Frequently Asked Questions

Unless a specific exemption applies, all owners of real and personal property in the city pay property taxes. Real property represents land and buildings. Personal property represents the furniture, fixtures, and equipment of businesses in Grosse Pointe Park

Property taxes are calculated by multiplying two factors- the taxable value of the property and the millage rate.

The taxable value of a property is determined by the Assessor's Office. Under Proposal A, which was approved by voters in 1994, taxable value cannot increase faster than 5% per year or the rate of inflation, whichever is less, until the property transfers ownership. In the year following a transfer of ownership of property, the property's taxable value is half of the property's market value. Physical changes to a property (i.e., new construction) can also result in a property's taxable value increasing faster than the rate of inflation.

Each governing body that levies property taxes sets its own millage rate annually. Usually, a city charter or a vote of the electorate has determined the maximum number of mills each governing body can levy. A mill represents $1 per $1000 of taxable value.

A Principal Residence Exemption allows for up to 18 mills of local school operating taxes to be exempted from taxation. A Principal Residence is defined in MCL 211.7dd(c) as the "...[one] place where an owner of the property has his or her true, fixed, and permanent home to which, whenever absent they intend to return and that shall continue as a principal residence until another principal residence is established."

Every property owner has the right to appeal their assessments. However, the opportunity only comes once a year and if the opportunity is missed, there isn’t another opportunity for that year. Your yearly Assessment Change Notice will provide you with the dates and times for the March Board of Review.

If you wish to contest your assessment, you must make an appointment to appeal to the March Board of Review. A nonresident may protest to the Board of Review by a letter that is accompanied by a completed Board of Review petition. Protest at the March Board of Review is necessary to protect your right to further appeals to the Michigan Tax Tribunal for valuation and exemption appeals. In other words, the Michigan Tax Tribunal will not hear cases that have not first been before the local March Board of Review.

The current sales information for your neighborhood may show no value increase over last year's value. However, the taxable value is tied to the Consumer Price Index (CPI) and calculated annually causing an increase in your taxable value. Until your taxable value meets your assessed value, your taxable value will continue to increase the CPI or 5%, whichever is less.

In Michigan, an Assessor is responsible for determining the value of properties for the purpose of taxation. The assessment process can be summarized as follows:

1. Locate and identify all taxable property
2. Inventory all property noting specific characteristics of each parcel
3. Estimate market value
4. Determine tax status - taxable or exempt
5. Calculate assessed, capped, and taxable values
6. Prepare certified assessment roll
7. Notify property owners of changes to their assessments
8. Defend values when appealed
9. Prepare tax roll

The Michigan legislature has defined true cash value as the usual selling price of a property.

Assessed Value is 50% of a property's True Cash Value. The assessed value can fluctuate annually based on changes in the real estate market, property improvements, or neighborhood conditions.

The capped value is a mechanism designed to limit the annual growth of a property’s taxable value, preventing sudden spikes in property taxes. The capped value is calculated based on the prior year's taxable value, adjusted by the rate of inflation or 5%, whichever is lower. It ensures property taxes do not increase too rapidly when property values rise, providing stability to taxpayers.

Assessed value change vary according to the individual characteristics of a house in relation to sales in your area. Building style, size and amenities such as porches, decks, garages, and extra bathrooms affect value estimates.

The assessed value is 50% of the True Cash Value (TCV), which reflects the property’s market value as determined by the Assessor—not necessarily the recent sales price. The Assessor calculates TCV based on market conditions, property characteristics, and comparable sales—not solely on individual sale prices. This means the sales price you paid is just one factor in determining market value, and it might differ from the Assessor’s valuation. While we hope your value estimate is close to your sale price, it is an estimate and may not be the same as your recent sale.

In Michigan, the Assessed Value (AV) of a property is set at 50% of its True Cash Value (TCV), which reflects the property's estimated market value as of December 31 of the previous year (Tax Day). To determine TCV, Assessors use various methods, including the sales comparison approach (comparing recent sales of similar properties), the cost approach (estimating the cost to replace the property), or the income approach (for income-producing properties). These methods are then adjusted to reflect local market conditions.