One such change is the "assessment cap". The language in Proposal A stated that, starting in 1995, the taxable assessment can be increased only by the amount of the consumer price index (CPI) or 5%, whichever is less. However, other laws still require that the State Equalized Value (SEV) is to be 50% of the current market value. Since 1982, the SEV and assessed value have been virtually the same. The capped value and the SEV could be totally different.
As a result, there will be three different "values" recorded for each property: the SEV, the capped value and the taxable value. The property taxes will be calculated on the TAXABLE VALUE.
Starting 1995, the Assessor will still be required to estimate the market value of every property and record 50% of that as the SEV. In addition, the Assessor will also be required to multiply individually each 1994 assessment by the CPI to calculate each individual capped value. The lesser of the two will be the 1995 taxable value for that property Structural items not previously assessed, for example new construction, are to be added to the new values.
With this new system, in most cases, a property's taxable value will not be increased more than the previous years taxable value times the CPI. This "capping" process will continue annually until the ownership is transferred.
Forms in Adobe Acrobat format are available from the state, Click Here --->if you don't have Acrobat reader installed on your system. Click Here to go to the state web site for downloading form L-4260 Property Transfer Affidavit.
Also Click Here to download and view the form 2368HOMESTEAD EXEMPTION AFFIDAVIT
Assessors desk Phone 734-287-7116
Contact via Email : email@example.com.
When a transfer of ownership occurs, the next taxable value will be based on the SEV that has been calculated annually. New legislation state that the actual sales price must not be the sole basis of the new SEV for that property.
STATE EQUALIZED VALUE (SEV) = Half of the appraised market value.
CAPPED VALUE (CV)= Last years taxable value increased by the amount of the Consumer Price Index (or 5%, whichever is less), plus construction changes.
TAXABLE VALUE (TV) = The lesser of the SEV and the CV. The taxable value will be used for the calculation of property taxes.