Property values in my neighborhood have been decreasing. Will my property valuation be decreasing as well?

Unfortunately, there isn't a yes or no answer to that question. If you've owned your property for a significant amount of time, more than likely your State Equalized Value (SEV) far exceeds your Taxable Value. If this is the case, a decrease in valuation, caused by a cooling real estate market, will be reflected in the SEV. The Taxable Value is required by the Michigan Constitution to increase each year by the rate of inflation or 5%, whichever is lower. In the case of a longtime property owner, the SEV could decrease, while the Taxable Value will increase.

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1. Property values in my neighborhood have been decreasing. Will my property valuation be decreasing as well?
2. Does that mean I would pay more property taxes instead of less?
3. Why won't my taxes decrease if my property value is going down?
4. Will my taxes ever go down?