Assessing

Understanding your property assessment

This article first appeared in the Winter 2026 Laketown Township Newsletter.

By Don Jollay

Each year, Laketown Township mails Assessment Change Notices to property owners. While easy to overlook, this notice contains important information that affects how property taxes are calculated. Understanding basic assessment principles helps ensure fairness and prevent confusion.

Laketown Township encourages all property owners to review their assessment notice annually. Understanding how assessments, uncapping, and exemptions work promotes fairness and transparency for everyone.

Key property value terms

Michigan property taxes are based on three values:

Assessed Value (AV): The assessed value represents 50 percent of a property’s estimated market value, also known as true cash value.

State Equalized Value (SEV): The SEV is the assessed value after county and state equalization review. In most cases, AV and SEV are the same.

Taxable Value (TV): The taxable value is the number used to calculate property taxes. Under Proposal A, annual increases are limited to the lesser of 5 percent or inflation/ CPI (Consumers Price Index), unless an exception applies.

Why values change

Assessment changes do not automatically mean higher taxes. Values may change due to:

• Real estate market trends
• New construction or improvements
• Corrections to property records
• Removal of damaged or demolished structures

Taxes are calculated using taxable value, not assessed value.

One of the most common misconceptions is why taxes often increase the year after a property is purchased.

When a transfer of ownership occurs, Michigan law requires the property’s taxable value to be “uncapped.”

This means:

• The taxable value is reset to match the current assessed value
• The Proposal A cap is removed for that year only
• Future increases are capped again after the reset and only increased by the CPI or new
• construction.

Uncapping is not a tax increase and is not discretionary. It reflects the end of the previous owner’s capped taxable value and applies to most property sales and transfers.

Principal Residence Exemption

The Principal Residence Exemption (PRE) exempts 18 mills of school operating taxes on a homeowner’s primary residence.

To qualify:

• The property must be your primary residence
• A PRE affidavit must be filed with the township

If the home is sold, rented, or no longer used as a primary residence, the PRE must be rescinded. If you have a pre on another property, it must be rescinded before another can be approved. Incorrect claims may result in back taxes, penalties, and interest.

Reading your assessment change notice

Your Assessment Change Notice provides a summary of how your property is valued and taxed for the current year.

Your notice shows:

• Prior and current assessed value
• Prior and current taxable value
• Exemption status, including Principal Residence Exemption
• Appeal rights and deadlines

Property owners are encouraged to review the notice alongside the handout and verify that all property details are accurate.

Why reviewing your notice matters

Reviewing your assessment notice helps:

• Catch errors early
• Understand uncapping or PRE changes
• Avoid surprises when tax bills are issued

If you disagree with your assessment, you may appeal to the March Board of Review. Deadlines are firm and listed on the bottom of the Assessment Change Notice.

Frequently asked questions

Why did my taxes increase after I bought my home?
The taxable value was uncapped following the transfer of ownership.

Does assessed value determine my taxes?
No. Taxes are based on taxable value.

Does uncapping happen every year?
No. Uncapping occurs only the year immediately following a transfer of ownership.

Can I lose my PRE?
Yes, if the property is no longer your primary residence or if ownership changes.

Questions or assistance

For questions about your assessment, uncapping, PRE status, or appeal options, contact:

Laketown Township Assessor’s Office
4338 Beeline Rd, Holland, MI 49423
(616) 335-3050

Don@laketowntwp.org

Don Jollay is Laketown Township Assessor.

2026 ECF Studies

2026 Land Value Data

Parcel Information here

Accessibility Policy here

Inflation Rate Multiplier for use in the 2024 capped value formula and the “Headlee” Millage Reduction Fraction (MRF) formula here