Frequently Asked Questions

The Assessed Value shall not exceed 50% of the True Cash Value of the property. The Assessor's Office uses mass appraisal techniques to determine the true cash value of each property every year and sets the Assessed Value at 50% of the True Cash Value. The True Cash Value of a property is synonymous with market value.

Capped Value is a calculation of the previous year's Taxable Value multiplied by the Inflation Rate Multiplier and adjusted for any physical changes in the property. (The inflation rate multiplier is based on a two year average of the Consumer Price Index (CPI)). The Inflation Rate Multiplier for 2014 is 1.016.

The Taxable Value is determined by the lower of the Assessed Value or the Capped Value. Properties that transferred ownership in 2013 will have the Taxable Value set to the Assessed Value for the 2014 tax year. Taxable Value is the basis of the property tax in Michigan and is multiplied by the millage rate to determine the tax amount each year.

State Equalized Value (SEV) is the final Assessed Value after the County and State have completed their equalization processes and have certified the Assessed and Taxable Values. Typically, the SEV is the same as the Assessed Value.

Most property information is public, meaning anyone may look at any property records they choose. Basic assessment and tax information of taxable properties located within the City of Holland is available on the City of Holland website, via phone, or by stopping in to our offices at City Hall.

Website

The suggested and most frequently used source of answering general property questions is our website. It is perhaps the most efficient data source available. It can be used to look up property assessments, tax information, property owner details, land information, building details, sales information and comparables.

Call

For assistance during office hours of Monday through Friday 8 a.m. to 5 p.m. Regarding property valuation/assessment information, contact the Assessor's Office at 616-355-1350. Regarding tax billing, contact the Treasurer's Office at 616-355-1380.

Visit

Our offices are located at City Hall on the 1st floor. The address is:
270 S River Avenue
Holland, MI 49423

The Assessor's Office is located on the north side of the building. The Treasurer's Office is located on the south side of the building

The first tax bill of the year (Summer) is dated July 1st and is due August 15 without penalty, unless it falls on a weekend or holiday in which case the due date is the next business day. The second tax bill (Winter) is dated December 1st and is due February 14th of the following year without penalty, unless it falls on a weekend or holiday in which case the due date is the next business day. Payments received after the due dates are subject to penalties.

You pay taxes based on the taxable value of your property.

• Tax Bill = (Taxable Value / 1,000) x Millage Rate

Example Calculation

An example calculation is as follows using sample values and rates:

• 55,000 taxable value / 1,000 = 55 x 33.8102 mills = approximately $1,860 (using the millage rate with Principal Residence Exemption)

A mill is $1 per $1,000 of the taxable value of your property. This sample calculation does not include:

• The 1% administration fee collected by the City
• Any special assessments that may be assessed against your property
• Any delinquent utilities that may be added to your bill

Should you not be able to pay your entire tax bill by the due date, partial payments are accepted. The penalty rates will apply to the outstanding balance on your tax bill(s).
With your summer bill, after the August 15th due date, a 2% penalty is added. If the summer bill remains unpaid as of September 11th, an additional 4% (for a total of 6%) is added to your summer bill.

If either your summer or winter bill is not paid by the February 14th due date, an additional 3% penalty will added until the end of February. Any real estate taxes not paid by the end of February will be turned over to the residing County in March.

Contact Information

If you reside in Allegan County, please contact Allegan County Treasurer at 269-673-0260 for amount owing. If you reside in Ottawa County, please contact Ottawa County Treasurer at 616-994-4501 for amount owing. Delinquent business personal property taxes will still be collected by the City Treasurer's Office. Please call 616-355-1380 for amount owing.

We accept the following forms of payment:

• At our office - City Hall is located at:
  270 S River Avenue
  1st Floor
  Holland, MI 49423
• Mail - Please include the tax stub and note the parcel number on your check, do not sent cash.
• Drop Box - There is a drop box conveniently located on the south side of City Hall in the parking lot.
• Credit Card - See credit card instructions.

There are three ways credit card payments can be made.

1. Online
2. By telephone at 800-272-9829 or 877-278-9705
3. At City Hall Treasurer's Office

A jurisdiction code is required and the City of Holland's code is "7047". An additional 3% convenience fee will be added to your payment by the processing company.

The City Assessor maintains mailing addresses. Complete the Mailing Address Change Form (PDF) and return a signed and dated copy to the Assessor's Office on the first floor of City Hall.

A Principal Residence Exemption (formerly known as a Homestead Exemption) provides a reduction in local property taxes to residential property owners who own and occupy the property as their principal residence. The Principal Residence Exemption entitles the homeowner to receive an 18-mill reduction in the millage rate. The Principal Residence Exemption applies to a single primary residence and adjacent, vacant properties. A principal residence is defined as "the one place where an owner of the property has his or her true, fixed and permanent home to which, whenever absent, he or she intends to return.

To establish the occupancy of the property as a principal residence, the Michigan Department of Treasury will accept drivers license, voters registration card, cancelled check listing the address, medical and bank statements, insurance policies and income tax records. If the property use is split between residence and business use, the Assessor will need to make a visual property inspection to determine the PRE allocation percentage.

It is simple to apply for a Principle Residence Exemption. All you need to do is visit our website, print and return to us the necessary form (PDF) or you may stop in to our office and pick up a copy of the form. Fill it out as completely as possible and be sure to sign and date it. There is currently no fee associated with filing of this paperwork. 

Filing is not mandatory, but in order to receive the exemption, it is necessary to do so. Call us if you have any questions at 616-355-1350, Monday through Friday from 8 a.m. to 5 p.m.

Remember: Tax Bill = (Taxable Value of Your Property / 1,000) x Millage Rate

Example

Using the 2011 tax rate for Ottawa County, Holland School District:

• Taxable Value = 55,000
• Tax Rate = 57.2399 Mills for Non-Principal Residence
• Tax Rate with Principal Residence Exemption = 39.2399 (18-Mill Reduction Due to Principal Residence Exemption (PRE))

Tax Bills

• Tax Bill = $55,000 / 1,000 = 55 x 57.2399 = Approximately $3,148
• Tax Bill with PRE Exemption = $55,000 / 1,000 = 55 x 39.2399 = Approximately $2,158

The Principal Residence Exemption tax savings in this sample is $990.

The Principal Residence Exemption is rescinded (removed) from a property when it is no longer occupied as your principal residence. This exemption will be removed December 31st of the year you rescind the exemption. Once applied for and accepted, your principal residence exemption will remain on your property year after year. In order to remove it, you need to file the rescind form. This should be done if you:

• Sell your home. The new owner is responsible for filing a principle residence exemption if necessary, once ownership has transferred.
• Move and decide to claim principal residency on another home (for example, if you own more than one home and decide to move to the other home as your principle residence).
• No longer occupy the home as your principle residence for other reasons (move in to nursing home, use it as a rental house, etc).

Individual requests for property reviews are scheduled throughout the year, upon request by the owner. A review of your assessment can be completed by physically inspecting your property to ensure that all of the information is correct. This also includes comparing your property to similar properties. The goal of a property review is to ensure your property's market value is fair and equitable.

If you are still not satisfied with your assessment upon receipt of your February assessment notice, you will need to schedule an appointment to meet with our March Board of Review. The Board of Review meets during the first week in March, beginning that first Tuesday. By law, the March Board of Review is the annual cut-off to contest your property assessment. If you fail to schedule a meeting for the March Board of Review, you will miss your opportunity to protest your property tax assessment for that year.

The True Cash Value of your property is the same as the market value. It is what your home is worth on the open market. The Assessed Value of your home is 50% of the true cash value. If the True Cash Value of your home is $120,000, the Assessed Value would be $60,000. The State Equalized Value, or SEV, is typically the same as the assessed value. 

In some cases, it may be slightly different due to an Equalization factor, or multiplier, which the County or State may impose to "equalize" the assessments. This is based on studies performed on the sales of various properties in different neighborhoods, which may indicate that assessments need to be adjusted accordingly. For more information, see Ottawa County Equalization's website. 

Taxable Value

Your State Equalized Value sets the basis (see uncapping section) for determining your Taxable Value, which ultimately determines your taxes:

• (Taxable Value / 1,000) x Millage Rate = Your Tax Bill

Your property's taxable value can not increase more than 5% or the rate of inflation each year (see uncapping section).

It is extremely common that your taxes will be greater than they were for the previous owner. Your property taxes are based on your taxable value and the millage rate:

• (Taxable Value / 1,000) x Millage Rate = Tax Bill

Uncapping

Based on Michigan State Law (P.A. 415 of 1994, more commonly referred to as "Proposal A"), the year following the sale of a property, the taxable value of the property is "uncapped." Uncapping means that the taxable value is made the same as the assessed value due to the sale of the property (see assessing terms above if necessary). Proposal A (P.A. 415 of 1994) established the concept of a taxable value which can only go up by the rate of inflation or 5%, whichever is less. This assumes there are no major additions or demolitions on the property which would affect its value. 

If you add to the value of your property, your taxable value will increase. Think of a vacant piece of property that, a year later, has a house built on it. The value has obviously increased, and thus the taxable value and taxes increase as well.

Cap/Limit

Proposal A essentially set a cap, or limit, on the amount your taxable value can go up annually. Since taxable value determines your tax bill, it limits the amount your tax bill can increase every year ("the rate of inflation or 5%, whichever is less"). Prior to this, as taxes were based on State Equalized Value (typically the same as the assessed value), it was not uncommon for a property owner's tax bill to increase by 10% or more in one year. Proposal A set the cap, or limit, so that drastic increases could not occur and, in turn, the fluctuation of tax bills was not extreme, if millage rates remain constant.

Assessed vs. Taxable Values

The key to remember is that the assessed value changes at the rate the real estate market changes, but the taxable value can only change at the rate of inflation (or 5%, whichever is less). Over time, it is common for a gap to be created between the assessed and taxable values. For example, if assessments go up by 5% every year but inflation is only 3%, it does not take long for that gap between the two to increase. However, the year following the sale of the property, the taxable value is uncapped to become the same as the assessed, and the process begins again.

It is important to note: The taxable value can never be greater than the State Equalized Value (SEV).