No. Whether a special use permit is approved by the Township Planning Commission or recommended by the Planning Commission with approval by ...Read More
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True Cash Value and Market Value have been determined by Michigan Courts to be synonymous terms. The tax statute uses the term True Cash Value. True Cash Value means the price a willing buyer and willing seller would agree to through an arms-length transaction of the subject property as of tax day. Tax day is December 31st each year. Assessed Value can be no more than 50% of the True Cash Value (or Market Value). Taxable Value is the value on which property taxes are based after applying a local unit’s millage rate. The Taxable Value cannot be more than the Assessed Value. While Assessed Value has a relationship with True Cash Value (50% of True Cash Value) and can rise or fall each year with increases or decreases in the market, Taxable Value can only rise annually by 5% or the rate of inflation, whichever is less. The Taxable Value only falls, therefore, when the Assessed Value drops below the Taxable Value (since the Taxable Value cannot be higher than the Assessed Value). When a gap is created over time between the Taxable and Assessed values and there is a transfer of property, the Taxable Value is “uncapped” the following year and increases to that of the Assessed Value. Note that there are exceptions to uncapping in certain circumstances. There are also exceptions to the general rules regarding Taxable Value if the property has “additions” or “losses.” If you have specific questions about Assessed Value, Taxable Value, True Cash Value, additions, losses, or uncapping – please feel free to contact us!
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