Property Taxes

In Michigan, property taxes are broken into two payments, billed in the summer and the winter. The property assessment is completed annually and includes three steps:

  • The "assessed value" of a property is determined by the local assessment officer and may not exceed 50% of the true cash value (the amount the property would bring on the housing market).
  • The county equalizes the amount to ensure that all property owners in the county pay a fair share of the taxes.
  • The State Tax Commission adjusts the county assessment to bring the value across counties as close to 50% as possible, producing the state equalized value (SEV).

The value found is used to calculate property taxes, with a cap of either the rate of inflation or 5%, whichever is less. When a property is sold the following year's SEV becomes the property's taxable value, which eliminates the cap.

Other important property tax information includes:

The Tim Sova Team is here to help, please contact us today if you have questions about property taxes or any of our real estate services.