Assessed Value – The assessed value is one-half of the estimated fair market value. This is calculated by the Township’s assessing department. The Michigan State constitution requires that the assessed value be set at this level.

County Equalized Value -- The assessed value (as determined by the local assessing department) is reviewed by the county equalization department. The equalization department may add to, subtract from, or approve it as submitted. Upon their action, it becomes the county equalized value.

State Equalized Value (the SEV) -- The county equalized value is then reviewed by the Michigan State Tax Commission. The Tax Commission may add to, subtract from, or approve it as submitted. Upon their action, it becomes the State Equalized Value.

Taxable Value -- This is the "value used" times the "tax mill rate", and this produces the tax amount. The taxable value was created upon the passage of Proposal A, by the electorate in 1994. The Taxable Value is the lower of the State Equalized Value or the Capped Value.

Capped Value -- The taxable value can increase from year to year by 5.0% or by the amount of the consumer price index, whichever is less. Additions or losses to the property are also taken into consideration. The formula goes like this: the previous taxable value, minus losses, times 1.05 (or times the consumer price index, whichever is less) plus any additions. This equals the Capped Value. A property remains "Capped" until it is transferred to another owner. Upon transfer, the property increases to the assessed value placed on the property by the Assessor, the year following the transfer.