Instructions For Form L-4025 (And L-4025 Sev) (Page 3 of 8) in pdf

Instructions For Form L-4025 (And L-4025 Sev) Page 3

5. Previously exempt property due to Poverty or IFT Exemptions (ADDITION may be less than

50% of TCV).

6. Replacement construction (ADDITION may be less than 50% of TCV).

7. Remediation of environmental contamination (ADDITION may be less than 50% of TCV).

8. Public Services (for real property only).(ADDITION at 50% of True Cash Value).

NOTE: The following are NOT ADDITIONS for millage rollback calculations:

"Uncapped" Taxable Value

An increase in Taxable Value caused by the "uncapping" of Taxable Value in the year

following a "Transfer of Ownership" is not an ADDITION.

Platting, Splits, or Combinations

An increase in the value of a parcel attributable to platting, splits, or combinations of

parcels is not an ADDITION. It is only when these increases in value are accompanied

by a physical change in the property or by public services (see number 8 above), that

there is likely to be an ADDITION. If so, the ADDITION must fit one or more of the 8

categories of ADDITIONS listed above.

Zoning Change

An increase in the value of a parcel attributable to a change in zoning is not an

ADDITION.

Inflation

An increase in the value of a parcel due to inflation is not an ADDITION as defined by

P.A. 476 of 1996. For example, increased land value because of inflation is not an

ADDITION for "Headlee" or "Truth in Taxation" purposes (although inflationary

increases may be "new" for equalization purposes if the class was not studied by the

equalization department.)

Economic Conditions

An increase in value due to an improvement in economic conditions is not an

ADDITION.

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

Page 3

March 1, 2005

Instructions For Form L-4025 (And L-4025 Sev) Page 3