People often ask whether the number on their City of Grand Rapids tax bill is what the house is worth. It is not, and the difference matters when a family is settling an estate or splitting a house.
Three numbers, three jobs
- A recorded sale tells you what two parties agreed to once, in a certain month. The Kent County Register of Deeds holds those records.
- A taxable value is a property-tax label. Michigan distinguishes taxable, assessed and state equalized value (Michigan Tax Tribunal glossary), and a transfer of ownership can reset the taxable value (MCL 211.27a).
- An appraisal is an independent opinion of value for one property, on one date, for one purpose, written down with the sales and reasoning behind it.
Why the date matters
For a tax appeal, Michigan values a property at its usual selling price on tax day, December 31 of the year before (MCL 211.27; MCL 211.2). For an estate it is the date of passing. For a sale it is today. The same house has a different value on different dates.
Why the purpose matters
A report for a probate inventory, one for a divorce and one for a tax-basis question do not read the same, because each reader needs something different from it. That is why we ask what the report is for before we quote.
What an appraisal is not
It is not a guarantee of a sale price, a legal opinion or a tax opinion. Your attorney or adviser handles those.
If you are not sure which of these you need, call 616-816-1943.