Lynne Houston, Assessor

The City Assessor is responsible for listing and keeping the records for all real and personal property in the City of St. Clair. Real property is generally land and all things attached to it. Personal property would include machinery and equipment and is generally claimed by commercial and industrial businesses. The City Assessor is an administrative officer of the City and is appointed by the City Superintendent with approval of the City Council and works under the direction of the City Superintendent.

Each year the Assessor is required by state law to individually place an assessment equal to fifty percent of true cash value on all property in the jurisdiction. An assessment roll is created from these assessments and is one of the factors in determining the property tax bill. In 1994 Proposal A was passed which says taxes will be based on taxable value. Taxable value is the lower of the State Equalized Value (SEV) or the Cap Value (simplified, the cap value is based on the cost of living increase). The local taxing jurisdictions determine the millage rates which determine the total amount of taxes to be collected. The local taxing jurisdictions are the City of St. Clair, East China School District, St. Clair County, St. Clair County Regional Education Service Agency, St. Clair County Community College, and the State of Michigan for the State Education Tax.

The State Tax Commission provides assessors with manuals and guidelines to follow to help maintain uniformity and equality in the assessments. Sales studies are also prepared annually to help estimate values.

With the exception of a few records (such as personal property statements and real property confidential forms) all records in the Assessor’s office are available for review by the Public. These records would include the property parcel cards, legal descriptions, sales study data, lot and building sizes, plat maps, and the State Tax Commission manuals.

By state law, the assessment rolls must be completed by the first Monday in March and be available for review by the taxpayers. After receiving their change of assessment notices in February, an informal review with the Assessor may be requested by the taxpayer prior to the more formal review conducted by the Board of Review at their March meetings. The Board of Review are City of St. Clair citizens appointed by the Mayor and City Council to review the assessment rolls. The Assessor serves as the secretary to the Board of Review.

Board of Review

The Board of Review consists of five members of the community appointed by the Mayor and City Council for one year terms. One member must be licensed by the State of Michigan to engage in real estate transactions and each of the three voting wards shall have at least one member. Property owners who are dissatisfied with their property assessments have the right to appear before this Board with their protests.

The Board of Review meets annually in March to review property assessment rolls for completeness, accuracy and uniformity, and to check for errors and injustices. Any property owner who feels there may be an error in assessment or who has questions or comments should attend one of the sessions.  Property owners are encouraged to make an appointment to appear before the Board by calling 810-329-7121 or by coming in person to the City offices. Hearing dates are included on the change of assessment notices that are mailed in February and are also published in the local paper in February as required by state law.

To protect a taxpayer’s right for further appeal to the Michigan Tax Tribunal, state law requires a taxpayer, or his or her agent, to file timely a protest to the March Board of Review. This may be done in person or by letter. All protests must be received before adjournment on the final day of the meetings.

At the hearing, you will be expected to present information as to why the assessment is incorrect. Appointments are scheduled at ten minute intervals so any information presented must be concise and factual. Decisions are not usually made at the meeting since the Board may request further information from the Assessor or taxpayer to use in making its decision.

A written notice of the Board’s decision will be mailed to each taxpayer who protested to the Board. This notice also contains information on further appealing to the Michigan Tax Tribunal if the taxpayer is dissatisfied with the decision of the Board. You must protest to the March Board of Review in order to appeal their decision to the Michigan Tax Tribunal.

The Board of Review also meets in July and December for the purpose of correcting errors and mistakes.

        What to Look for When Preparing for the Board of Review

1. Is the field sheet accurate? If not, what is incorrect? It may be necessary for the Assessor to do an on-site inspection to verify the facts presented by the taxpayer.

2. Do you have any comparables (properties like your own) that might indicate a different value? What are the differences between the comparables and your property?

3. Have you had an outside appraisal done recently? You may want to have copies available for the Board to review.

4. Are there any structure defects which would cause a temporary reduction in the value? Are they deferred maintenance? Approximately how long and how much would it take to fix them?

5. Are there are nuisance factors which could affect the value of the property? What are they?

6. Is the location a unique factor for the property? In what way?

When looking up any information at the Assessor’s office, make sure you are prepared. You will need addresses or names of any home you may want to look up. Be familiar with your area for any unique problems. Know your neighbors – is their property "exactly" like yours?

Property owners are justified in being concerned about their rising property taxes. Other than being able to vote for certain millages, the only other recourse you have is to appeal your assessed property value.

Taxpayers need to be able to separate taxes from assessments. School boards and other taxing authorities establish the millage rates which calculate the tax bill. The assessor estimates the value of your property.

It is important to be prepared when appealing your assessment. You need to understand how the value was arrived at. This will assist you when constructing your case. Try and find some properties that are similar to yours and which might have sold recently. You will need to find out what their assessed values are, the prices they sold for and any other additional information you feel may be important.

Try and remember that the assessor is not the enemy. They are following the State constitution and laws to perform their jobs. Their office can and will be able to provide you with information needed to file your appeal. Make sure you follow all instructions carefully. If the steps outlined by the March Board of Review and Michigan Tax Tribunal are not followed, your case could be dismissed.

Properties are estimated on the fair market value which is the price most people would pay for it in its condition on the assessment date. The best indicator of fair market value are sales of similar properties. Even if your property recently sold, other factors are used in determining market value. These factors could be other sales in the area, sales that would be considered as qualified, and adjustments for special circumstances that could decrease or increase prices.

A popular misconception on assessed values is that property values do not increase and the values should go down because of depreciation. Physical change is not the only reason for a change in value. The market has a lot to do with property values. If a neighborhood is decaying or has a deterrent factor such as a new factory being built – this could cause property values to decrease. Conversely, if a neighborhood becomes "fashionable" – this would cause property values to increase. A shortage of homes in a desirable area can send sale prices to outrageous levels. The assessor and homebuyers all need to pay attention to the same market factors when valuing property.

The Assessor’s office collects the data necessary for valuation of property. This information is recorded on the property assessment card which may be reviewed for accuracy by anyone. The cost figures used on the assessment card are provided by the State Tax Commission and updated yearly.

By State law, the burden of proof for a claim that the assessment is incorrect and should be changed is on the person making the appeal. The taxpayer or representative needs to present a well documented case to achieve a lower assessment.

The appeals process is determined through State law. An optional step is to have an informal meeting with the Assessor. Otherwise, property owners are notified yearly in February for that year’s assessment. On this "change of assessment notice" will be the new SEV, taxable value and dates the Board of Review will meet in March. Before appearing before the Board of Review, it is helpful to review your property card for accurateness. More information is provided under Board of Review.

If the only changes to be made to the property card are corrections, the Assessor can settle these problems at an informal meeting. If after the changes are made and the taxpayer is still not satisfied with the new assessed value, they may still petition the Board of Review at the March meetings.

If the taxpayer disagrees with the Board of Review’s decision, the next and highest level of administrative review is the Michigan Tax Tribunal. Information on how to contact the tribunal is printed on the answer that is mailed by the Board of Review. Usually, additional information is necessary to present to the Tribunal. This might include more comparables, sales, differences in property cards that are similar, etc. The Assessor’s office can be a great help in locating this information. Sometimes, after reviewing this information with the taxpayer, a settlement can be reached by the Assessor and taxpayer. In this case, the taxpayer’s petition with the Tribunal is settled and no meetings with the Tribunal are scheduled. Meetings with the Tribunal for the City of St. Clair are usually held in Port Huron for small claims court and in Lansing for full tribunal cases.

Try to view the Assessor’s Office as an ally, not an enemy. Employees are trained to be helpful. If the taxpayer requests information in a polite manner, information needed for a successful appeal can be obtained easier and faster.

The following forms are usually provided to the buyer at closing. If you were not provided these forms and are required to file, copies are available at the City Office.

If you own and occupy your Principal Residence, it is exempt from a portion of your local school operating taxes. To claim an exemption, a Principal Residence Exemption Affidavit (Homestead Affidavit)  must be completed and filed with the City Assessor by May 1^st. You must own and occupy your home by May 1st to be entitled to receive this exemption for the current year. This "exemption" is for a part of the taxes and does not affect your assessment. Those who do not file or who are not qualified to file a Principal Residence exemption pay an additional 18 mills per thousand of taxable value.

There are two forms which are filed that deal with the Principal Residence Exemption. The first is filed by the homeowner and is called the Principal Residence Exemption Affidavit. The second form is filed by the previous owners and is called Request to Rescind/Withdraw Principal Residence Exemption. Instructions for filing both of these forms are found on the back of the form. The original is required to be filed with the City Assessor as required by the State. The form should be completely filled out as blank spaces will result in delaying the filing of the form.

The Property Transfer Affidavit is used by the City Assessor to ensure the property is assessed properly and received the correct taxable value. The Michigan Constitution limits how much a property’s taxable value can increase while it is owned by the same person. Once the property is sold or transferred, the taxable value is adjusted to equal the SEV the year following the sale.

The Property Transfer Affidavit is required to be filed by law under MCL Section 211. The law also states this form must be filed within 45 days of the transfer of ownership or a penalty of $5.00 per day up to a maximum of $200.00 would apply. To avoid penalties, it is recommended the form be filed immediately after the purchase of a property.

There are certain types of transfers of property that are exempt from adjustment. A full description can be found in MCL Section 211.27a(7)(a-m). An abbreviated list can be found on the front of the form.