Question: How are property taxes calculated?
Answer: Property taxes are calculated by multiplying two factors-the taxable value of the property and the millage rate.
Question: What is the taxable value?
Answer: The taxable value of a property is determined by the Assessor’s Office. Under Proposal A, 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.
Question: What is the millage rate?
Answer: Each governing body that levies property taxes sets its own millage rate annually. Usually, charter or a vote of the electorate has determined the maximum number of mills each governing body can levy. A mill represents $1 per $1,000 of taxable value.
Question: Who does the Township of Paw Paw collect property taxes for?
Answer: The taxes are collected for the operation of the Township itself, as well as Decatur, Lawton and Lawrence and Paw Paw School Districts, Van Buren Intermediate School District, Van Buren County, the Village of Paw Paw, Van Buren Library, Paw Paw Library, Senior Services, Paw Paw Fire Department and the State of Michigan.
