Assessed Value- The assessed value is determined by a property's market value. Set by the assessor, the assessed value when multiplied by two will give an approximate market value of the property. The assessor is constitutionally required to set the assesses value at 50% of the usual selling price or true cash value of the property.
State Equalized Value (SEV)- SEV is the assessed value that has been adjusted following county and state equalization. The County Board of Commissioners and the Michigan State Tax Commission must review local assessments and adjust (equalize) them if they are above or below the constitutional 50% level of assessment.
Taxable value- A property's taxable value is the value used for determining the property owner's tax liability. Multiplying the taxable value by the local millage rate will determine your tax liability. Taxable value increases from year to year by the rate of inflation or 5%, whichever is lower. Transfers of ownership and improvements to the property will increase the taxable value more than the rate of inflation, but never more than the assessed value.
Michigan law requires each city to include both a SEV and taxable value on its Assessment Roll. The SEV represents 50 percent of true cash value. The taxable value is the amount that the owner will pay taxes on.
The SEV is calculated by sales studies of properties selling in Garden City 24 of the prior 36 months. The taxable value is increased annually by the Consumer Price Index or 5 percent, which ever is less until the property ownership is transferred, and then the taxable value is uncapped.