What is True Cash Value (TCV)?
True cash value is defined by statute as "the usual selling price of a property...being the price that could be obtained for the property at private sale, and not at an auction, or at a forced sale".
Also, the purchase price paid in a sale of property is not the presumptive true cash value of the property. In determining the true cash value of transferred property, an assessing office shall assess that property using the same valuation method used to value all other property of the same classification in the assessing jurisdiction.
What is Assessed Value (AV)?
Assessed Value (AV) is 50% of the usual selling price or true cash value of your property.
What is State Equalized Value (SEV)?
State Equalized Value (SEV) is the assessed value as finalized by the County and State Equalization Process. Typically this number is the same as the Assessed Value.
What is Capped Value (CV)?
Capped Value (CV) is the prior year's Taxable Value minus any physical losses (demolition of a structure, etc.) multiplied by the Consumer Price Index (CPI) for the current year, plus any physical additions (new construction, etc.)
What is Consumer Price Index (CPI)?
The CPI is determined each year by the State of Michigan. Every municipality in the State is required to use the CPI to calculate the capped vale. The CPI is not subject to appeal. For an example to calculate your 2021 taxable value, (if there was not a transfer of ownership in 2020 or any additions to the property) multiply the 2020 taxable value by 1.014 (2021 CPI) to arrive at your 2021 TV.
What is Taxable Value (TV)?
This will be the Assessed Value or Capped Value, whichever is less. This is what your taxes are based on. In most circumstances, the TV is not subject to appeal.
Proposal A, passed by the voters in March of 1994, drastically changed the property assessment and taxation systems. The purpose of Proposal A was to give homeowners some relief against increased taxes due to the rapidly rising housing market. Prior to Proposal A, taxes were calculated on Assessed Value, since Proposal A, taxes are calculated on Taxable Value.
What is a Principal Residence Exemption? (PRE)?
Principal Residence Exemption exempts a principal residence from the tax levied by a local school district for operating purposes, up to 18 mills.
How do I claim a PRE?
Complete a Principal Residence Exemption Affidavit (Form 2368) and file it with the Assessor's Office. A valid affidavit filed on or before June 1 allows an owner to receive a PRE on the current year summer tax levy and subsequent tax levies so long as it remains the owner's principal residence.
How do I remove (rescind) my PRE?
Within 90 days of when you no longer own or occupy the property as a principal residence, you must complete and file a Request to Rescind Principal Residence Exemption (Form 2602).
What if I miss the June 1 deadline but I moved in prior to June 1?
You may file Form 2368 with the Assessor's Office along with a petition to the July or December Board of Review. The BOR can correct current year and three prior years if necessary.