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1. Who pays property taxes?

Unless a specific exemption applies, 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.

2. How are property taxes calculated?

Property taxes are calculated by multiplying two factors- the taxable value of the property and the millage rate.

3. What is the taxable value?

The taxable value of a property is determined by the Assessor's Office. Under Proposal A, which was approved by voters in 1994, taxable value cannot increase faster than 5% per year or the rate of inflation, whichever is less, until the property transfers ownership. In the year following a transfer of ownership of property, the property's taxable value is half of the property's market value. Physical changes to a property (i.e., new construction) can also result in a property's taxable value increasing faster than the rate of inflation.

4. What is the millage rate?

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.

5. Who does the City of East Lansing collect property taxes for?

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 Education Service Agency, Lansing Community College, Capital Area Transportation Authority (CATA), Capital Region Airport Authority, Ingham County, Clinton County and the State of Michigan (State Education Tax).

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 current Tax Rates.

6. What would the property taxes be for an owner-occupied home that was valued at $200,000?

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. Using the PRE (i.e., principal residence exemption or homestead) millage rate for the East Lansing school district for 2022, taxes would have been $5,553.04. The calculation formula is: Taxable Value x Millage Rate x 1.01 (1% administration fee) = TAXES or $100,000 x 0.0549806 x 1.01 = $5,553.04.

7. What is the difference in taxes if a property does not have a Principal Residence Exemption?

A Principal Residence Exemption allows for up to 18 mills of local school operating taxes to be exempted from taxation. Using the above example, in 2022 a non-homestead property would have been billed $7,298.06 in taxes without administration fee. The millage rate would have been 72.9806 mills (0.0729806).

8. When are taxes due?

Summer taxes are levied July 1 and are payable without penalty if paid by August 31 of that year. Winter taxes are levied December 1 and are payable without penalty if paid by February 14 of the succeeding year.

9. Who do I call if I have a question about taxes?

It depends on what the question is. If the question is about how value is determined, 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 Treasurer's Office at (517) 319-6826.