How can my Taxable Value go up when my Assessed Value stays the same or even goes down?

Assessments are a function of property value and property taxes are calculated on your taxable value. In 1994 Proposal A required property taxes be calculated based on the Taxable Value, not the Assessed Value. By law, Taxable Values are annually increased or decreased each year by the CPI (Consumer Price Index) or 5% whichever is lower; unless there are physical changes to the property or a transfer of ownership occurred.

During the 1990s and early 2000s, property values greatly exceeded the annual CPI. This has created a gap between the Assessed and Taxable Values. Property taxes will continue to rise until the taxable value is equal to the Assessed Value. Therefore, it is possible for your assessment to go down, yet a Taxable Value will increase until the assessment and taxable value are equal. Proposal A does not permit the taxable value to ever be higher than the assessed value.

Show All Answers

1. When will my property be evaluated?
2. What factors contribute to the increase in taxable value of my property?
3. Why do assessed values change from year to year?
4. When are property taxes mailed and when are they due?
5. How can my Taxable Value go up when my Assessed Value stays the same or even goes down?
6. What is the deadline for filing a Principal Residence Exemption Affidavit?
7. I moved to a different home before the June 1st filing deadline. May I claim my new home?
8. I moved into my Bloomfield Hills home after June 1st, but by November 1st. Do I qualify for a Principal Residence Exemption?
9. Can I, as closing agent, be held liable to a buyer or seller if the buyer is not granted a homestead exemption? (See full question in the answer)
10. What determines principal residence?
11. How is the amount of my tax determined?
12. Where do I pay Delinquent Tax Payments?
13. How can I make a payment after hours?
14. What is the millage rate in Bloomfield Hills?
15. How do I get a stamped receipt if I use the drop box?
16. What is the IRS School Code for my School District?
17. Where does my tax money go?
18. If I do not receive my tax bill and I miss the due date am I liable for the interest and penalties?
19. Is there any relief in taxation for Senior Citizens?
20. How do I update my name and address?
21. How can I pay my tax bill?