|How Is Taxable Value
Taxable value, the number upon which your tax bill is calculated, is determined each year by comparing ASSESSED and CAPPED values and choosing the lower of the two. ASSESSED value is the assessorís estimate of 50% of the market value of the property.
CAPPED value is determined from the following formula:
(Prior year taxable value losses) X (1 + (lesser of CPI or
5%)) + additions.
LOSSES, in most cases, are equal to the assessed value of
any new buildings, or portions there of, that were built in the previous year.
CPI is equal to the Consumer Price Index (the inflation
rate) in the State of Michigan in the prior year. This figure is determined by the State Treasury Department.