Property Valuation

Under Michigan's Proposal A, a property's taxable value increases annually by the lesser of 5% or:

AThe inflation rate
BThe Consumer Price Index (CPI)✓ Correct
CThe state equalized value increase
DThe local millage rate

Explanation

Michigan's Proposal A (1994) caps annual taxable value increases at the lesser of 5% or the rate of inflation (CPI). This protects existing homeowners from rapid assessment increases.

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