What is Proposal A

The Michigan Education Finance Amendment, also known as Proposal A, caps the taxable value of individual properties at the rate of inflation, or 5% per year, whichever is lower. This helps prevent long term homeowners from being priced out of their homes. Only when a home is sold or transferred is its taxable value reset to the State Equalized Value, SEV, which is equal to 50% of the market value. This often leads to a one time tax jump for new property owners as the property is uncapped following the sale. Once a new owner holds the property, the same cap applies for every future year.

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