How are property taxes assessed in Michigan?
The state of Michigan allows cities and counties to collect taxes on property owned by residents in their area. Property taxes pay for municipal expenses such as schools, libraries, parks and public safety. Along with a federal income tax deduction, some taxpayers are eligible for a state income tax credit based on the amount of property taxes assessed on their home.State Equalized ValueThe state equalized value, or SEV, is set at 50 percent of the property’s market value. The SEV is reviewed annually and adjusted if necessary.Taxable ValueProperty taxes are calculated based on the property’s taxable value. On new purchases, the taxable value is equal to the SEV. Over time, the SEV will usually increase faster than the taxable value, due to a cap on taxable value increases.Proposal AIn 1994, Michigan voters passed Proposal A, which capped the annual increases on taxable value. The taxable value can only increase by the current inflation rate or 5 percent, whichever is lower. In additio
