What does the SEV and TV mean on homes in Michigan?
Buyers looking at homes for sale in the Ann Arbor MLS, want to know what the SEV and TV mean on the listing tickets.
When the Missy Caulk TEAM works with buys moving into the Ann Arbor Area, we are asked frequently to explain what and how the property taxes are calculated.
SEV is the State Equalized Value, this is reset when you transfer the deed to a new home owner. It is typically at 1/2 the Sales Price of the Home.
TV (Taxable Value) is the what the amount of taxes you pay is based on. In 1994 the State of Michigan changed the way property taxes are calculated based on what is commonly known as Proposal A. According to Proposal A, you can not be accessed each year more than the rate of inflation or a top of 5%.
If you have been a long time home owner in Michigan, the SEV and the TV can look quite different.
At the peak of our market in Ann Arbor the SEV would be much higher than the TV. As a home would sell, the municipalities would reset the SEV to the sale price divided by 2. (usually) Some municipalities would take a look at the overall value of the neighborhood and access you at that amount.
The amount you need to be concerned about as a home buyer in Ann Arbor is the TV as that is what you are paying your taxes on.
The last few year, I noticed across the Washtenaw County area, due to the falling prices of homes in many areas the SEV and the TV were equal on the tax bills.
Up until the last few years, in the Ann Arbor, Washtenaw County area we paid our taxes twice a year. We got a summer tax bill and a winter tax bill. That has slowly been changing as the winter taxes have been slowly been being added to the summer tax bill. That is when the schools take their operating budgets.
The State of Michigan provides a Michigan Property Tax Estimator and it is easy to use. Although it is not 100% accurate it is pretty darn close. You can use it to look at Homestead and Non-Homestead taxes for a home you are buying in Ann Arbor.
Non-Homestead taxes are vacation homes, second homes, investment homes.
Homestead is the prices you pay on your primary residence.You are allowed this on ONE home in Michigan.
This chart is from 2005 but the process is still the same. I know they are confusing when you are looking for a home to buy in Ann Arbor, but anyone on our TEAM explain it.
Chart Courtesy of State of Michigan.
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Missy Caulk & Team can be reached at 734-216-2822 or email: Missy@MissyCaulk.com
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