Michigan MCAO Certification key terms

A Latin phrase meaning "according to value." Michigan property taxes are levied as a percentage of each parcel's taxable value rather than as a flat charge per parcel or per person.

The value figure to which millage rates are applied. It generally equals the prior year's taxable value, adjusted by the inflation rate multiplier, plus the value of new construction and improvements, minus losses.

A factor published annually by the State Tax Commission that adjusts each county's locally assessed values so aggregate assessments equal 50 percent of true cash value statewide. Multiplying assessed value by the state equalizer yields equalized value.

The relationship between assessed value and true cash value for a property or group of properties. Michigan statute requires assessments at 50 percent of true cash value, so the target ratio is 0.50.

Michigan's statutory standard of value: the usual selling price at the place where the property is located, at the time of assessment, on the open market between a willing buyer and willing seller, neither under duress.

A calculated limit on a parcel's taxable value, equal to last year's taxable value multiplied by the lesser of the inflation rate multiplier or 1.05, plus additions and minus losses. Taxable value cannot exceed assessed value.

The annual percentage, published by the State Tax Commission and capped at 1.05, used to adjust capped value for the coming year. It is based on the national Consumer Price Index and applies only to the capped value calculation.

An event, such as a sale, that ends the capped value limitation for a parcel. The following year's taxable value is uncapped and set equal to assessed value, producing a "pop up" in taxes.

A Michigan exemption that removes a portion of school operating millage from a property owner's primary home. The owner must occupy the home as a principal residence and file the required affidavit with the local assessor by the statutory deadline.

The statutory category assigned to each parcel, such as residential, commercial, industrial, agricultural, developmental, timber-cutover, or exempt. Classification determines which millage rates apply and how equalization studies group parcels.

Whether a parcel is subject to property tax for the current year and under what conditions. It reflects classification, exemption status, and any pending board or tribunal decisions affecting the parcel.

A statutory or constitutional release of property from taxation, in whole or in part. Examples include charitable, religious, educational, and governmental exemptions, each with specific ownership and use requirements the claimant must prove.

A temporary reduction or cancellation of property taxes for a person unable to pay due to poverty, granted by the local board of review or the July board. Applicants must file the prescribed form and disclose income and assets.

The local body that hears property assessment appeals, corrects errors, and acts on exemptions and poverty requests. It meets in March, with additional July and December sessions for limited statutory purposes.

The annual principal session at which the board hears valuation and classification appeals, reviews the assessment roll, and may increase or decrease assessments. Written notice of its decisions must be sent to affected property owners.

A summer session limited to correcting clerical errors, mutual mistakes of fact, and certain exemption and principal residence issues. It cannot hear general valuation appeals, which belong to the March board or the Tax Tribunal.

The official record prepared by the assessor listing every parcel, its owner, classification, assessed value, taxable value, and exemption status. The board of review certifies it before county equalization and tax roll preparation.

The document produced after equalization and millage adoption that shows each parcel's taxable value, the millage rates applied, and the resulting tax due. It is the basis for collection by the local treasurer.

Fifty percent of a parcel's true cash value, as determined by the assessor. Assessed value is the figure the board of review and Tax Tribunal review, and it caps how high taxable value may rise.

A parcel's or jurisdiction's assessed value multiplied by the state equalizer, expressing value at a uniform 50 percent level for comparison across counties and for apportioning levies such as county and school debt millage.

The county's annual review of local assessment rolls to test whether values reflect 50 percent of true cash value. The county board may raise or lower the aggregate roll and certifies equalization to the state.

A statistical analysis of arm's-length property transfers used to measure assessment levels and trends. Assessors and equalization officials select qualified sales over a defined study period and compare selling prices to assessed values.

A transfer between unrelated parties, each acting in its own interest, with no unusual pressure and with the property exposed to the market. Only such sales are typically usable in a sales study.

The tax rate expressed in mills, where one mill equals one dollar of tax per thousand dollars of taxable value. A levy of 40 mills on a $100,000 taxable value produces $4,000 of tax.

A Michigan constitutional amendment that limits total property tax revenue growth from existing property to the inflation rate unless voters approve more. When the limit is exceeded, millage rates are reduced through a rollback.

A statutory process requiring local units that propose levying more than the Headlee-reduced maximum rate to hold a public hearing and adopt a resolution of intent. It applies to certain charter and statutory local levies.

Constitutional and statutory caps on property tax rates and revenue growth, including charter rate limits and the Headlee rollback. These provisions protect taxpayers from increases beyond voter-approved or inflation-indexed levels.

A valuation method that estimates value by analyzing prices of comparable properties and adjusting for differences in location, size, condition, and features. It is the primary approach for residential property in mass appraisal.

A valuation method that estimates value as the cost to replace or reproduce improvements, less depreciation, plus land value. It is useful for new or special-purpose property with few comparable sales.

A valuation method that converts expected net operating income into value using a capitalization rate or discounted cash flow analysis. It is commonly applied to commercial and investment property in mass appraisal.

The systematic valuation of many properties as of a common date using standardized data, models, and statistical testing. Michigan assessors must reappraise property annually and support values with sales and cost data.

The reasonably probable, legally permissible, physically possible, and financially feasible use that produces the greatest property value. It frames the valuation analysis for every approach to value.

A written request filed with the board of review or Tax Tribunal asking for a change in assessed value, taxable value, classification, or exemption. It must be timely filed and state the basis for the requested relief.

The state administrative tribunal with jurisdiction over property tax appeals, including valuation, classification, and exemption disputes. It hears cases after the local board of review has acted, subject to filing deadlines.

A mistake in recording or transcribing assessment data, such as a wrong owner name or transposed value, that does not involve judgment about value. Boards may correct such errors in limited sessions.

An error shared by the assessor and taxpayer about a factual matter affecting the assessment, such as an omitted structure. It may be corrected by the board in a limited session when both parties agree.

A property tax payment not received by the statutory due date. Delinquent amounts are turned over for county administration and may be subject to interest, penalties, and eventual tax foreclosure.

The constitutional requirement that property of the same class be assessed and taxed at the same rate and basis. It underpins the 50 percent assessment standard and equalization of local rolls.

Professional standards requiring assessors to be objective, confidential with taxpayer data, free from conflicts of interest, and compliant with certification and continuing education rules. Ethical conduct preserves public trust in the assessment system.

Required professional training Michigan assessors must complete to maintain certification at their level. Credits cover valuation, law, administration, and ethics, and records must be retained for state audit.