Frequently Asked Questions

The assessed value of your property reflects an estimate of 50% of your property value. This estimate is based on sales of similar homes within the same or similar neighborhoods. Your assessed value changes to reflect the fluctuation in selling prices of similar homes. Additionally, property improvements may increase your assessed value.

Taxable value is the amount on which a property owner pays property taxes. Taxable value is the lesser of the assessed value or the prior year’s taxable value minus losses, increased by the lesser of 5% or the Consumer Price Index (CPI), plus additions. The Consumer Price Index for 2011 taxable value is 1.7%. A transfer of ownership will change the taxable value to the assessed value in the year following the transfer of ownership. Information about the calculation of the CPI can be found at the Michigan Department of Treasury website.

Losses are the removal of property, such as removal of a garage. An addition includes finishing a basement, building a deck, and other improvements.

Over the years, the majority of property values in the City of Jackson have increased in value greater than the Consumer Price Index (CPI). However, many neighborhoods are now experiencing a decline in the market value. The 1994 constitutional amendment known as “Proposal A” requires that the taxable value increase by the CPI, however, it cannot exceed the assessed value.

Some property owners have a significant difference in the amount of their assessed values and taxable values. Assessed value represents 50% of the estimated property value. Taxable value is a mathematical formula that is based on the preceding year's taxable value increased by the CPI. The CPI is determined for the entire state and applied by each municipality. Taxable value may also increase for physical additions and decrease for physical losses.

The year after you purchase your home or lot, the taxable value is "uncapped" and becomes the same amount as the assessed value for that year only. Each year thereafter, the taxable value is adjusted by the IRM in the same manner as described above.

Proposal A mandates that the taxable value must be adjusted each year by the CPI. The assessed value is adjusted each year based on sales studies. Sales studies are based primarily on bona fide sales of similar homes in similar areas. The sales analysis may indicate that the market value should increase, decrease, or stay the same.

The taxable value cannot exceed the assessed value. For more information and additional details access Understanding Proposal A in a Declining Market (PDF) document (PDF).

For information about The Tax Foreclosure Auction please contact Jackson County Treasurer 120 W Michigan Ave 517-788-4418

Every year, you receive an assessment notice indicating changes in the assessed value and the taxable value of your property. The assessed value represents 50 percent of the estimated market value of your property. The taxable value indicates how much of that value you will pay taxes on. Click the following link for more information