Your Taxes, and Why They Increase
Taxes increase for two reason, voted upon millages and when a properties taxable value increases.
On March 15, 1994, the voters of the State of Michigan approved Proposal A. Under Proposal A, every property began to carry two values, an assessed value (50% of Market Value) and a taxable value. The taxable value is used in conjunction with the millage rate in order to generate the amount of tax levied on a piece of property. In 1994 the taxable value and the assessed value were the same. From that point on, the taxable value has been limited to an increase by the rate of inflation or 5%; whichever is less, with two exceptions:
- If you physically add something new to your property such as a pole barn or an addition, the value of the improvement is added to the taxable value.
- The year after the property sells, it "uncaps", meaning whatever the assessed value is on the property will automatically become its taxable value.
Assessed value is not limited, and is determined by the market. Even when experiencing a "down market" with dropping assessments, taxable values can still go up. For example, your assessed value is $70,000 and your taxable value is $58,976 a "down market" has caused your assessment to drop to $62,000. Your taxable value will still increase by the rate of inflation or 5%, whichever is less. Although your assessment has shown a loss of $8,000 your taxable value could increase to as much as $61,924 (5%).
In 2006 millage rates were increased by 1.70 mills. In the August 8, 2006 election Genesee County voters voted to approve a countywide senior citizens millage for .70 mills. This revenue is used to provide several services available to seniors in Genesee County. Also, on November 7, 2006 Genesee County voters approved the Health Services millage for 1.0. The Health Service millage provides funding for uninsured residents in Genesee County.
The millage levied for Vienna Township has not changed since 1992. Taxable value increase is not generated by the Township, but are mandated by PA 415 of 1994. Vienna Township serves as the collecting agent for your taxes.