This question can also be part of tax section:

How does a city value property for property tax purposes? I know that the city caps the annual increase in taxable value, but how do they determine the assessed & taxable value.

I ask, because I would like to contest the valuation on a property.

Thanks.

To establish the assessed value of each real property in the city, the Assessing Dept lists, inventories, inspects, analyzes sales and income data, calculates depreciated costs and appraises the value of each taxable property within the city. To establish the taxable value of each property in the city, the Assessing Dept monitors transfers of ownership to determine when the taxable value of a property becomes uncapped.

The problem is that the assessed value may decrease (as is the case with Michigan property), but the taxable value continues to rise so that the city and state collect additional revenue.

So, how do you contest the assessment? First, the city will send the property owner a notcie of assessment. This notice of assessment is not a tax bill but a notice of what the assessed and taxable value of the property are for the current year. The property owner has a limited window of opportunity to an information appeal with the city assessors department. At appeal, the property owner needs to bring appraisals, comparables and anthong else relevant to prove that the values that are listed on the assessment are inaccurate.

If you lose at the informal appeal, then you can appeal to state tribunal or in District Court.

What exactly is it that the city uses to determine if you s.e.v went up or down? It seems to me the process is arbitrarty and has little to do with the market value of the property, which is what the s.e.v is suppose to be, an estimation of the current market value of the property? If you ask me, it seems to me the cities artificially raise your s.e.v. from year to year to collect more and more taxes to fund their pocket book.