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Frequently Asked Questions

​Why did my assessment and taxable value increase, nothing new was done to my property OR why did my assessed value decrease but my taxable value still increase?    

Assessments are required by law to be set annually, done by mass appraisal at an estimated 50% of true cash/market value, which may increase or decrease based on market studies. Taxable Value will increase by the rate of inflation or 5%, whichever is less, each year for every property owner in the state of Michigan.

Why did my taxable value increase by more than the rate of inflation?

If property had a transfer of ownership the prior year, the taxable value will "uncap" to the assessed value OR if the property had new construction or missing improvements. (50% of the new value will be added to the taxable value)

​Why is my neighbor paying half the taxes that I am when their house is twice as big?   

Proposal A was passed by voters in 1994 which put a "cap" of properties taxable values. This limited property tax growth to the rate of inflation and meant the longer a person owns a property, the possible bigger difference there could be in their assessed vs taxable value. Taxable value is limited to the rate of inflation (new construction) but the assessed value is required by law to follow the real estate market.

Minimalist Interior Design

Frequently Asked Questions

What is Taxable Value?

Taxable Value is the value that is used to calculate Property Taxes. Taxable Value

will increase (rarely decrease) by the CPI or 5%, whichever is less. UNLESS the current years Assessed Value is lower than last years Taxable Value. If the current Assessed Value is lower than last years Taxable Value, then the current years Taxable Value will be the same as the current year Assessed Value.  OR if there are any improvements that have been removed from the property. (ex. pole building) 

What is Assessed Value?

Assessed Value is the annual 50% estimation of the market value which is based on a combination of actual real estate market sales, building depreciation, inflation rates and local building cost factors.

The Assessed Value (AV) must be re-established annually for all properties using the mass appraisal process. A properties value is set based on how the property was December 31st the prior year.

What is the State Equalization Value (SEV)?

 If the unit has its assessed values at approximately 50% of the estimated market value the SEV is typically the same as the assessed value

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It is important to note that a property does not uncap to the selling price of the property but to the AV/SEV of that property the year following the transfer of ownership.

Actual Sales price DOES NOT equal the True Cash Value Actual Sales price DOES NOT equal the True Cash Value

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