State Equalized Worth (SEV) in Michigan represents roughly 50% of a property’s true money worth, as decided by the native assessor. It’s a essential element within the property tax evaluation course of. The calculation begins with the assessor’s estimation of the market worth of the property. For instance, if an assessor determines a property has a market worth of $200,000, the SEV would ideally be $100,000.
The institution of the SEV is necessary as a result of it ensures truthful and uniform property tax assessments throughout completely different jurisdictions throughout the state. It acts as a baseline for calculating taxable worth, which straight impacts the quantity of property taxes owed. Traditionally, the SEV was established to stop vital discrepancies in property tax burdens between municipalities, selling equitable funding for public providers.