Proposal A was approved by the voters of the State of Michigan on March 15, 1994. This Constitutional Amendment states that, "for taxes levied in 1995 and each year thereafter, the legislature shall provide that the taxable value of each property adjusted for additions and losses, shall not increase each year by more than the increase in the immediately preceding year in the general price level, as defined in Section 33 of this Article, or 5 percent, whichever is less until the ownership is transferred."
Proposal A implemented a cap on the growth in Taxable Value. Starting in 1995, property taxes have been calculated using the new term, "Taxable Value." Prior to 1995, property taxes were calculated using State Equalized Value. Taxable Value is now the single property tax base used to calculate property taxes.
Each year, a new Taxable Value is calculated for each parcel of real property. For those properties that have not transferred ownership, the current Taxable Value is the lower of either:
1. Current State Equalized Value for the parcel
Or
2. Current Capped Value for the parcel, determined as:
Prior Taxable Value, minus losses, multiplied by either 1.05 or the inflation rate (which ever is lower), plus additions.
If an ownership transfer had taken place, item #2 would not be utilized and the new Taxable Value would equal the current State Equalized Value (#1). In the year following a transfer of ownership, the property is uncapped with the S.E.V. equaling Taxable Value.
Click here for the 
Property Transfer Affidavit form.
This legislation did not alter the uniformity provisions found in the 1963 Michigan Constitution. Assessed values, as equalized (State Equalized Value or S.E.V.), are still required to be at 50% of market value. Assessments are reviewed and adjusted on a yearly basis according to the value of the property, based on recent sales throughout the Township. Increases in assessed value are not limited by percentage or amount. Assessed value is not capped by any formula.
- State Equalized Value (S.E.V.) is half of the Appraised Market Value
- Capped Value is last year's Taxable Value minus any losses, multiplied by the lower of either 1.05 or the inflation rate, plus any additions to the property.
- Taxable Value is the lesser of the State Equalized or Capped Value. The Taxable Value will be used for the calculation of property taxes.