What is "Taxable Value" in the context of Michigan property taxes?

Taxable Value in the context of Michigan property taxes refers specifically to the value that is used for calculating property taxes owed by the property owner. This value is determined based on a combination of the property’s assessed value, certain adjustments prescribed by tax laws, and limitations such as the Annual Inflation Rate Multiplier and the Headlee Amendment.

Taxable Value is distinct from total market value or assessed value; it does not represent the current market value of a property or what the property might be sold for in the future. Therefore, while the assessed value is an important starting point, the Taxable Value also accommodates the various regulations that impact how much of that assessed value is subject to taxation each year. This calculation is crucial as it directly influences the amount of property tax that an owner will need to pay.

The other options involve concepts that either do not directly affect tax calculations or are broader in scope than what Taxable Value represents.