Iron River Township|
102 McNutt Road
Iron River, MI. 49935
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Contact the Iron River Township Assessor's office at 906.265.3403 or his cell 231-350-0463 for available on site schedule. You can also email him at the address below.
FAQs on Personal and Real Estate Property Taxes
The Office of the Assessor is responsible for assessing of real and personal property in the township. This office is also responsible for Property Transfer Affidavits as well as Principle Residence Exemption Affidavits.
The assessing task requires the maintenance of records on each property in the township. The types of data maintained on assessment cards are building sketches & pictures, legal descriptions, square footage and year built.
By contacting the Mr. Kim Schmidt, the assessor, you can Request a copy of your Property Record Card.
You can find other forms at the following links:
How are taxes calculated?
General property taxes are charges to taxpayers who are not otherwise exempt from the tax for the costs of government activities that benefit the general public or for payments of indebtedness that finance public capital improvements, such as a new jail or an addition to a school.
How is Taxable Value Calculated?
Restated 2004 Taxable Value for a parcel of property is the LOWER of:
The following example shows the calculation of Taxable Value for a property, which had no physical changes during 2003 (meaning that the property's land size was still the same and the buildings on the property were neither destroyed in whole or in part, nor improved, etc.). EXAMPLE: for a property whose market value increased by 2% for 2004 and there was not a "transfer of ownership" in 2003.
Given: 2003 SEV = 50,000
2003 Taxable Value = 49,000 2004 SEV = 50,000 + 2% = 51,000 2004 Taxable Value is the LOWER of:
The 2004 Taxable Value is $50,127 (since this is lower than the 2004 SEV of $51,000.)
How to Calculate Your Property Tax
The taxable value of your property is determined via a formula. This formula is calculated by the assessor and is reported to you on your Notice of Assessment, Taxable Valuation, and Property Classification document mailed annually in February. The millage rate is the total number of mills being levied. Millage rates are calculated in the spring for the summer collection and in the fall for the winter collection. Millage rates vary from year to year. Here is an example for a homeowner's principal residence in the Elk Rapids School District for the year 2004: If your 2004 taxable value is $60,000 and the 2004 millage rate is 11.5429 mills, your 2004 total property tax can be estimated as follows:
Keep in mind that the method shown here will result in an estimate of your total tax for the entire year. The same method can be used to estimate your summer and winter bill separately. Just insert the summer millage rate to estimate your summer tax and insert the winter millage rate to estimate your winter tax. This figure is then multiplied by 1.01 (1 percent) for the property tax administration fee, which can only be used for assessing and property tax collection purposes.
Michigan law gives townships the authority to assess property.
The Michigan Constitution and property tax law requires that all property be uniformly assessed at no more than 50% of true cash value, which is the cash price a property could bring in a competitive and open market. Proposal A, the March 15, 1994 amendment to the Michigan Constitution did not eliminate the requirement that property be uniformly assessed. The assessing officer is responsible for determining this assessed value.
There are two types of property subject to assessment:
Personal Property - furniture and fixtures, machines and equipment belonging to a business, certain public utilities, oil wells, structures on leased properties, and other similar tangible property.
The General Property Tax Act [MCL211.1, etseq] requires real and personal property to be assessed annually in each township and city by a certified officer. The assessment roll must include the name and address of every person subject to taxation in the municipality. The roll must also contain a full description of real property, including the number of acres contained in it.
Who is responsible for assessing property at the township level?
The law states that the assessor is subordinate to the supervisor, even if the supervisor is not a certified assessor. As chief assessing officer, the non-certified supervisor is still responsible for the assessment process.
How should an assessor appraise property?
Market approach-This is used for the valuation of vacant land and to defend assessments in any appeal proceeding. Sometimes called the direct comparison method, this approach compares a property with similar properties that have sold recently to estimate the value of the property. The selling prices of the comparable properties are adjusted by judging their advantages and disadvantages measured against features of the subject property. Adjustments are usually made for comparisons in physical features such as size, quality of construction and condition, location, and time of sale. The value of land is most frequently estimated by the market approach. Soil type, zoning, public improvements, shape, size of parcel, topography and cover are factors considered when valuing land. The advantages of market approach are that it reflects the actions of buyers and sellers of property, and it is the method most easily understood by people who are not property valuation experts and by the courts and other review bodies. It is more useful as a defense of assessments than as a technique in the mass appraisal of property.
Income approach- The income approach can be used to appraise commercial property, but is primarily used in Michigan Tax Tribunal cases. Often referred to as the capitalization of income approach, it provides an estimate of value by analyzing the income producing capacity of investment property. It is based on the premise that the value of investment property is directly related to the income it is expected to produce over its economic life. Investment property is worth the present value of income that is to be received in the future. While the income approach is used primarily to defend assessments, it is also used in some assessing units to establish assessed values for income-producing properties. This approach is more difficult to use than the other approaches because the appraiser needs extensive training regarding real estate investments, income and expense analysis, and various income appraisal techniques. It is important that assessors have an understanding of the basic concepts of the income approach because they will encounter such appraisals prepared for owners of investment property during the appeals process.
To be eligible for an exemption, a person must own and occupy as a principal residence the property for which the exemption is requested, and must meet the federal poverty income standards. The exemption must be applied for each year by filing a claim with the supervisor or board of review on a form provided by the township. The application must be filed between January 1 and the last day of the board of review. (See the statute for more complete eligibility requirements.)
Every township board must establish hardship exemption guidelines, including specilic income and asset levels for the applicant, and total household income and assets. Based on the recommendation of the supervisor, the board of review may grant an exemption up to 100 percent of the property taxes on the principal residence property.
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