Memo 1058, ( March 2001 ) 8 pages
The Growing Difference Between State Equalized Value and Taxable Value in Michigan
Proposal A of 1994 superimposed upon the property assessment system already in place, a modified acquisition value method of determining taxable value. Instead of applying the tax rate to annual assessments of property at 50 percent of true cash value, commonly referred to as state equalized value, it is applied to taxable value, in which increases on individual parcels of property that were not acquired during the tax year are limited to the lesser of five percent or inflation. The property assessment as of December 31, 1999, for taxes levied in 2000, marks the sixth year of operating under this system, providing an opportunity to examine the impact it has had on government finances and on providing relief to taxpayers.