State Taxable Value Increases for the First Time Since 2008

According to a report issued by the State Tax Commission, the taxable value of all of Michigan’s real and personal property increased during 2013 for the first time in five years. The increase in value was slightly less than $1 billion across all privately-held real estate and property. After falling from a total taxable value of $360 billion dollars in 2008 to $315.78 billion in 2012, the value rose to $316.73 billion in 2013.

This could lead to a net increase in local government’s treasuries, which receive a large share of funding from property taxes. The tax commission said on Monday that it would not have the complete amount of property taxes collected in 2013 until later this year. Property tax revenue decreased from $14.1 billion in 2009 to $12.8 billion in 2012.

While the total taxable value of state property saw a slight increase, the state equalized value remained at roughly the same level as in 2012, about $350 billion, according to the report. In 2008 the state’s equalized value totaled around $450 billion. During the intervening period, the state’s equalized valuable and taxable total value have come the closest to matching probably since the creation of taxable value was created with the approval of Proposal A school funding two decades ago. The difference between equalized value and taxable value was $43 billion in 2013, while in 2008 the difference was about $95 billion.

Of the $316.73 billion, residential property accounted for 75% taxable value at $214.3 billion. Personal property accounted for $31 billion dollars of the total. Commercial property accounted for $15.3 billion.

posted by PAA Online , Friday, February 14, 2014 11:14 AM
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