Taxable Value Calculation

Calculating the taxable value requires eight steps to be sure the taxable value is legal and correct:

  1. Determine taxability
  2. Identify the owner
  3. Describe the property accurately
  4. Determine the "situs" (location of the property
  5. Value the property
  6. Determine assessed value (50% of true cash value)
  7. Determine capped value (Proposal A)
  8. Determine taxable value (Proposal A)

True Cash Value

In Michigan, the definition of true cash value is: “…the usual selling price at the place where the property to which the term is applied shall be at the time of the assessment, being the price which could be obtained therefore at private sale, and not at forced or auction sale. Any sale or other disposition by the state or any agency or political subdivision thereof heretofore or hereafter made of lands acquired for delinquent taxes or any appraisal made in connection therewith shall not be considered as controlling evidence of true cash value for assessment purposes. In determining the value the assessor shall also consider the advantages and disadvantages of location, quality of soil, zoning, existing use, and present economic income of structures, quality and value of standing timber, water power and privileges, mines, minerals, quarries or other valuable deposits known to be therein and their value.”

Property Records

Maintaining accurate property record cards is of primary importance.  Assessors must have a system in place to keep track of changes to every parcel.