Instructions For Form L-4025 (And L-4025 Sev) (Page 2 of 8) in pdf

INSTRUCTIONS FOR FORM L-4025 (AND L-4025 SEV)

It is important to note the special instructions starting on page 7 regarding the

calculation of the “Headlee” and “Truth In Taxation” rollbacks for the NON-

HOMESTEAD AND NON-QUALIFIED AGRICULTURAL GROUP of properties for

local school districts (Please Read Carefully)

STC Form L-4025 is the form used by assessors to report the Taxable Values used in the calculation of

the millage rollbacks required by MCL 211.34d ("Headlee") and by MCL 211.24e ("Truth in Taxation").

The assessing officer shall report the following, BY CLASS, for each taxing jurisdiction which levies a

property tax in his/her city or township:

1. Total 2004 Taxable Value

2. Taxable Value of LOSSES

3. Taxable Value of ADDITIONS

4. Total 2005 Taxable Value

An analysis of each assessment is required to arrive at an accurate tabulation of Taxable Values of

LOSSES and Taxable Values of ADDITIONS, as defined in P.A. 476 of 1996.

FOR REAL AND PERSONAL PROPERTY: (Prepare one form L-4025 for each classification.)

Important Note: The long-standing procedure for calcula ting the "Headlee" Millage Reduction Fraction

for most PERSONAL PROPERTY has changed. This old procedure stated that all changes in taxable

value were to be treated as either additions or losses. This procedure NO LONGER APPLIES. Please

see STC Bulletin 19 of 2002 for a new system which is mandatory in 2005.

ANNEXTIONS: Please see the special instructions regarding annexations contained in the memo to

assessors and equalization directors from Harold Anderson dated February 28, 2002.

ADDITIONS

: ADDITIONS for calculating "Headlee" Millage Rollbacks under MCL 211.34d are

defined in P.A. 476 of 1996 and are explained in STC Bulletin No. 3 of 1995 including its Supplements.

Please also see paragraph G of STC Bulletin 15 of 2002 which addresses the fact that the State

Supreme Court has ruled that an increase in a property’s occupancy rate is not a legal ADDITION.

Please note that the definitions of ADDITIONS herein apply to the calculation of millage rollbacks under

MCL 211.34d ("Headlee") and MCL 211.24e ("Truth in Taxation").

Please note that certain

ADDITIONS for rollback calculations are not ADDITIONS for Capped Valuation calculations. For more

information, please see page 16 of STC Bulletin No. 2 of 1996.

IMPORTANT REMINDER: THE TAXABLE VALUES OF SOME ADDITIONS ARE

REQUIRED TO BE AT 50% OF TRUE CASH VALUE AND SOME MAY BE LESS THAN 50%.

The formulas for calculating some ADDITIONS have changed starting in 1997. Please see STC Bulletin

No. 3 of 1997 for more information.

The following are ADDITIONS for millage rollback calculations:

1. Omitted real property (ADDITION may be less than 50% of True Cash Value).

2. Omitted personal property (ADDITION usually 50% of TCV).

3. New Construction (ADDITION at 50% of True Cash Value).

4. Previously exempt property, but not Poverty or IFT Exemptions (ADDITION at 50% of

TCV).

2005 Forms L-4025, L-4025 SEV, L-4028, L-4028IC

Page 2

March 1, 2005

Instructions For Form L-4025 (And L-4025 Sev) Page 2

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