Assessing Real Property
The Assessing Department is responsible for the valuation of all residential, commercial, industrial, and personal property in the City of Southfield and answers inquiries from current residents, prospective home-buyers, and all members of the property purchasing and valuation process. Equitable assessments of properties start with a canvass, or site visit, to inspect the elements of construction for any site improvements. Properties are documented and sketched on a record card and then compared to similar properties in their neighborhood using the three approaches to value to determine fair market value.
Under the State of Michigan Constitution, all property must be assessed at 50% of its fair market value. Fair market value or true cash value is the result of the behaviors of informed buyers and sellers in the market. The Assessor studies the market and collects information about properties to estimate true cash value. Accordingly, changing real estate value in the community will be reflected in the assessments. The most obvious reason a property’s value can change is when the property experiences a qualifying change. Qualifying physical changes, such as additions or demolitions, are reflected in the assessments.
Even though all properties have an assessed value, which is 50% of fair market value, as a result of the passage of Proposal A in 1994, property taxes are based on taxable value, which is limited to an increase of the rate of inflation or 5%, whichever is less. However, the taxable value can be affected by new construction (new & additions) and/or demolitions (loss & losses) made to a property. The limit or cap on increases in taxable value remains in effect each year, except in the year after the property’s ownership is transferred. In that case, the taxable value is "uncapped" to equal the assessed value.
Follow this link to learn more about taxable value uncapping and the calculation of property taxes.
Appealing an Assessment
In pursuance of the Assessing Department’s goal of producing the fairest possible assessment roll each year, assessment notices are sent to property owners once a year in February. Following the notice of assessment, there is an opportunity to correct information and proposed values with the Assessor or to appeal tentative assessments for the current year to the March Board of Review. The Board of Review is a three-member panel of Southfield residents who hear appeals and can make corrections to the assessment roll by increasing or decreasing any improper assessment.
Follow this link to learn more about appealing your assessment with the Board of Review.
Assessing Business Personal Property
The Assessing Department performs an annual personal property canvass of all commercial and industrial property in the city and discovers new, existing, and relocated or "gone" businesses for the accuracy of the personal property assessment roll.
Personal property, e.g., furniture, fixtures, equipment, and machinery, situated in Southfield and used in the operation of a business must be reported annually by the owner on the Personal Property form, which is mailed by the Assessing Department annually no later than January 10th. The Personal Property statement is due by Feb. 20th each year. Small businesses owning personal property with a true cash value less than $180,000 qualify to file the Small Business Taxpayer Exemption Claim which is also due by February 20th, and once filed, is granted for all subsequent years the small business operates within the city and does not exceed the $180,000 true cash value limit.
If the form is not filed timely, an estimated assessment will be made, and the right to appeal at the local or state level or file a correction with the State Tax Commission will be eliminated.
FAQs
Frequently asked questions regarding the above topics may be answered here on the city website's FAQ page or can be more thoroughly researched in the Related Links section on the right margin of the Assessing Department's home page. The most relevant site located in the Related Links section is the State Tax Commission
