TV (TAXABL VALUE)When you buy a house, the next May the taxable value resets to equal the SEV. If you buy an Ann Arbor home in Sept. The current taxable value is 100,000 and the SEV is $150,000. Taxes are $2000. So next year at the beginning of May the SEV and taxable value will both become $150,000 (unless the city assessor raised the SEV). The State equalized value and taxable value becomes the same number. So in this example the taxes would go up to $3000 the following year.
So when you look at a property tax statement the main number you want to look at as a homeowner is the TAXABLE VALUE. That is the number you times by the millage rate to get the Michigan property number you owe.
TAXABLE VALUE X MILLAGE RATE = PROPERTY TAX OWED
Then after the first year taxable value resets the taxable value will go up the lesser of 5% or rate of inflation. But Taxable value can go down if SEV goes down to below taxable value or equal to taxable value. This can be complicated, so make sure you research your situation.
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