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Tax Collection and Information
Friday, March 19, 2010
       
You are here :   Property Taxes Explained   
UNDERSTANDING PROPERTY TAX RATES

 What is a millage ?

The general property tax funds school districts, townships, villages, cities and counties of the state. The tax rate, or millage, is the number of dollars the property owner must pay for each $1,000 of taxable value.  This rate varies by local unit, but certain statewide constitutional and statutory restrictions exist. 

How is my property tax calculated?

Your property tax is determined by multiplying your total local millage rate by your taxable value.  The Michigan Department of Treasury now has a property tax estimator on its website (http://www.Michigan.gov/treasury). 

Why aren't everyone's summer tax rates the same?

Clinton Township residents are served by five local school districts, thus summer millage rates are not the same throughout the Township.  You can review the various millage rates levied by clicking on the "Tax Rates" link at the top of this page.

UNDERSTANDING PROPOSAL A

On March 15, 1994, the voters of Michigan passed a state constitutional amendment known as Proposal A.  This proposal created a new term called Taxable Value (TV), or the figure against which millage would be multiplied to determine property taxes.  

Proposal A requires that:

  • Assessments (State Equalized Value or SEV) be calculated yearly at 50% of the true cash value, as determined by 1-2 year studies of market sales that occur during a time frame that is outlined by the State Tax Commission. (2009 assessments were based on a single year study of sales occurring between October 1, 2007 thru September 30, 2008) 
  • Taxable Value (TV) for parcels be determined using a methodology mandated by the State legislature, and which can not be changed by any local community.  The calculation formula takes the previous year's taxable value, minus any physical losses to the property, plus any physical additions to the property, multiplied by 5% or the rate of inflation - whichever is less.  Rate of inflation is determined by the state (4.4% for 2009).

Proposal A "caps" the growth in TV in those years when market values (Assessed Values) are increasing faster than inflation. Over the course of many years, Proposal A allows many taxpayers to pay property taxes on significantly less than the market value of their property.  

Proposal A's Relationship to Housing Market Downturns

As long as the TV of a property remains less than the SEV, TV will increase under Proposal A's formula.   If there is a significant gap between the SEV and TV figures for owners, it would take several years of depressed market conditions for the TV to catch up to SEV.  Thus,  a tax increase could occur for many homeowners even in a market downturn. 

Taxable Value Reset Upon Transfer of Property

When property is transferred, the TV is reset or "uncapped" and returned to being the full (SEV) for the following year.  This most often results in a new property owner paying higher taxes than the previous owner, who may have been benefitting from many years of capping.  Potential buyers should always use SEV when estimating a property's tax liability.

 

 
SUMMER PROPERTY TAX INFORMATION

Payment covers the period from July 1st through June 30th of the following year.

Summer Taxes include:

  • State Education – A tax levied by the State of Michigan on all property
  • School Debt – A tax levied by your local school district on all property to pay off debt.
  • School Operating – A tax levied by your local school district on Non-Principle Residence property
  • Macomb Community College – A tax levied on all property.
  • Macomb Intermediate School District – A tax levied on all property.
  • Mount Clemens Public Library – A tax levied on all property within the Mount Clemens School District.
  • County Operating - A tax levied on all property

Interest Fees: After September 14th, unpaid summer taxes incur an automatic 1% interest through the end of September.  An additional 1% per month is charged on the first of each subsequent month through February.  Unpaid summer taxes with interest are added to the winter tax bill.

Summer Tax Deferment is available to senior citizens (62), and those who are paraplegic, quadriplegic, totally and permanently disabled, blind, or an eligible verteran or widow.  Applications can be obtained by going to http://www.michigan.gov and must be submitted to the Township Treasurer's Office by September 15th.  Deferment postpones the summer tax payment deadline to February 28th without interest or penalty.
WINTER PROPERTY TAX INFORMATION

Payment covers the period from December 1st -November 30th of the following calendar year.

Winter taxes include:

  • County Drain Debt - A tax levied on all property.
  • SMART Bus - A tax levied on all property.  (Voted 2006)
  • ZOO Authority - A voted tax levied on all property (Voted 2008-2017)
  • Verterans - A voted tax levied on all property (Voted 2008-2012)
  • Huron Clinton Metro Authority (HCMA) - A tax levied on all property. (PA 1939)
  • Township Operating – A tax levied on all property.
  • Police & Fire S.A.D. – Assessment permitted by Charter and levied annually on all real property.
  • Fire Millage – A voted tax levied on all property. (Voted 2002-2021)
  • Police Building – A voted tax levied on all property. (Voted 1998-2018)
  • Police Operating - A tax levied on all property. (Voted 2006-2027)
  • Clinton-Macomb Public Library – A tax levied on all property except those properties which reside within the Mount Clemens School District. (Voted 1998-perpetual)
  • School Debt & Operating – Clintondale school district levies 50% in summer and 50% in winter.
PROPERTY TAX DEFERMENTS & EXEMPTIONS

Contact the Treasurer's Office (586-286-9313) for the following:

SUMMER TAX DEFERMENT is available to senior citizens (62 ) who meet the income requirements as well as paraplegic, quadriplegic, totally and permanently disabled, blind or eligible service persons, veterans or widows.  Application must be made July 1 through September 14th. 

Contact the Assessing Department (586-286-9468) for the following:

PRINCIPAL RESIDENCE EXEMPTION (P.R.E.) provides the "principal residence" of a taxpayer with an exemption from the local school operating millage, up to 18 mills.  An owner must claim this exemption by filing an affidavit with the township's assessing department on or before May 1.  Taxpayers may only claim one home as their principal residence.

Note: A Notice of Foreclosure presented to the Asesssor results in the removal of the P.R.E. status from the property.

POVERTY EXEMPTION requests can be made by low income resisdents only for the current year, not for previous years.  Residents must own and reside in the home for two consecutive years preceding the application and provide proof of income for all persons living in the residence.  Household gross income must meet the current year's income guidelines set by the Township Board.  Application can be made for the March, July or December Board of Review. 

VETERAN'S HOMESTEAD EXEMPTION from taxation is granted to a soldier or sailor who was discharged under honorable conditions with a service connected disability that requires the VA to provide financial assistance for specially adapted housing.  Veteran must present to the assessor an affidavit, accompanied by a certificate from the U.S. VA showing the facts required and a description of the property.  Application must be filed during the period beginning with the tax day for each year and ending at the time of the final adjournment of the local board of review.

RELIEF DURING ACTIVE MILITARY SERVICE can be granted to soldiers and sailors who own property.  Application can be filed before or during the period of service.  Under the Soldiers & SailorsRelief Act, property can't be sold to pay delinquent property taxes during the serviceperson's tour of active duty.  If taxes are delinquent during the tour of duty, an interest of 6% per year will be charged rather than at the higher rates provided by law. 

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