Taxable Value

In 1994, all properties became “capped” and the SEV then became the new Taxable Value.  From that point forward, Taxable Value could increase in the following three ways:

  1. Transfer of Ownership
    When a transfer of ownership takes place on a property, the Taxable Value is uncapped to the Assessed Value for the following year.  From that point forward, the Taxable Value is capped until the next property transfer.
  2. Physical Changes to the Property
    Any change in Assessed Value due to a physical change will also change the Taxable Value beyond the CPI increase.  Any loss in value will be subtracted and any new value will be added after applying the Inflation Rate Multiplier (CPI).  All assessments are based on what is physically on the property as of each December 31.  Most maintenance items such as roofs, siding, windows, etc., are not considered as a physical addition to the property.
  1. Inflation Rate Multiplier (CPI)
    Every year the State of Michigan calculates the Inflation Rate Multiplier (CPI).  The multiplier is calculated by statute, on the Consumer Price Index (CPI), as measured by the Federal Bureau of Labor Statistics and is based on a two-year average of the consumer price index based on the state fiscal year.  All property in Michigan will have an average increase based on the Inflation Rate Multiplier or 5% (whichever is lower).  The 2017 Inflation Rate Multiplier (CPI) is 1.009.