HADLEY TOWNSHIP

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Michigan law requires assessors to set the assessed value of all property
at approximately 50% of what the property would sell for on the open
market. As property values increase and decrease, assessments are
adjusted to reflect the changing market. However, many assessments are
based on sales dating back to more than a year ago. So, today's market
values may not affect the current assessment, until much later. Contrary to
popular belief, the local assessor is not a "tax assessor". Assessors do
not assess taxes, they appraise property and determine its value so that
value can be placed on the assessment roll in accordance with Michigan
Law. Assessors, who typically visit property and appraise it early in the
year, have no idea what the property tax rate - approved by voters - will be
by tax time later in the year. Assessors do not raise assessments in order
to increase taxes. Assessments are strictly controlled by law, and are
separate from the property tax rates approved by voters. The county's
Equalization Department performs an annual study to review property
sales in the township and compare the actual sale prices to the assessor's
appraisal. They inform the local assessor of their findings, which
determines the amount of adjustment to be made to assessments
throughout the township. The assessor must then determine the amount of
adjustment on a neighborhood-by-neighborhood basis, based on sales in
that area.

IF YOU PURCHASED YOUR PROPERTY LAST YEAR, ITS TAXABLE
VALUE WILL BE ADJUSTED THIS YEAR TO EQUAL ITS ASSESSED
VALUE. MICHIGAN LAW REQUIRES ALL ASSESSORS TO ADJUST A
PROPERTY'S TAXABLE VALUE TO EQUAL ITS ASSESSED VALUE IN
THE YEAR IMMEDIATELY FOLLOWING A TRANSFER OF
OWNERSHIP. AFTER THIS INITIAL ADJUSTMENT, AS LONG AS YOU
OWN THE PROPERTY, ITS TAXABLE VALUE CANNOT INCREASE
MORE THAN 5% PER YEAR.

Since assessments are required by law to be set at 50% of market value,
they will continue to change if the sale prices of homes and property in the
area change. As long as you continue to own your property, however, the
taxable value on which you pay taxes, is capped and cannot increase
more than 5% in a single year, even though your assessment may
increase by unlimited amounts. The cap that prevents taxable value from
increasing more than 5% (or the rate of inflation, whichever is lower) is set
each year by state officials and is based on the Consumer Price Index
(CPI). Taxes are levied on Taxable Value NOT Assessed value.

TOWNSHIP ASSESSOR

PAT HANEY

1) Why does the assessed value change from year to year?
The assessed value must reflect 50% of market value. As market value
changes, so does your assessment. For instance, if you add a garage to
your home, the assessed value increases. However should your property
be permanently damaged by fire, the assessed value would decrease.
Property owners have a responsibility for reporting any changes made to
their property that would affect its value. When you obtain a building
permit, our office is notified by the Building Department.

2) Why do assessments go up when a property hasn't changed?
Market value is a product of the price paid for the property. Since
assessments must be set by market value, changing real estate values in
the community will be reflected in the assessments. As prices
increase/decrease, so does market value. All property values do not
change to the same degree. Many factors influence values. Properties with
water or scenic views, for example, may increase more rapidly than
others.

3) What is taxable value?
The taxable value was created upon the passage of Proposal A, by the
electorate in 1994. The taxable value is the lower of the State Equalized
Value or the capped value. This is the value used times the millage rate
that produces the amount of taxes levied against the property.

4) What is the capped value?
The taxable value can increase from year to year by 5.0% or the amount of
the Consumer Price Index (CPI), which ever is less. Additions or losses to
the property are also taken into consideration. The formula is the previous
taxable value, minus losses, x 1.05% or the CPI, which ever is less, plus
any additions = capped value.

5) If I am unhappy with the assessed value or taxable value, what can I do
about it?
The first thing you should do is talk to your local Assessor about the
valuation on your parcel. Check the appraisal records to make sure all
components of the property are correct. If you wish to proceed at this point,
you must make an appointment with the March Board of Review to lodge
an appeal. The Board of Review is set up under the Michigan General
Property Tax Law. The three member board is appointed by the Township
Supervisor and approved at a public meeting by the Board of Trustees.
The Board of Review will hear your appeal and will make a decision using
their best judgment.

6) I will be out of town during the March Board of Review, how can I lodge
an appeal?
You may send a personal representative or a letter of explanation. Please
include the reason for appealing your assessed value, the parcel
identification number, your address and telephone number. The Board of
Review will make a decision and notify you by first class mail.

7) What if I am not satisfied with the Board of Review decision on my
appeal?
You have the right to file an appeal with the Michigan Tax Tribunal. This
appeal must be filed with the Tribunal on or before June 30, of the current
year.

8) Am I allowed to view my appraisal records?
Yes! Most departmental records are considered public record and are
open for inspection during normal business hours.

Why does the assessed value change from year to year?
Why do assessments go up when a property hasn't changed?
What is taxable value?
What is the capped value?
If I am unhappy with the assessed value or taxable value, what
can I do about it?
I will be out of town during the March Board of Review, how can
I lodge an appeal?
What if I am not satisfied with the Board of Review decision on
my appeal?
Am I allowed to view my appraisal records?

Before you buy property in Hadley Township, be sure to research the
property and its surroundings. Here are some things to look for:

PROPERTY TAXES
Contact the township and obtain the assessed value of the property you
are considering buying - not the current property tax being paid by the
seller. Your property taxes will not be the same as the current owner. In the
year following your purchase of the property, your property taxes will be
based on the assessed value. The previous owner paid taxes on the
property�s taxable value. There may be a significant difference. This is a
State Law, and local officials have no control over this �uncapping� of
property taxes.

ZONING OF THE PROPERTY AND SURROUNDING AREAS
Obtain a copy of the Hadley Township Zoning Ordinance and map. The
map will show the current zoning of property, while the zoning ordinance
will describe what types of land uses and developments are permitted in
each zoning district. The zoning map will show the zoning of surrounding
properties. Always assume that any type of development permitted by the
zoning ordinance may occur. For example, if your property is located near
vacant land zoned for commercial use, plan on the property being
developed for any commercial use allowed by the zoning ordinance. If a
proposed development is located in the appropriate zoning district and
meets all zoning ordinance requirements, the township must - by law -
approve it. This applies to all types of development - from new homes to
industrial parks.

LONG-RANGE PLAN (MASTER PLAN) OF THE AREA
Obtain a copy of the Hadley Township Master Plan and map. Unlike the
zoning ordinance, the master plan shows possible future development
and land uses that are likely to occur during the coming years. Local
planning officials use this document when considering proposed land use
changes, such as rezoning requests. A proposed rezoning that is
consistent with the township�s long-range plan, may likely be approved.
For example, a parcel of land currently zoned for residential use, but
�master-planned� for future commercial use may be rezoned for any
commercial use permitted by the zoning ordinance.

PROPOSED DEVELOPMENT PROJECTS
Contact the Hadley Township Planning Commission or Township
Supervisor to see if there are any known development proposals under
consideration or �in the works� in the area of the property you are
considering purchasing. If you are buying property next to vacant land,
assume that the vacant land will be developed. The township planning
commission reviews all non-residential projects, special land use
requests and rezonings. The planning commission does not review
proposals for each new single family home constructed. New
single-family homes, as long as they are constructed in the appropriate
zoning district and meet all building code requirements, are permitted
without planning commission approval.

FUTURE ROAD PAVING AND IMPROVEMENT PLANS
Contact the Lapeer County Road Commission to see if there are any
future road improvement plans in the area, and ask if the road is public or
private. Private roads are private property and neither the township, nor
the road commission, can maintain or improve them.

DEED RESTRICTIONS
Deed restrictions over-ride township authority. Many properties,
especially in platted subdivisions or along private roads, are subject to
certain restrictions and requirements established by the original
developer or a previous owner. These covenants, often more strict than
township regulations, are binding upon the owners of the property and
commonly set minimum building standards and, in some cases, establish
association fees. These restrictions are not imposed or enforced by the
township.

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