![]() central air conditioning, new deck or porch, new bathroom, new basement finish, new square footage, new shed, new garage, etc.Ĭheck the records of the Assessing Office or on the Assessor's website concerning your appraisal to make sure they are correct. You may have added something new to the property which in turn can increase both the assessed and taxable value of the property, i.e. You may not be taking advantage of the Principal Residence/Homestead Exemption.ĥ. Proposal A, which was passed in 1994, places an annual cap on the growth of property tax assessments however, when the home is sold, the cap comes off and the assessment reverts to the State Equalized Value (SEV) of the year following an eligible transfer of ownership.Ĥ. Your tax bill is based on your home's taxable value multiplied by the Millage rate.ģ. Your tax bill includes voter authorized Millage for City, County, State Education, miscellaneous school taxes, and other voter approved Millages. ![]() A millage increase will cause your taxes to increase. An increase in taxable value will result in an increase in your taxes.Ģ. The Taxable Value of a property is adjusted each year based on the Consumer's Price Index (CPI). There are several factors that affect your tax rate:ġ. The year following an eligible transfer of ownership, the SEV of the transferred property set in that year is its Taxable Value. The Capped Value is then compared to the SEV of that property, and the lower of the two will be its Taxable Value upon which taxes are levied. ![]() Assessors are required to annually calculate a Capped Value for each individual parcel of real property. The legislature has defined Taxable Value to be the lesser of SEV or Capped Value. Prior Taxable Value - Taxable Value of Losses * Lesser of 5% or CPI Multiplier + Taxable Value of Additions = Capped ValueĬPI is the Consumer's Price Index (Inflation rate) as calculated by the State of Michigan each fall. The first step in the process of determining Taxable Value is to calculate the Capped Value of every parcel of assessable property using the following formula: The term Taxable Value was used in the 1994 constitutional amendment known as Proposal A to replace SEV in the property tax equation to calculate property tax bills. ![]()
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