Assessing FAQ

How is your property value estimated?
The Assessor estimates the value of your property typically by first examining and collecting information on the physical characteristics of the property. Physical characteristics can include, among others, the square footage of land and improvements, whether or not the improvements include a garage, the number of bathrooms, and the nature of amenities such as swimming pools and fireplaces.

What is the 20% parcel review?
To comply with the State Tax Commission guidelines, Paw Paw Township is required to conduct field review of 20% of its properties every year. The property review is to ensure all buildings and structures are accounted for and accurately measured. Property Record Card photos should also be updated at this time.

What is a State Equalized Value (SEV)?
50% of Market Value or True Cash Value, commonly referred to as your property assessment.

What is Capped Value (CV)?
The formula is: Previous year’s Taxable Value minus Losses (physical changes to the property) times the Consumer Price Index (CPI) or 5%; whichever is less, plus Additions (physical changes to the property), (TV-Losses multiplied by CPI (5%) plus Additions equals CV).

What is Taxable Value (TV)?
Is the value upon which property taxes are based. TV is the Lesser of State Equalized Value (SEV) or Capped Value (CV). TV in the year following a transfer of ownership (sale, gift, inheritance, etc.) is equal to the SEV.

When can I appeal my assessment?
By law, the only time you may appeal your assessment is at the March Board of Review. However, you may meet with the Assessor at any time during the year to discuss your assessment

How do I qualify for the Principal Residence Exemption?
The Principal Residence Exemption (PRE) (formerly known as the homestead exemption) exempts a residence from the tax levied by a local school district for school operating purposes. The qualifications in Paw Paw Township are simple: you must own and occupy the home as your principal residence on or before November 1st and file the Principal Residence Exemption (PRE) Affidavit with the Assessor (Ben Brousseau, 269-655-1144). The exemption continues until the use of the home as your principal residence changes. When the change occurs, you must file a Request to Rescind principal Residence Exemption with the Assessor. Proposal A and state law does NOT allow for partial credit. As an example, even if you move into a non-homestead property on November 5th, the exemption does not begin until the following year. Recent legislation has allowed the granting of a second homestead in certain conditions. A “Conditional Rescission” is available when the previous principal residence is not occupied or rented and is listed for sale. Please contact the Assessor if you think you qualify for the additional exemption.
The PRE is different from the Homestead Property Tax Credit, which is related with you Michigan Individual Income Tax Return.