Danby Township

Office Hours
Office Hours at the Township Hall one Saturday evening and one Thursday evening per month. Office hours may be made for other times at the township hall by calling for an appointment.

On March 15, 1994, Michigan voters approved the constitutional amendment known as Proposal A. Prior to Proposal A the property tax calculations were based on the State Equalized Value. Proposal A established Taxable Value as the basis for the calculation of the property taxes. Increases in Taxable Value are limited to the percent of change in the rate of inflation or 5%, whichever is less. This will be true as long as there were no additions or losses to the property.

Each year the local assessor determines the Assessed Value of each parcel of real property based on the condition of the property as of Tax Day December 31 of the previous year. Land value is determined by vacant land sales. Building value is determined by using the State Tax Commission construction cost that includes both labor and materials. Assessed Values for properties that have been sold are compared to the sales price of that property. This is known as a 2 Year Sales Study. For the tax year of 2009 the sales in the study would be from April 1, 2006 through March 31, 2008. An average of difference is arrived at and then applied to all of the properties in that class.

The State Equalized Value is the Assessed Value as adjusted following the county equalization and the state equalization.

Capped Value is the value established when the prior year Taxable Value, with adjustments for additions and losses, is multiplied by the Consumer Price Index. The multiplier cannot be greater than 1.05 (1 + 5%). It represents the change in the rate of inflation during the previous year. The final product is Capped Value.

The Capped Value limitation on taxable Value does not apply if you purchased your property last year.

Taxable Value is the lesser of the State Equalized Value or the Capped Value unless the property experienced a Transfer of Ownership in the prior year. In that case the Taxable Value will be the same as the State Equalized Value.

When ownership or interest in a property is transferred the following year’s State Equalized Value becomes that year’s Taxable Value. The Taxable value will become capped again for the second year following the transfer of ownership.

In the past Foreclosure sales were not considered a valid sale. The foreclosure sale was not used when adjusting Assessed Values to market values in sale studies. With the recent increase in foreclosure sales specific guidelines have been established by the Michigan Department of Treasury to determine if they can be considered arms length transactions and included in Assessed Value setting sales studies.

Agricultural     101 and 102    40 Acres and larger

Commercial     201 and 202

Industrial         301 and 302

Residential      401 and 402

Commercial     251

Industrial         351

Utility              551

Real and Personal Property Classes for assessing purposes are not the same as zoning classes of property.

Please look at your December 2009 tax bill, and check the P.R.E. section with the percentage. If you purchased and moved in to your home before or on May 1^st of this year your Principle Residence Exemption percentage most owners should be 100% for 2009. If you purchased or moved into your home on or after May 2^nd of this year your Principle Residence Exemption will not start until the following year 2010. If you believe that the PRE amount is incorrect please call the assessor Stephen D Smith at 517.647.2345 or 517.331.1857 right a way.

For Agricultural properties to get the Qualified Agricultural Exemption of the 18 School Mills they must following conditions. The agricultural property  should be 40 acres and larger. The amount of land that is under tilled agricultural production must be 51% or greater.

Each year in February prior to the March meetings of the local boards of review, an informational notice is mailed out to each property owner. The Notice of Assessment has the following information on it. Assessed Value, Taxable Value, Property Classification, percent of exemption as a Principal Residence or Qualified Agricultural Property, and if there was or was not a Transfer of Ownership. The March Board of Review meeting dates and times are also included in this notice. 

If you believe the Assessed Value is more that half the value of your property, you may appeal the Assessed Value, Taxable Values, Property Classification, Principal Residence Exemption, Qualified Agricultural Exemption, and Hardship Exemption at the March Board of Review.

The current year value may only be appealed at the March Board of Review. The July and December Board of Reviews to not hear current year value appeals.

If you think the Principle Residence Exemption percentage amount is incorrect, please call your assessor right away. Call the assessor Stephen D Smith at 517.647.2345 or 517.331.1857 even if you are not going to pay your December 2009 taxes until some time next year in 2010. Your assessor can make a change to your homestead percentage at the December 8, 2009 Board of Review. The December Board of Review will take place at 7:00 Pm at the township hall. After the December Board of Review, your assessor will not be able to correct the 2009 Principle Residence Exemption percentage until July Board of Review in 2010.

Under the 1997 State Land Division Act to sell a part of your property, less than 40 acres you will need to fill out and submit a land division split application for approval by the township. Call the assessor Stephen D Smith at 517.647.2345 or 517.331.1857 to obtain a land division split application.

The state allows some agricultural land 40 acres and larger to enter into this program. The agricultural property in this program is exempt from some development special assessments. The program also allows for paying back to the property owner through the state income tax form of property taxes over a certain percentage of the owner annual income.