Township Departments
Treasurer's Department - Changes In Property Tax Collection

Dear Taxpayer:

As a service to residents I would like to make you aware of a recent change in the property tax collection process, which will impact all future property tax bills. The State of Michigan passed Public act 243 of 2002, which requires the State Education Tax (SET) on all property in the state to be collected on a summer property tax bill. As a result of this law, all taxpayers will be receiving a summer property tax bill every year starting in July 2003.

The SET is the 6-mill tax that was created in 1994 as part of Proposal A. The tax, while collected locally, is actually a state tax used to support all school systems in the state. For 2003 only, the tax rate will be reduced from 6-mills to 5-mills. In 2004 the rate will return to the usual 6-mill rate. While the SET will be paid in the summer, the early collection of the SET will not change the overall amount of property taxes paid each year. Beginning in 2003, the SET will not be collected on the December winter tax bill as it has been in the past.

Summer tax bills are sent out on July 1st and the bill must be paid by September 14th in order to avoid any interest penalty. Select properties may defer payment of the tax until the time that winter taxes are due.

• The homestead property of persons 62 years of age or older or the surviving spouse of a person who was 62 or older at death, with a household income below $25,000 are eligible for apply for the deferral. (click here for deferral form)

• Persons with a disability that allows them to quality for an extra personal exemption on the state income tax form are also eligible for the deferral.

• Property that is classified or used as agricultural property may quality if the gross receipts of the farming operation are not less than the household income of the owner.

Individuals who meet the above criteria for deferral must complete a form available through my office or in our Web-Site in order to receive the deferral. The form must be completed each year in order to have taxes deferred without penalty in the given year. The form must be filed with my office by September 14th to receive the deferral.

I appreciate your understanding regarding this change in state law.

Sincerely,

Elise A. Miller, Treasurer
Charter Township of Chesterfield