True Cash Value (TCV) is defined in the General Property Tax Act as “the usual selling price at the place where the property to which the term is applied is at the time of assessment, being the price that could be obtained for the property at private sale, and not at auction sale except as otherwise provided in this section, or at forced sale.”

Assessed Value (AV) is 50% of a parcel’s True Cash Value. Michigan law requires that all property be uniformly assessed at 50% of the usual selling price, or the True Cash Value.

State Equalized Value (SEV) is the Assessed Value after County and State Equalization is completed. The equalization process assures the assessments are uniformly assessed and Assessed Value and State Equalize Value are equal.

Taxable Value (TV) is the lower of a parcel’s State Equalization Value or Capped Value. Under Michigan law, Tax Value cannot increase annually by more than 5% or the rate of inflation, whichever is lower. The Inflation Rate Multiplier is determined by Michigan Law and provided to each municipality by the State Tax Commission. The Taxable Value can be increased when something new is added or if the assessor discovers there is omitted property. Taxable Value can never be higher than State Equalized Value, but it can be lower.

If there has been a transfer of ownership, the taxable value will uncap in the year following the transfer. The taxable value for that year will be set equal to the state equalized value. This may result in the increase of taxes on the parcel.