Consumer Price Index (CPI)

Consumer Price Index (CPI)

The CPI (Consumer Price Index) is based on data released by the US Department of Labor, as measured by the CPI for all urban consumers for a 12 month period using the State of Michigan fiscal year.

Starting in 1995, your property taxes were calculated on the taxable value and the increase is calculated using the prior year taxable value multiplied by the CPI or 5% whichever is lower. Unless there was a transfer of ownership then the assessed value becomes the taxable value. Also any additions or losses to the property can affect the taxable value.