What does the State Tax Commission require to be applied when necessary for equalization?

The requirement for applying a state equalization factor when necessary stems from the State Tax Commission's role in ensuring that property tax assessments are equitable across all jurisdictions within Michigan. This equalization process addresses disparities in property values that may occur due to differences in assessment practices among various local units of government.

A state equalization factor is applied to the assessed values of properties to scale them up or down, guaranteeing that all assessments reflect true market value uniformly across the state. The goal is to correct any inequities that might arise, thus promoting fairness in the taxation process. By using this state-level adjustment, property taxes can be distributed equitably, ensuring that each taxpayer pays their fair share based on the overall value of their property relative to the market.

In contrast, while other factors like a county equalization factor and local assessment factors may play roles in specific assessments at local levels, they do not carry the same statewide authority or objective as the state equalization factor. Federal equalization factors do not apply here, as property taxes are managed at the state and local level. Hence, the state equalization factor is the correct answer as it explicitly addresses the need for equalization on a broader scale.