Property taxes are calculated by multiplying your property’s taxable value by the millage rate. Millages are divided between the summer and winter tax bills. Please contact treasurer Misti Lindholm for the millage rate.

Assessed Value Determinations
The yearly determination of a property’s assessed value is done by the local township assessor. The Assessor is required by State statute to assess all real and personal property in the township at fifty (50) percent of the current market value as of December 31st of each year.

Market Value is defined as “the most likely price that a property would sell for in an arm’s length transaction with no undue influence suffered by either the buyer or seller.” An individual selling price does not establish the assessed value of any property, rather an analysis of all sales is done to establish uniform values for all properties in Heath Township. There is no cap or limit on assessed value. Various factors are taken into
consideration when establishing the assessment, including, but not limited to location, size and use, age, style, surrounding properties, land, and improvement values.

Assessors are required to calculate land values and economic condition factors (ECF) each year for all classes of property. Agriculture, Commercial, and Industrial classes use Allegan County appraisals to assist in developing land and ECFs because there are usually not enough sales in these classes to use a sales study. Due to the number of sales of Residential properties, sales studies can be used to calculate land and
ECFs. Land and ECF calculations are applied using a mass appraisal technique – meaning all properties within the class or “neighborhood*” use the same land and ECF values. Land and ECF calculations may be viewed using BS&A. *The Residential class is divided into neighborhoods so that sales of similar properties may be compared.

Taxable Value
With the advent of Proposal A (P.A. 415 of 1994), taxable value determines the amount of tax you pay. (see FAQ regarding Proposal A). If a transfer (sale to new owner) did not occur in the preceding year, taxable value is “capped” and increases or decreases to taxable value are based on the consumer price index or 5%, whichever is lower. 2023 and 2024 were the first two years the 5% was used to limit the increase of taxable value.

Additionally, taxable value may not exceed assessed value. The year following a sale or Transfer of Ownership of a property, the property’s taxable value “cap” is removed, and the taxable value is adjusted to that year’s state equalized value. This means that the taxable value and the state equalized value will be the same for the year following a transfer of ownership. A common misconception regarding “uncapping” is that the assessor uses 50% of the sale price as the new taxable value and state equalized value. This is certainly NOT the case.

To calculate total tax bill for the year = (taxable value x millage rate) / 1000

A millage rate is the rate at which property taxes are levied on property. Property taxes are computed by multiplying the taxable value of the property by the number of mills levied. One mill is equal to $1 in property tax levied per $1,000 of a property’s taxable value. Each governing body that levies property taxes sets its own millage rate annually. Usually, a township charter or a vote of the electorate has determined the maximum number of mills each governing body can levy.

Formula to calculate total tax bill for the year: (taxable value x millage rate) / 1000 = taxes owed

Each February you will receive a form titled “THIS IS NOT A TAX BILL Notice of Assessment, Taxable Valuation, and Property Classification” The form notifies you of changes to your property. It is good to review the form for accuracy.

Owner’s Name & Address identifies the mailing address we have on record in the township. If it is not correct, please let us know promptly!

Parcel Identification is the specific number that identifies the parcel the form is describing. Property Address is the address of the parcel identified. (This may be different from the mailing address.)

Principal Residence Exemption This box shows if an exemption from school operating millage is applicable. The exemption is expressed as a percentage; 100% means no school operating millage is levied on the property.

Legal Description is a description using metes and bounds or deed calls. This is another way of accurately identifying the parcel.

Classification
Both last years and current year’s classification are noted. “IMPROVED” means there are building structures on the property. This is not an indication that new construction occurred.

1. Taxable Value (TV) is the figure used to calculate your property taxes. TV increases or decreases from year to year by the rate of inflation or 5%, whichever is lower. Transfers of ownership, which “uncap” the TV, and improvements to the property can increase the TV more than the rate of inflation. TV cannot exceed the SEV for the property.
2. Assessed Value (AV) The assessor is statutorily required to set an AV equal to 50% of the market value of your property.
3. Tentative Equalization Factor 1.000 As long as the total assessment of each class falls between 49% – 50%, the whole class receives a factor of 1.000. If the total value of the class is outside this range, a factor will be applied to the whole class.
4. State Equalized Value (SEV) is the AV adjusted following county and state equalization. The County Board of Commissioners and the Michigan State Tax Commission must review assessments by property classification and adjust (i.e., equalize) them if they are above or below the statutory 50% level of assessment. An adjustment is called a factor. A factor of 1.000 means the assessments are within the statutory range. This is why SEV is often the same as AV. AV x Equalization Factor = SEV
5. Transfer of ownership This line indicates whether the property transferred in the prior year, and if so, is subject to taxable value uncapping.
6. Assessor Change Reason(s) identifies what caused a change in value to the property.

Inflation Rate Multiplier is the multiplier that will adjust last year’s taxable value to the current year. (Transfers, new construction, demolition, etc. will cause additional changes to taxable value.)

Name and Contact information of the Assessor If you have a question about your assessment notice, please contact the assessor to determine if an error has been made.

March Board of Review Appeal Information gives you the dates and times the board will be available to consider an appeal to your property’s assessment. Please use the phone number to schedule an appointment.

The Board of Review is made up of residents of Heath Township. Their job is to oversee the work of the assessor and hear appeals from property owners who disagree with their property assessment. The March Board of Review hears public appeals for two days in March and meets in July and December to correct qualified errors and other statutory duties.

Property owners have the privilege to protest their property’s assessment, classification, qualified ag exemption, or error in calculation of taxable value in March. The dates the MBOR meets are listed on the Assessment Change Notice.

If you are interested in learning more about what Proposal A is and its impact on property tax law in Michigan, please read ‘School Finance Reform in Michigan Proposal A: Retrospective‘ provided by the State of Michigan.

A Principal Residence Exemption (PRE) exempts the home you own and occupy from the tax levied by a local school district for school operating purposes up to 18 mills. (Section 211.7cc and 211.7dd of the General Property Tax Act, Public Act 206 of 1893, as amended, addresses PRE claims.) 

To qualify for a principal residence exemption on a dwelling, MCL 211.7cc requires that the property be: (1) owned by a qualified owner as defined by MCL 211.7dd(a); (2) occupied as a principal residence by that owner of the property; (3) none of the disqualifying factors listed in MCL 211.7cc(3) apply; and (4) claimed by the owner of the property by filing an affidavit with the local tax collecting unit in which the property is located. To claim a PRE, the property owner must submit a Principal Residence Exemption (PRE) Affidavit, Form 2368, to the assessor for the city or township in which the property is located. Homeowners may only claim a PRE on one home.

There are many variables in determining eligibility for the exemption. The Principal Residence Exemption (PRE) Guidelines book provides answers to a number of frequently asked questions.

When a person no longer owns or occupies the property as a principal residence, he or she must file a Request to Rescind Homeowner’s Principal Residence Exemption (PRE), Form 2602, with the assessor for the city or township in which the property is located to remove the PRE. The PRE will be removed from the local property tax roll by the assessor beginning with the next tax year. Failure to rescind a PRE may result in additional taxes, interest and penalties. Under certain circumstances a person may qualify for a conditional rescission which allows an owner to receive a PRE on his or her current Michigan property and on previously exempted property simultaneously for up to three years. To initially qualify
for a conditional rescission, the owner must submit an owner’s Conditional Rescission of Principal Residence Exemption (PRE), Form 4640  to the assessor for the city or township in which the property is located on or before June 1 or November 1 of the first year of the claim.

As a result of the uncapping provision in “Proposal A,” the Legislature enacted mandatory disclosure of all transfers of ownership in Michigan. The Property Transfer Affidavit (L-4260) is used for this requirement. The new owner of the property is required to file this form with the Heath Township Assessor within 45 days of the transfer of ownership. The form verifies the owner’s mailing address as well as lists exemptions from uncapping taxable value.

If you are experiencing hardship the poverty exemption is available to exempt the homeowner from property taxes (pending Board of Review evaluation of submitted documents). To be eligible for the exemption the applicant:

• Must be the owner of and occupy as principal residence, the property for which the exemption is requested.
• Annual household income shall not exceed the amount set by the Federal poverty guidelines. Total assets, essential household goods, and motor vehicles should not exceed the annually updated
• Federal poverty guidelines. Please refer to guidelines for additional information.

To apply for the exemption the applicant must submit all the following:

• Poverty Exemption Application
• Submit copies of Federal and State income tax returns for all persons residing in the principal residence, including property tax credit returns (if any). An affidavit is required to be filed for all persons residing in the residence who were not required to file Federal or State income tax returns.
• Provide a valid driver’s license.
• Provide a deed, land contract, or other evidence of ownership.
• Provide evidence of other assets including investments, real property, and retirement accounts.

The Disabled Veteran Exemption (MCL 211.7b) is available to disabled veterans who use and own real property in Heath Township that have been honorably discharged from the armed forces and are one of the following:

• Have been determined by the United States Department of Veteran Affairs to be permanently and totally disabled at the 100% rate.
• Have a certificate from the United States Veterans’ Administration certifying to be receiving or has received pecuniary assistance due to disability for specially adapted housing.
• Is rated by the United States Department of Veteran Affairs to be individually unemployable.

To claim the exemption please fill out the Disabled Veterans Exemption Affidavit and include a copy of your letter from the Veteran Affairs Office which you received in November/December. The exemption may be claimed anytime during the current year, however, to avoid receiving a summer or winter tax bill, it is best to file the affidavit early in the year.

Unremarried spouses of veterans may continue to receive the exemption after the death of the veteran. Please fill out the Disabled Veteran Exemption Affidavit along with a copy of the last letter your spouse received from the Veteran Affairs Office.

Welcome business owners!
Personal property is tangible property such as office furniture and equipment which can be moved to another location. (Real property is physical structures built onto the land which cannot be moved.) Personal property used for commercial, industrial, and utility purposes is subject to taxation in Michigan. All forms are due February 20. Click Personal Property FAQ (link to https://www.michigan.gov/treasury/local/stc/ppr) for more information.

Personal Property Exemptions Over the past 10 years, the State of Michigan has created several exemptions for businesses. To determine eligibility, it is necessary to fill out Personal Property Statement Form 632. Near the bottom of page 1 on the form is a line for “TRUE CASH VALUE” (TCV). Use that value to determine your next step.

True Cash Value under $80,000 When the TCV of all personal property within the Heath Township is less than $80,000 you are eligible for an exemption from personal property tax. For your first time submission of personal property forms, include Personal Property Statement Form 632 and the Small Business Property Exemption Form 5076. As long as your personal property’s TCV remains under $80,000 you do
not need to file again; the exemption remains in place.

True Cash Value between $80,000 and $180,000 If the TCV of all personal property within Heath Township falls in this range, you are also entitled to exemption from property tax. However, you must
file the Personal Property Statement Form 632 and Small Business Property Exemption Form 5076 every year. Failure to submit both forms will disqualify you from the exemption.

Eligible Manufacturing Personal Property (EMPP)
This exemption is for industrial businesses. Rather than pay personal property taxes to Heath Township, businesses pay tax at a reduced rate through the Essential Services Agreement. Personal property must be located on occupied real property and be predominantly used in industrial processing or direct integrated support. Please file Eligible Manufacturing Personal Property Form 5278 with Heath Township. Additional information can be found on the State Tax Commission’s website.

Important Note: If your business has closed or moved, please inform us, so we can update or close your personal property account. If you’ve benefited from an exemption, you must file a rescind form. To rescind the Small Business Exemption file Small Business Rescind Form 5618 with Heath Township. If you are rescinding your EMPP exemption, please file Rescind Eligible Manufacturing Exemption Form 5277 with Heath Township.