taxable Values are annually increased or decreased each year by the CPI (Consumer Price Index) or 5% whichever is lower; unless there are physical changes to the property or a transfer of ownership occurred. The 2017 Inflation Rate Multiplier (IRM) is 1.009%
During the 1990s and early 2000s, property values greatly exceeded the annual CPI. This has created a gap between the Assessed and Taxable Values. Property taxes will continue to rise until the taxable value is equal to the Assessed Value. Therefore, it is possible for your assessment to go down, yet a Taxable Value will increase until the assessment and taxable value are equal. Proposal A does not permit the taxable value to ever be higher than the assessed value.
CLICK HERE to obtain a copy of Oakland County's Proposal A pamphlet for more information and examples.
If I repair my home will my assessment go up?
Most homes are assumed to be maintained and normal repairs usually will not increase the assessment. If you are fixing up a home that has not been maintained or needs many repairs, you may want to file a "Request for Non consideration of the True Cash Value of Normal Repair, Replacement and Maintenance Expenditures" form. Form number 865, formerly L-4293. Normal repairs and maintenance such as siding, windows, porches, roof, heating systems, painting and interior remodeling will not be added to your assessed value until you sell the property to someone else. Expenses which are part of a structural addition do no qualify. Forms are available by calling or stopping by the assessor's office.
What is the deadline for filing a Principal Residence Exemption Affidavit?
The filing deadline is June 1 of the year the exemption is being claimed. Click HERE to access the proper form.
I moved to a different home before the June1 filing deadline. May I claim my new home?
Yes. If you buy a new home and move into it before the May 1 filing deadline, you may claim an exemption on the new home. New residences may be claimed by filing a PRINCIPAL RESIDENCE EXEMPTION AFFIDAVIT (FORM 2368) that is typically available at closing. If your agent does not provide you with this form, you can either pick one up at the Assessor's office at city hall or download it from the link above.
I moved into my Auburn HIlls home after June 1st, but by November 1st. Do I qualify for a Principal Residence Exemption?
PA 114 of 2012 allows those who initially own and occupy their home from June 2 through November 1 to claim a principal residence exemption for the winter taxes only for that year, as long as their Principal Residence Exemption Affidavit form is timely filed. Note: If the school operating taxes for your school district are levied on the summer tax bill only, this exemption will not benefit you until the following year.
Can I, as closing agent, be held liable to a buyer or seller if the buyer is not granted a homestead exemption because I did not provide either an update or an affidavit form, or I did not submit their form on time?
Closing agents are required to provide either an affidavit or update form at closing. However, PA 415 of 1994 does not provide a legal course of action against the closing agent, by the buyer or seller, if the agent fails to provide a homestead exemption form or fails to file the form with the local tax collecting unit.
When I claim an exemption on my new residence, what happens to the exemption on the residence I sold?
The exemption on your old home remains in effect until December 31 of the year your home is sold. If you move to your new residence before your first home is sold, the exemption expires on December 31 of the year you move out. You must rescind the homestead exemption within 90 days of the date you no longer own or occupy the property as your principal residence. You may rescind your exemption on the REQUEST TO RESCIND/WITHDRAW HOMESTEAD EXEMPTION FORM (Form 2602) at closing. If your agent did not provide you with Form 2602, stop by the Assessor's office at city hall or download it from the link above.
I am moving into a new home and converting my current home to a rental property in November. Do I have to rescind the exemption on my current home?
Yes, within 90 days of moving. The exemption will remain in place until December 31 of the year the use is changed from your principal residence to a rental property. Click HERE to access the proper form.
I just moved into a new home and have my prior home up for sale. Can I keep the PRE on my prior home?
Maybe. Click HERE for more information.
What happens when a lender has foreclosed on a mortgage and the home is now vacant?
The lender must rescind the homestead exemption using the REQUEST TO RESCIND/WITHDRAW HOMESTEAD EXEMPTION FORM (Form 2602). If you need a Form 2602 you can pick on up at the Assessor’s office at city hall or download it from the link above.
What determines principal residence?
The test the Michigan Department of Treasury uses to determine principal residence includes such things as where you are registered to vote, the address on your driver's license, where your children attend school, and the address from which you file your income tax returns.
I own two homes in Michigan. For which home do I claim the exemption?
Claim the exemption for the home you occupy as your principal residence.
I have a home in Michigan and in another state. May I claim an exemption on my Michigan home?
You must be a Michigan resident to claim this exemption. You may claim your Michigan home only if you own it and occupy it as your principal residence. You may not have more than one principal residence.
May renters file for this exemption?
No. You must own your principal residence to claim an exemption for it.
My children own my home, but I hold a life estate. May I claim the exemption?
Yes. Complete the affidavit using your name, address, social security number, and signature. Your children should not sign the affidavit.
I am leasing my home with an option to buy. May I claim my home?
No. Leasing with an option to buy is considered a rental arrangement, so the home is ineligible. When you exercise the option to buy, you may claim an exemption.
I live in a nursing home but still maintain a home that I eventually plan on returning to. May I claim an exemption on the home I own?
Yes, unless the home is rented to another person.
I own the lot adjoining and contiguous to my home, and it has a different property identification number than the parcel on which my homestead is located. May I also claim an exemption on this property?
You may claim an exemption on this property as long as the property claimed is adjoining or contiguous to your home. A road does not break contiguity. File an affidavit for each parcel.
I live in part of my home and operate a business in another part. May I claim an exemption?
Yes, but only on the portion of the property that is your home. You may claim the partial exemption even if the property is classified as commercial.
I rent a room in my home to a boarder. May I still claim an exemption?
Yes. If more than 50 percent of your home is used as your principal residence, you may claim an exemption for your entire home. If you use 50 percent or less of your home as a principal residence, a percentage of your home that you occupy will be used.
I own a duplex and I live in one of the units. My father lives in the other unit but does not pay rent. May I claim an exemption on both units?
You may claim an exemption only on the unit you occupy as your principal residence even if there is an adjoining entrance between the units.
Where can I find information on a Conditional Rescission of Principal Residence Exemption?
By clicking HERE.
How do I file for a transfer of ownership for a property?
P.A. 415 defines transfers and requires that whenever a property transfers ownership, a Property Transfer Affidavit must be filed by the new owner with the assessing officer (even if you are not recording a deed) within 45 days of the transfer. This affidavit must disclose the following:
- The parties to the transfer
- The date of the transfer
- The actual consideration for the transfer (ie: dollar amount), and
- The property identification number or legal description. The property Transfer Affidavit must be filed within 45 days of transfer.
- If a Property Transfer Affidavit for residential property is not filed timely, a penalty of $5/day (maximum $200) applies
- If a Property Transfer Affidavit for commercial or industrial properties is not filed timely, the following penalties apply:
- If the sale price of the property transferred is $100,000,000.00 or less, $20.00 per day for each separate failure beginning after the 45 days have elapsed, up to a maximum of $1,000.00.
- If the sale price of the property transferred is more than $100,000,000.00, $20,000.00 after the 45 days have elapsed.
I closed my business this year (or moved it out of Auburn Hills), and still received a tax bill for my personal property. Do I have to pay it? Why?
Yes, you are still responsible for the payment. The status of personal property on December 31st will determine what is assessed and where it is assessed in the following year. According to MCL 211.17, any changes in location or ownership of the personal property after tax day will not affect the assessment. CLICK HERE to access Oakland County's publication, "Personal Property Tax Reform", for further information.