True Cash Value (TCV) is also known as Market Value. It is the usual selling price negotiated between a willing seller and a knowledgeable buyer as unrelated parties and without duress.
Assessed Value - is approximately 50% of your Property’s True Cash Value. The Assessed Value can increase or decrease annually based on the real estate market.
State Equalized Value (SEV)-is the Assessed Value after the assessment roll has been reviewed by the County and State. The County and State ensure uniformity of Assessed Values to be at 50% of the Market Value.
Capped Value- The limit on the amount of the Taxable Value on a property. This value considers the prior year’s taxable value, the rate of inflation and any losses or additions to a property.
Capped Value Formula= (Previous Year’s Taxable Value-Losses) x Inflation Rate Multiplier (CPI) + Additions.
Taxable Value-Is the lesser of the Assessed Value and the Capped Value. It is always the Assessed Value the year after a nonexempt transfer of ownership.
Classification-Categorizes your property by type of use. This may be different than the zoning of a property.
Inflation Rate Multiplier (IRM)-Is a statutory required calculation by the State of Michigan which is calculated using the monthly values of the US consumer price index. (CPI)
Property Tax Calculation=Taxable Value x Millage Rate/1000.
Millage Rate-The rate of taxation approved by voters of a particular District, City, State or County.
Transfer of Ownership-When a change of ownership of a property occurs. This can be done by deed or land contract.
Uncapping-When the Taxable Value is set equal to the Assessed Value due to a transfer of ownership on a property.
Principal Residence Exemption (PRE)-An exemption from a portion of the School Operating Tax if you own and occupy a home as your principal residence. Formerly known as Homestead. This exemption must be claimed in writing by filing form 2368 Homeowners Principal Residence Exemption Affidavit.