What does the term "True Cash Value" refer to?

The term "True Cash Value" is synonymous with the fair market value or the usual selling price of a property. In property tax assessment, True Cash Value reflects the price a property would sell for in an open market transaction, assuming a reasonable length of time for exposure and without undue pressure on either the buyer or seller. This concept is important because it provides a standard measure for assessing properties fairly within the state of Michigan.

Understanding True Cash Value is crucial for both property owners and assessors, as it helps ensure that properties are assessed at their actual market value, promoting equity in property taxation. This valuation method relies on several factors, including the condition of the property, location, market conditions, and comparable sales data, all of which contribute to determining a property's fair market value.

The other options listed do not accurately capture the essence of True Cash Value. For instance, the assessed value of a property refers specifically to the value determined by a local assessor for tax purposes, which may not necessarily reflect its market value. Replacement cost relates to the amount needed to replace a property with a similar one, which can differ significantly from what the market might bear. Proposed market value could imply a predication rather than an actual current value as determined by market transactions.