Ways Assessments Can Change
There are several ways that assessments can change:
- The assessor utilizes various sales studies to adjust the taxable value every year. This provides uniform assessments by making each property reflect the marketplace for similar properties that have been sold throughout the previous year. On-site appraisals, physical condition, and other factors may also affect appraisal amounts.
- Individual homeowners who disagree with their assessments may appeal to the Board of Review. Call the city assessor at 248-858-0776 for information.
State Equalized Value
The State Equalized Value (SEV) and market value of properties always change along with the market for property in a given area. The taxable value of property is usually lower than the SEV, because of the cap on the growth of taxable value, which is a result of the passage of Proposal A by the voters of Michigan in 1994.
Proposal A limits annual increases in taxable value to five percent or the rate of inflation, whichever is less. This limit on taxable value assumes no major changes to the property like new structures or additions, and normally results in the taxable value being significantly lower than the SEV.
Prospective property buyers should be aware that the sale of property brings about the uncapping effect on the taxable value of the property. Then the limit on the growth of taxable value is applied to future increases according to Proposal A, or until there is another sale.