Property Valuation
In Michigan, when a property is sold, its taxable value is:
AFrozen at the current taxable value
BUncapped and reset to the State Equalized Value (SEV), often called 'popping the cap'✓ Correct
CReduced by 10% as a welcome-homeowner benefit
DMaintained at its previous taxable value for 2 years
Explanation
In Michigan, upon a transfer of ownership, the taxable value is uncapped and reset to the State Equalized Value (50% of market value). This often results in a significant property tax increase for the new owner.
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