Tax Rate Q&A


Question: Who pays property taxes?
Answer: All owners of real and personal property in the city pay property taxes. Real property represents land and buildings. Personal property represents the furniture, fixtures, and equipment of businesses in East Lansing.

Question: How are property taxes calculated?
Answer: Property taxes are calculated by multiplying two factors- the taxable value of the property and the millage rate.

Question: What is the taxable value?
Answer: The taxable value of a property is determined by the Assessor's Office. It basically represents 50% of the true market value of the property. Thus, a house in East Lansing which sells for a market price of $150,000 would have a taxable value of $75,000. Each year, the Assessor reassesses property in the city. Under Proposal A approved by the voters in November 1994, the taxable value of a property cannot increase faster than 5% or inflation, whichever is LESS, until such time as the property sells.

Question: What is the millage rate?
Answer: Each governing body that levies property taxes sets its own millage rate annually. Usually, a city charter or a vote of the electorate has determined the maximum number of mills each governing body can levy. A mill represents $1 per $1000 of taxable value.

Question: Who does the City of East Lansing collect property taxes for?
Answer: The City collects property taxes in the summer (July 1) and winter (December 1). The taxes are collected for the operation of the city itself, as well as East Lansing School District, Lansing School District, Haslett School District, Bath School District, Ingham Intermediate School District, Clinton County Regional Educatoin Service Agency, Lansing Community College, Capital Area Transportation Authority (CATA), Ingham County, Clinton County and the State of Michigan Education Millage. The city millage rate is established by City Council with limitations established by the city charter. The boards of the other jurisdictions establish their own millage rate. Each year the millage rate changes depending on the taxing authority’s budget needs. See the tax Rate Tables

Question: What would the property taxes be for an owner occupied home that was valued at $200,000?
Answer: The worst case scenario would be that the taxable value was set at 50% of the market value, or $100,000 for a $200,000 home. Taxes for 2004 would have been $5569.56. The calculation formula is:
      (Taxable Value x Millage Rate) x 1% administration fee = TAXES or
      ($100,000 x 55.1442) x 1%=$5,569.56

Question: What is the difference in taxes if a property does not have a Principal Residence Exemption?
Answer: A Principal Residence Exemption allows for 18 mills of State School Tax to be exempted from taxation. The amount actually levied may be slightly less depending on rollback formulas. Using the above example, in 2004 a non-homestead property would have $7,292 in taxes. The millage rate would have been 72.197.

Question: When are taxes due?
Answer: Summer taxes due July 1st annually are payable without penalty if paid by August 31st. Winter taxes, due Dec. 1st, are payable without penalty if paid by Feb. 14th, annually.

Question: Who do I call if I have a question about taxes.
Answer: It depends on what the question is. If the question is about how value determination, principal residence exemptions or ownership call the Assessor's Office at (517) 319-6880.  If it is a question about the tax amount and if it has been paid Call THE TREASURERS OFFICE at (517) 319 6826.