Are you looking at your Sterling Heights tax bill and wondering why there are two values for your home? You are not alone. Understanding SEV and taxable value helps you budget accurately and avoid surprises when you buy or sell. In this guide, you will learn what each term means, how uncapping works, and how to read your local bill with confidence. Let’s dive in.
SEV vs taxable value: the basics
If you own property in Michigan, you will see two main values on your assessment and tax bill.
- True Cash Value (TCV): Michigan’s term for market value, or what a willing buyer would pay a willing seller.
- State Equalized Value (SEV): By law, SEV equals 50% of true cash value. It is the assessed value after equalization.
- Taxable Value (TV): The number your property taxes are usually based on. Taxable value can be less than or equal to SEV.
Your annual property taxes are typically calculated as: Taxes = (Taxable value ÷ 1,000) × total millage. Millage is the tax rate expressed per $1,000 of taxable value.
Proposal A and annual limits
Michigan’s Proposal A sets a cap on how much your taxable value can increase each year if there is no ownership change. The increase is limited to the lesser of the inflation rate (CPI) or 5%. This is why taxable value often lags behind SEV during periods of rising home prices.
When no transfer of ownership occurs, your taxable value generally rises slowly, even if your market value and SEV rise faster. This cap does not mean taxes stay flat, but it helps limit year-to-year jumps.
What uncapping means when you buy or sell
Most transfers of ownership trigger uncapping. That means the taxable value resets to equal the SEV for the next applicable tax year. When that happens, taxes often increase because the taxable value is no longer capped below SEV.
There are common exceptions that do not trigger uncapping. Transfers between spouses, certain transfers resulting from death, and some transfers involving specific trusts or close family members may be exempt under state law. Refinancing or changing lenders does not trigger uncapping. Because exemptions are specific and documentation-based, you should verify your situation with the Sterling Heights Assessor or Macomb County Equalization.
How to read a Sterling Heights tax bill
Most Sterling Heights or Macomb County tax statements include:
- Parcel number or Property Identification Number
- Owner name and property address
- SEV and taxable value
- Principal Residence Exemption (PRE) status
- Millage rates and levy descriptions for city, county, schools, library, and other local items
- Total taxes due and payment deadlines
- Contact details for the Treasurer or Assessor, plus instructions for questions or appeals
A simple numeric example
Assume the following for a hypothetical Sterling Heights home:
- True Cash Value (market value): $300,000
- SEV: 50% of TCV = $150,000
- Prior-year taxable value: $120,000 (capped from previous years)
- Combined local millage: 40.000 mills
Scenario A: no ownership change this year
- Taxable value increases under the cap to about $123,000
- Taxes = ($123,000 ÷ 1,000) × 40 = $4,920
Scenario B: property transfers to a new owner
- Taxable value resets to SEV = $150,000
- Taxes = ($150,000 ÷ 1,000) × 40 = $6,000
That uncapping raises the annual bill by about $1,080 in this example. Actual millages and assessments change each year, so pull the current bill and rates before you run final numbers. If you qualify for the Principal Residence Exemption, your school operating millage may be reduced, but PRE does not stop uncapping.
Quick calculation checklist
- Find the taxable value line on your bill
- Add up the millages listed for each levy
- Apply the formula: (Taxable value ÷ 1,000) × total mills
- Compare your result to the total due and note any special assessments that are calculated separately
Buyer tips in Sterling Heights
- Expect a likely increase in property taxes after you purchase because taxable value generally resets to SEV at transfer.
- Ask the seller or the local assessor for the current SEV and taxable value before you submit your offer.
- If you will live in the home as your principal residence, file for the Principal Residence Exemption to reduce applicable school operating taxes. PRE does not prevent uncapping after a transfer of ownership.
Seller tips in Sterling Heights
- Be ready to explain the difference between SEV and taxable value to buyers and how uncapping may affect their future taxes.
- Share whether your taxable value is currently capped and include recent tax bills in your disclosures to set clear expectations.
- If your home has exemptions, note them and be prepared to provide documentation so buyers understand what may or may not carry forward.
Appeals and timing
If you disagree with your assessed SEV, your first step is usually the local Board of Review. Cities and townships commonly hold a March Board of Review for valuation appeals, and some also hold sessions in summer or December for limited issues. If you are not satisfied after the Board of Review, you can appeal to the Michigan Tax Tribunal. Deadlines are strict, so confirm dates with the City of Sterling Heights Assessor or Macomb County.
For questions about uncapping, provide the assessor with deeds and any supporting documents that show whether an exemption applies. Effective timing can vary by office practice, so verify the tax year in which a change would show on the bill.
Who to contact locally
- City of Sterling Heights Assessor’s Office for assessments, PRE questions, and Board of Review schedules
- City of Sterling Heights Treasurer’s Office for payment due dates and bill questions
- Macomb County Equalization and Treasurer for millage schedules and county-level parcel data
- Michigan State Tax Commission and Michigan Department of Treasury for definitions, transfer-of-ownership rules, and appeal guidance
The bottom line for Sterling Heights
SEV is 50% of market value, and taxable value is the number used to compute most property taxes. Proposal A limits taxable value increases each year when there is no transfer of ownership. When a sale occurs, taxable value often resets to SEV, which can increase the tax bill for the new owner. If you understand these moving parts, you can price correctly as a seller, budget well as a buyer, and avoid surprises come tax time.
If you want help estimating the impact on a specific Sterling Heights property, reach out to a local advisor who knows Macomb County rules and timelines. Contact Raymond Matti for a free neighborhood consultation and a clear plan tailored to your next move.
FAQs
What is the difference between SEV and taxable value in Michigan?
- SEV is 50% of a property’s true cash value, while taxable value is the figure used to calculate most property taxes and is limited by Proposal A unless uncapped.
How does Proposal A limit my Sterling Heights property taxes?
- For properties that did not change ownership, taxable value increases are capped at the lesser of inflation or 5% each year, which often keeps taxable value below SEV.
When does taxable value uncap after a Macomb County home sale?
- A transfer of ownership generally uncaps taxable value, resetting it to equal the SEV for the next applicable tax year once the assessor processes the transfer.
Does the Principal Residence Exemption stop uncapping in Sterling Heights?
- No, PRE can reduce certain school operating taxes but it does not prevent uncapping of taxable value after a transfer of ownership.
How can I estimate my Sterling Heights property taxes from the bill?
- Use the formula: Taxes = (Taxable value ÷ 1,000) × total millage, and account for any separate special assessments listed on the bill.
Where can I find current millage rates in Macomb County?
- Check with Macomb County Equalization or the City of Sterling Heights Treasurer for the latest millage schedules that apply to your parcel.
How do I appeal my SEV assessment in Sterling Heights?
- Start with the City of Sterling Heights Board of Review during the scheduled meetings, then appeal to the Michigan Tax Tribunal if needed, following all deadlines.
