The passage of Proposal A in March of 1994 drastically changed the property assessment and taxation system.  Some of the charges are hard to understand.

One such change is the “assessment cap”.  The language in Proposal A stated that, starting in 1995, the taxable value can be increased only by the amount of the consumer price index (CPI) or 5% , whichever is less.  However, other laws still require that the State Equalized Value (SEV) is to be 50% of the current market value.

As a result, there will be three different “values” recorded for each property: the State Equalized Value; the Capped Value; and the Taxable Value.  The property taxes are calculated on the Taxable Value.

Starting in 1995, the Assessor will still be required to estimate the market value of every property and record 50% of that as the State Equalized Value.  In addition, the Assessor will also be required to multiply individually each  assessment by the CPI to calculate each individual Capped Value.  The lesser of the two will be the new Taxable value for that property. 

Structural items not previously assessed, for example new construction, are to be added to the new values. 

With this new system, in most cases, a property’s taxable value will not be increased more that the previous year’s taxable value times the CPI.  This “capping” process will continue annually until the ownership is transferred.  The “uncapping” will take place in the year after the transfer of ownership.

When a transfer of ownership occurs, the next Taxable Value will be based on the State Equalized Value that had been calculated annually.  New legislation states that the actual sale price must not be the sole basis of the new SEV for that property.

Why Do Assessments Go Up When A Property Hasn’t Changed?

Since assessments must be set by market value, changing real estate values in the community will be reflected in the assessments. Market Value is a product of the prices paid for property.  As prices increase/decrease, so does the market value.

All properties do not change in value to the same degree.  Many factors influence values.  Those properties with water or scenic views for example, may well increase more rapidly than others. 

Determine your tax bill.

Your property tax bill is the end calculation of multiplying your Taxable Value by the local millage rate.  The Assessor simply reports the current values of your property.  Your bill is based on the various millages voted on in your community.  (Rates)

What are your rights and responsibilities?

 If your opinion of the value of your property differs from Assessor’s, of course go to the office and discuss the matter.  The staff will be glad to answer your questions and explain how to appeal if you cannot come to an agreement.  You can help by providing accurate information. 

 As a taxpaying citizen it is your right to appeal your value to the Board of Review.  According to the Charter of the City of Wyandotte, this review process is to take place in February.  Just previous to the Board of Review you will receive a Notice of Assessment of Values.  You should look this over to confirm your property identification number, your classification of property and percentage of Principle Residence Exemption.  You should also calculate your Taxable Value, verifying the increase by the Consumer Price Index.  If you notice any changes that you are concerned about please notify the Assessor’s Office immediately.

State Equalized Value (SEV)
Equals . . .      Half of the Appraised Market Value

Capped Value
Equals . . .      Last year’s Taxable Value increased by the  amount of the Consumer Price Index, CPI, with a maximum of 5%, plus construction changes

Taxable Value
Equals . . .       The lesser of the State Equalized and Capped Values.  The Taxable Value will be  used for the calculation of property taxes