valuation

Proposal A and Uncapping

Michigan's 1994 constitutional amendment limiting yearly increases in a property's taxable value to the lesser of 5% or inflation while ownership does not change. Taxable value is the lower of the state equalized value (SEV, 50% of true cash value) or the capped value. When ownership transfers, the cap comes off: in the year after the transfer, taxable value resets to that year's SEV, not to the purchase price. The buyer must file a Property Transfer Affidavit with the assessor within 45 days.