What determines the Taxable Value?

On March 15, 1994 Michigan voters approved the constitutional amendment known as Proposal A. The Taxable Value was created as a part of this legislation. Taxable Value, or the figure which millage would be multiplied against, can only increase each year by the rate of inflation or 5%, whichever is lower. The Taxable Value on the property is said to be “Capped” if the property owner has not had any additions or losses on the property or did not purchase it in the preceding year. The legislators who wrote and put Proposal A on the ballot intended to put a cap on the value of the property so that taxpayers wouldn’t be as affected by a robust housing market and a significant increase in valuation. The intention was to tie the increase in valuation to the inflation rate so that it would be more affordable for residents and would benefit those residents who intended to remain at their properties for longer periods of time.

 

Posted in: Assessing, Taxes