Your tax bill is calculated using TAXABLE VALUE not ASSESSED VALUE. Voters, in 1994, approved Proposal A which stated that your Taxable Value can only increase by the Consumers Price Index (CPI) or 5% whichever is less. For 2017 your Taxable Value may increase by a maximum of 0.3%. This assumes no new construction or improvements to your property or transfer of ownership has occurred. Your taxable value can NEVER be more than your assessed value. This inflation rate is determined by the Michigan State Tax Commission and is used statewide. The following excerpt from the State Tax Commission Bulletin No. 11 of 2016 describes how this is calculated:
Values are for the United States Consumers Price Index for all urban consumers as defined and officially reported by the United States Department of Labor, Bureau of Labor Statistics
1. The 12 monthly values of October 2014 through September 2015 are averaged.
2. The 12 monthly values of October 2015 through September 2016 are averaged.
3. The ratio is calculated by dividing the average of October 2015â€September 2016 by the average of October 2014â€September 2015 numbers
Yes.
The Taxable Value is a calculated number based on the previous year’s Taxable Value. The CPI change for the current year is multiplied by your previous year Taxable Value number plus any additions to your property to arrive at the new Taxable Value. The Assessed Value number however will mirror 50% of market value and unless there has been a transfer in ownership, there is no correlation of this number to your Taxable Value. However, your Taxable Value can NEVER be more than your Assessed Value.
I just purchased a new home. What paperwork should I file to ensure I can claim it as my principle residence?
Many times this paperwork will be handeled at closing for your new home. However, the paperwork is also available here.
To rescind a personal residence exemption, use this form.
