In Michigan, is the actual selling price of a property a controlling factor for True Cash Value?

The actual selling price of a property is not considered a controlling factor for establishing True Cash Value in Michigan. True Cash Value is defined as the usual selling price of a property when it is exposed to the market for a reasonable period of time, meaning that it represents what a willing buyer would pay a willing seller in an open market. However, the assessed value is determined based on a variety of factors, including comparable sales, the condition of the property, location, and other market dynamics, rather than solely relying on the most recent transaction price.

Relying only on the actual selling price could lead to inconsistencies and inaccuracies in assessing property values since it might not reflect the broader market conditions or the intrinsic qualities of the property being evaluated. Additionally, factors such as property improvements and neighborhood changes could significantly affect property values over time, making it essential to consider multiple valuation methods rather than the sale price alone. This approach aligns with the principle of fair and equitable taxation, ensuring that properties are assessed in a way that reflects their true market potential rather than just recent transactions.