Annual Report

Mission Statement

To develop an annual assessment roll pursuant to mandates of the State Property Tax Law and the City Charter.  The Department coordinates activities of the Board of Review and develops special assessment rolls.

Goals

• Maintain a fair, equitable assessment administration system in compliance with the City Charter and the Michigan General Property Tax Laws.
• Provide a professionally certified staff to meet our objectives.
• Ensure open public relations and access to our property records.

Assessment Uniformity

 

During the second half of the year is when we spend a considerable amount of resources ensuring our primary goal of assessment equity and uniformity is attained.  By July, we have reviewed and analyzed property sales throughout the community to determine the indicated assessment uniformity measures in roughly 200 neighborhoods (economic areas).  Based on this, our real property appraisal staff is directed to conduct door-to-door reappraisals through late Fall.

 

Since our implementation of a door-to-door Reappraisal Program in 1991, we have attained a marked improvement in our measure of assessment equity and uniformity.  This is important because the basis for spreading the burden of the property tax in Michigan remains value based.  Even with the modifications to the taxable value calculation brought on by Proposal A, the underlying constitution requirement for assessment uniformity is still in place.

Assessment uniformity is best measured statistically by the median coefficient of dispersion (COD).  A high or commendable degree of assessment uniformity is indicated by COD's in the range of 5.0 - 15.0 for single-family residential property.  The newer and more similar the homes, the lower the COD can be expected to be attained.

The City of Rochester Hills residential assessment uniformity measure (the median coefficient of dispersion (COD)), in 1991 was just over ten (10).  In approximately four years, assessment uniformity was improved dramatically as indicated by a COD in the area of six (6).  Since 1995, we have maintained a relatively stable and high standard of assessment uniformity and will strive to improve upon this level of performance and record data accuracy.

 

During the 2006 reappraisal season, a door-to-door property review was completed in the following residential subdivisions: Section 17A, Spring Hill 1&2 Subdivision; Section 17F, Spring Hill 3&4 Subdivision; Section 07D, Bellarmine Hills Subdivision; and, Section 25B, Mackary Subdivision.

The assessing staff also completed 205 exterior property reviews. The exterior review consists of a visual inspection to update property records for air conditioning, decks, patios, irrigation systems and any other assessable improvements. Our sales review program involved a more detailed review of 106 sales in 2007. The Chief Appraiser completed 206 commercial and industrial construction permits. The Chief Appraiser completed a reappraisal of 62 commercial improved parcels and 2 industrial improved parcels. Roughly 43 personal property audits were completed by the City's personal property auditor and 34 by the Oakland County Equalization Division staff.

 

The valuation of the City owned property in 1999, 70 parcels, was a significant part of a larger project to create one document that includes specific information on each City owned property.  This document is useful for capital improvement project planning, estimating insurance and risk factors, research on specific sites and general reference.  The Chief Appraiser updates the valuations of the property listed in this single reference document each year.

 

An annual objective of our department is to maintain a reappraisal schedule that produces a top quality record while achieving an optimum level of assessment uniformity, given our limited resources.  When the sales are available for analysis in the late spring of 2008, we will be prepared to make an informed decision as to where our staff resources can most effectively be utilized in the next reappraisal season.

 

Assessment Roll Development

 

There are numerous other critical activities that support the goal of developing an annual assessment roll under a fair and uniform assessment administration system.  The major programs that take a significant amount of staff resource and are very vital activities are:  the Homestead Affidavit Program, the Property Transfer Affidavit Program and the Land Division Program.

 

The Homestead Affidavit Program was initiated under Proposal A and the original filing deadline was March 1, 1994. Public Acts 312 and 331 provided for a homestead exemption from a portion of school operating taxes. Act 331 requires the affidavit to be filed with the local municipality. Each year, the exemption deadline is May 1^st for new filers. An already existing filing will not require any additional filing as long as the claimant's exemption status remains unchanged. This exemption is now referred to as the Homeowner's Principal Residence Exemption (HPRE). Listed below is a twelve-year history of the activities of and staff resources expended on the homestead exemption program.

 

 

Homestead Affidavits
Month	Affidavits	Updates	Rescinds	Withdrawal	Denials	Letters	Hours Worked
1995 Totals	236	1691	43	n/a	49	239	618
1996 Totals	422	1382	25	n/a	0	136	708
1997 Totals	363	1602	39	n/a	0	379	736.5
1998 Totals	494	1477	35	n/a	0	717	690
1999 Totals	1081	891	523	3	43	909	848
2000 Totals	1769	0	1318	2	28	746	754
2001 Totals	1542	0	1344	2	0	486	737
2002 Totals	1460	0	1225	0	1	464	800
2003 Totals	1599	0	1292	5	1	379	828
2004 Totals	1649	0	1252	1	0	452	824
2005 Totals	1461	0	1128	0	6	459	1018
2006 Totals	1100	0	918	0	4	515	687
2007 Totals	870	0	957	0	53	377	164

 

 

All of the forms and affidavits pertaining to the homestead exemption can be obtained from the Rochester Hills Assessor's Office. If you have adobe Acrobat, you can view and print homestead related forms and information at:

http://www.michigan.gov/taxes/0,1607,7-238-43535_43537---,00.html

 

The Property Transfer Affidavit Program was initiated under Proposal A and became effective on January 1, 1995. Public Act 415, Public Acts of 1994, requires a buyer, grantee, or a transferee of any property to file a real estate transfer affidavit Michigan Department of Treasury 2766 (Rev. 1-07), Property Transfer Affidavit L-4260. This form must be filed whenever real estate and some types of personal property are transferred, even in the event you are not recording a deed.

 

The property transfer affidavit is used by the assessor to ensure the property is assessed properly and receives the correct taxable value.  The property tax reforms instituted under "Proposal A" required a "cap" or limitation on the annual increase in a property's taxable value while the property ownership remains the same. An excerpt from the Michigan 1963 Constitution, Section 3, states: "For taxes levied in 1995 and each year thereafter, the legislature shall provide that the taxable value of each parcel of property adjusted for additions and losses, shall not increase each year by more than the increase in the immediately preceding year in the general price level, as defined in section 33 of this article, or 5 percent, whichever is less until ownership of the parcel of property is transferred."  Therefore, in the tax year following the transfer of the property, the taxable value will "uncap" and become equal to the "assessed value".  The year following the uncapping, the limitation will begin anew until such time the property transfers again.

 

The assessed value is one-half of the assessor's estimate of market value of your property.  The capped value is calculated annually using the following formula:  (Prior Year Taxable Value - LOSSES) x (lesser of the consumer's price index or 1.05) + ADDITIONS = CAPPED VALUE. Taxable value is equal to the lesser of Assessed Value or Capped Value.  The taxable value, the number upon which the property taxes are levied, is determined each year by comparing the assessed and capped values and choosing the lower of the two.

 

A new property owner must file the Property Transfer Affidavit, Form 4260, with the assessor for the city or township where the property is located within 45 days of the transfer. If it is not filed timely, a penalty of $5.00 per day (maximum $200.00) applies.  (NOTE: Under the recommendation of the City Assessor, the City of Rochester Hills City Council has adopted a resolution waiving the late or non-filing fee imposed by Act 415)

 

The mandatory filing of the property transfer affidavit requires the following information be provided: identification of the property transferred; the parties to the transfer; the date of the transfer; and, the actual consideration for the transfer.  Additional optional information regarding the transfer is also requested.  The information on Form L-4260 is NOT CONFIDENTIAL.

 

The City of Rochester Hills Assessing Department, 1000 Rochester Hills Drive, Rochester Hills, MI 48309-3033 has copies of Property Transfer Affidavit, Form 2766 and is available to answer questions regarding the form at (248) 656-4605.

 

During the year 2007, the property transfer program involved the following significant activities:  the review of 1,465 deeds; the review of 1,110 property transfer affidavits; the partial uncapping of 40 parcels; and the review of 727 exempt transfers.

 

The Land Division Program for the City of Rochester Hills is coordinated by the Assessing Department. The reviewing departments involved in the process are: Assessing; Building; DPS/Engineering and Planning.

 

Passage of the Land Division Act, effective April 1, 1997, changed the requirements for dividing unplatted parcels of property.  To effectively and efficiently process divisions of unplatted (metes and bounds) parcels in the future, we needed to create a document noting the status of each unplatted parcel as of April 1, 1997.  This document has been our foundation for accurately handling unplatted land divisions since 1997.

 

During 2007, the department coordinated the review process for 51 land divisions: 14 parcel splits; 14 parcel combinations, 18 road right-of-way changes; 3 corrections to legal description; and 5 new condominium and subdivision developments. The department processed 2 applications that were put on hold or eventually denied.

 

One of our ongoing objectives is to continually seek Procedural Improvements to optimize the use of our resources.  This objective is consistent throughout all of our program and services. 

Professional Development

 

The Department of Assessing is and has been committed to encouraging professional development and training.  The staff is given an opportunity each year to request up to five "education" days to attend related professional classes, courses, workshops and meetings. 

 

During 2007, eight staff members attended a 6-Hour Course that qualifies for State Assessors Board Certification Renewal requirements.  Additionally, there was attendance to classes and meetings related to assessment administration. 

 

The City participated in assessment/tax administration professional associations by way of the Assessor/Treasurer position as a Legislative Committee member in the Michigan Municipal Treasurer's Association, a Technology Committee member and an Investment Certification Program Committee member for the Association of Public Treasurers of the United States and Canada.

 

Our objective is to offer opportunities for staff members to obtain State certification in assessment administration.  Those staff members with State certification are given an opportunity to maintain and advance their certification level. Currently on staff, we have 1 Level IV, 6 Level III and 1 Level II. We also have 7 staff members certified as Personal Property Examiners with the State Tax Commission.

 

Staffing

 

The Assessing Department was full staffed for most of the year 2007. The department went through a minor reorganization and the one clerical position was eliminated for the 2008 budget year. The current staff includes: Department Director (Director of Assessing and Treasury); Deputy Director; Chief Appraiser; two Senior Appraisers; Senior Personal Property Auditor; Appraiser II; Assessment Technician; and two Assessing Aides.

 

Public Relations

 

In promoting our goal of ensuring open public relations and access to our property records, we had a productive year.  Each year, every taxpayer of record is noticed of their assessment change for the upcoming assessment year and given an opportunity to meet with our staff to address any concerns or questions they may have. Starting in 2007, the assessment change notice was modified to add the taxpayer's estimated tax increase based upon the property's change in taxable value. The notice also included an explanation of the workings of Proposal A in a declining real estate market. Following our Assessor's Review, there is an appeal process we assist taxpayers through toward resolving any continuing disagreements that exist.

 

Ease of access to our records is an important goal of the Assessing Department.  We have created direct access to our value records, sales studies and maps at our counter. Also, there is Web access to the City of Rochester Hills Assessing Data and Tax Information at the City's website www.rochesterhills.org Once at the site, go to City Services, Assessing, then click on Property Tax Lookup – Online Tax and Assessing Inquiry.

 

We are continuing to review ways upon which our records can more effectively and efficiently be stored, retrieved and disseminated.  In 2007, we completed the input of appraiser comments into the electronic record for easy access. In 2007, we began a project to create an electronic sketch for easy storage and retrieval. The use of the Internet has been expanded to allow customer access to our assessment information. Access to information regarding the Board of Review, Homestead Exemption Affidavits, Personal Property, Property Transfer Affidavits, Tax Abatements, Apartment Reference, Property Record Data and the updated the Semi-Annual and Workload Indicator Reports is available via The City of Rochester Hills Website at www.rochesterhills.org - City Services – Assessing.

 

As we begin 2008, we are committed to our goals of uniform and equitable assessments, a professionally certified staff, promoting professional staff development, improved access to our property records and improved customer service.