GRAND RAPIDS, Mich. — Generally, the taxable value of a home fluctuates minimally year to year with the rate of inflation, but there are a couple scenarios where that is not the case.
If construction is done on a home —like the addition of a garage— the taxable value would then increase to reflect that. But, a homeowner can appeal the facts about their home, if the city has them listed incorrectly. This could then decrease the taxable value.
To review the city's record of your home, request online to view the property record card.
"It's important that people fill us in with the information we don't have," said Paula Jastifer, the city assessor for Grand Rapids.
If a homeowner purchased their home during the prior year, the taxable value is then uncapped and rises to match the assessed value, which represents 50 percent of the true cash value.
"Assessed values have been increasing at 10 percent over the past few years for residential," Jastifer said. "The inflation area increase for the taxable value has been about 2 percent for the last few years."
So, the gap between an assessed value and a taxable value is typically significant given the growth rate of Grand Rapids. When the taxable value is increased to match the assessed value, it can come as a shock, especially to first time home buyers.
"We see a lot of clients who bought a house from somebody who may have lived there for 30 years and see quite a drastic tax change," said Wyatt Martin, a realtor with Greenridge Realty.
Often times, this is where the appeals process comes into play. This gives homeowners the chance to provide the assessor's office with details on the condition of their home.
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"Pictures are very helpful. If they are having any structural problems with their property, it's good to know about those," Jastifer said. "Anything impacting the value of the property."
The taxable value of a home cannot be higher than the assessed value, so if someone, who purchased their home in the year prior, successfully appeals down their assessed value — it would then also bring down their taxes.
Very few appeals are actually filed by property owners. Of the roughly 61,000 parcels in Grand Rapids, appeals were filed for only 178 in 2019, according to the assessor's office.
Martin says it's worth appealing an increased assessed value even if it's not directly impacting a homeowner's taxes.
"You don't want an assessed value much higher than your taxable value because it will hurt on resale," Martin said.
A high assessed value on a home can make it less marketable to buyers who would then inherit the high taxes.
"So, it's in your benefit to keep your assessed value as low as possible as a homeowner," Martin said.
The deadline to appeal the city's assessment of your home is February 14, the appeal form has to be submitted in paper form to the assessor's office by 5 p.m.
The assessor's office will then review the additional information and send their decisions out in letter form at the end of the month.
If homeowners are not satisfied with the office's decision, they can appeal again to the Appeals Board of Review starting March 3. The board is made up of three civilians, chosen by the city commission and the mayor.
The homeowner can appeal to the Michigan Tax Tribunal, if they don't agree with the board's decision. It is free to file an appeal with the state.
To download the appeal form, click here.
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