Residential Property Trends

As the Treasurer of Waterford, I have included the charts below taken from the 2015 budget to give you an idea of the Residential Average Taxable Values by Year, the Taxables Values % change by Year and the average Waterford Township Tax Bill by Year. 

Residential Average Taxable Values by Year

2015 Budget - Average Residential Taxable Value

Residential Average Taxable Values % Change by Year

2015 Budget - Percentage Change by Year
 
*Taxable Value Discussion: Waterford like most communities in the State and Country has experienced significant reductions in the taxable values of homes and businesses. Since the single largest source of Township Revenue ‘Property Tax’ is based on the taxable assessed value, this has caused a corresponding unprecedented drop in revenues in the past few years. As you can see from the graphs above the average residential parcel taxable value in 2014 was lower than in the year 2000. 

Average Residential Waterford Township Tax Bills by Year

2015 Budget - Average Residential Property Tax Bill

*Property Tax Bill Discussion: Due to the large reductions in property values residents have experienced a large sustained reduction in their property tax bills. The December-2014 Average Residential Property Tax Bill is at the same nominal level as the December-2001/2002 Property Tax Bill.

When adjusted for inflation or held in ‘Constant 1997 Dollars,’ the 2014 Tax Bill adjusted for inflation is $387.00. That is to say, $574.00 (the Ave. 2014 tax bill) is 32% less of an impact than $387.00 was in 1997. Or, when adjusting for inflation taxes are lower now than in many years.

Please remember that the Winter Tax Bill is what goes to the Township. The exception is the Oakland County Parks, Huron Parks, Detroit Zoo and Art Institute, which appear on the Winter Tax Statements but are disbursed to those entities by the Township.

The Summer Tax Bill is primarily the Waterford School District. Additionally, Oakland Community College, Oakland Intermediate Schools, Oakland County Operating, and State Education Tax are included in the Summer Tax Bills. While Waterford Township bills for all these other local entities it does not keep all of the local property tax revenues. The Township only retains its portion of property taxes that are billed and collected on the Winter Tax Statements. The Township does not
retain any taxes from the summer tax statements.

Please remember that the Headlee Amendment will dampen any potential future increase in tax revenues the Township will see. The Headlee Amendment permits taxable values to rise by the Rate of Inflation or 5% whichever is lower. There is no control mechanism for declining property values. This is to say, if property values fall 17% like they did in 2010, then the 17% decline figure is what is used for taxable values. Property Taxes are the Township’s largest source of revenue.