Buyer's Guide
Lansing Area Real Estate
Property Tax and Assessment Explained
Your property tax is based on the Taxable Value of your home and the the sum of all tax rates levied by the city, village, or township in which you reside. These will include taxes for the county, the local school district,
the intermediated school district, the Community College and any special assessment that may apply to your community or neighborhood.

The State of Michigan allows a reduced Homestead tax rate for a property that is the primary residence of
the owner. Second homes, commercial and rental properties are considered Non-homestead and are taxed at
a higher rate.
The true market value of property can only be determined upon a sale.
Thus, governments use a method known as assessment to assign value
to a property. The Assessor will estimate a property's value base upon
the sale of similar homes in the property's market area.

State Equalized Value (SEV)
Once an Assessor has estimated the market value of a property, he is required to record 50% of that amount as the State Equalized Value.

A home's State Equalized Value will change annually to reflect fluctuation
of local property values. It will not increase radically unless major construction improves the property, or the property changes hands.

Capped Value and Taxable Value (TV)
The Assessor annually calculates the Capped and Taxable Value of each property. The Capped Value is calculated by multiplying the previous year's Taxable Value by the Consumer Price Index (CPI), but not to exceed 5%. Additions, such as a new four season room, are factored in. The result is
the Capped Value for the current year.

The lesser of the State Equalized Value and the Capped Value become the Taxable Value.

The "capping" process will continue annually until ownership is transferred. When a change of ownership occurs, the next Taxable Value will be based
on the State Equalized Value.

The actual sales price of a property is not the sole basis of the new State Equalized Value for that property.



Assessor's opinion of the true 
  market value of a home based on
  comparable properties in the
  market area.
 State Equalized Value (SEV)
 50% of the appraised market value.
 Capped Value
Last year's taxable value increased 
 by the amount of the Consumer
 Price Index (maximum of 5%) plus
 any construction changes.
 Taxable Value (TV)
 The lesser of the State Equalize 
 Value and Capped Value.

 Taxable Value is used for the 
 calculation of property tax.



Lansing, East Lansing, Okemos, Haslett, Williamston, DeWitt, Bath, Perry, Holt, Mason, Leslie, Dansville
Stockbridge,  Webberville, Grand Ledge, Charlotte, Olivet, Potterville, Eaton Rapids, St. Johns, Laingsburg, Owosso, Portland

1651 West Lake Lansing Road, East Lansing, Michigan 48823 

Office:   517-324-3200
Fax:   517-324-3201
Toll Free:   877-326-3772


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