What is the final State Equalized Value (SEV)?

The final State Equalized Value (SEV) represents the assessed value of a property after it has undergone adjustments made by the county and state to ensure equitable taxation. This value is determined based on the property's market value, which is typically assessed at 50% of its true market value in Michigan. However, the SEV is refined through various evaluations and adjustments to correct any discrepancies or ensure compliance with state regulations.

These adjustments take into account factors such as market fluctuations, local economic conditions, and the need for uniform assessment practices across different jurisdictions. The purpose of reaching a finalized SEV is to standardize property values within the jurisdiction and provide a basis for property taxation, ensuring that all property owners are fairly assessed.

While the market value of the property and the price at which it sells are related to overall assessments, they do not reflect the finalized value used for taxation purposes. Similarly, taxable value is derived from the SEV but may be adjusted further based on local regulations such as the Headlee Amendment, which limits the increase of taxable values. Thus, the final SEV is crucial for determining equitable assessments and ensuring fair taxation across properties.