DEPARTMENT MISSION STATEMENT
Provide the fairest possible state equalized valuation and taxable valuation to each individual taxable real and personal property within the City of Holland, which collectively serve as the tax base for the City, portions of various other taxing jurisdictions with boundaries totally or partially within the City; provide efficient management for a comprehensive records system that encompasses several different classes of property; and provide an annual assessment roll against which multiple tax millage rates are applied.
This office takes into consideration various factors to establish the True Cash (Fair Market) Value of Real and Personal Property, including:
- Description of the property and its improvements
- Lot dimensions
- Age of home and/or other buildings
- Land value
- Building square footage
- Value-enhancing amenities
What is Assessed Value?
The Assessed Value shall not exceed 50% of the True Cash Value of the property. The Assessor’s Office uses mass appraisal techniques to determine the true cash value of each property every year and sets the Assessed Value at 50% of the True Cash Value. The True Cash Value of a property is synonymous with market value.
What is Capped Value?
Capped Value is a calculation of the previous year’s Taxable Value multiplied by the Inflation Rate Multiplier and adjusted for any physical changes in the property. (The inflation rate multiplier is based on a two year average of the Consumer Price Index CPI). The Inflation Rate Multiplier for 2014 is 1.016.
What is Taxable Value?
The Taxable Value is determined by the lower of the Assessed Value or the Capped Value. Properties that transferred ownership in 2013 will have the Taxable Value set to the Assessed Value for the 2014 tax year.
Taxable Value is the basis of the property tax in Michigan and is multiplied by the millage rate to determine the tax amount each year.
What is State Equalized Value?
State Equalized Value (SEV) is the final Assessed Value after the County and State have completed their equalization processes and have certified the Assessed and Taxable Values. Typically, the SEV is the same as the Assessed Value.