Michigan assessors are required to assess taxable properties at 50% of market value. Market value is the price most people would pay for the property in its current condition on December 31. For example, a house with a market value of $100,000 would have an assessed value of $50,000.
The best indicator of the market value of a particular property is comparable sales in a homogeneous neighborhood. Each year, the assessor analyzes two preceding years of neighborhood sales data and estimates property values using mass appraisal methods set by the State Tax Commission. In addition, the assessor may value rental houses, apartments and commercial properties based on their income producing potential.