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Understanding Assessed, Capped, & Taxable Value

Color Logo Charter Township of Ypsilanti A Community of Opportunity

Civic Center w Address

COVID-19 Update: Assessing

Although Ypsilanti Township is open to the public and residents are welcome to come into the Township, for the safety of our residents and continued protection of our workers, Ypsilanti Township Assessing Department will maintain procedures for accepting your Property Transfer Affidavit, Principal Residence Exemption and Rescission of the Principal Residence Exemption through the following methods:

- Mail them to our office:

Ypsilanti Township
Tilden R Stumbo Civic Center
Attn: Assessing Department
7200 S Huron River Dr.
Ypsilanti, MI 48197

- Drop box outside the Civic Center located at the front of the building by the flag pole (checked daily)
- Email to the Assessing Department at

If you would like proof of acceptance for your stamped document, please provide us with an additional copy of the document and a self-addressed envelope and we will send the stamped copy back to you via postal mail.

Ypsilanti Township will continue these processes and all our essential functions as we work to reintegrate staff and resume the normal functions of the Assessment Department. Ypsilanti Township appreciates your patience as we all navigate through these difficult times. If you have any questions regarding these procedures, or any other assessment related issue, please contact our office at: (734) 487-4927.

This describes the different values that the Assessor's Office places on your home each year.

The passage of Proposal A in March of 1994 drastically changed the property assessment and taxation system. Some of the changes are hard to understand. One such change is the “Taxable Value cap.” The language in Proposal A stated that starting in 1995, the Taxable Value can be increased only by the amount of the Consumer Price Index (C.P.I.) or 5% (whichever is less) and for construction changes. However, other laws still require that the State Equalized Value (S.E.V.) is to be 50% of the current market value. The Capped Value and the S.E.V. could be totally different.

As a result, there will be three different “values” recorded for each property: State Equalized Value, Capped Value, and Taxable Value.

 

The Assessor is still required to estimate the market value of every property and record 50% of that as the Assessed Value. That value will eventually be referred to as State Equalized Value. In addition, the Assessor is also required to multiply individually each previous year's Taxable Value by the C.P.I. to calculate each individual Capped Value. The lesser of the Assessed Value and the Capped Value will be the Taxable Value for that property. Structural items not previously assessed, for example, new construction, are also added to Taxable Values.

In most cases, a property's Taxable Value will not be increased more that the previous year’s Taxable Value times the C.P.I. This “capping” process will continue annually until the ownership is transferred.

When a transfer of ownership occurs, the Taxable Value the following year will be based on the State Equalized Value that is calculated annually in the year following the sale.

 

TO SUMMARIZE:

State Equalized Value (S.E.V.)

equals . . .

Half of the Appraised Market Value.

Capped Value

equals . . .

Last year’s Taxable Value increased by the amount of the Consumer Price Index

(with a maximum of 5%), plus construction changes.

Taxable Value

equals . . .

The lesser of the State Equalized and Capped Values. Taxable Value can NOT be higher than the S.E.V. (Assessed Value). Taxable Value can still increase even if Assessed Value decreases as long as Taxable Value does not exceed (is lower than) Assessed Value.

**The Taxable Value will be used for the calculation of property taxes.** 

Charter Township of Ypsilanti  •  7200 S. Huron River Dr. Ypsilanti, Mi 48197  •  (734) 484 - 4700

Mon. - Fri., 8:30am - 4:30pm  •  Closed 12:00pm - 1:00pm daily