Buying or selling in Bloomfield Hills and wondering why the seller’s taxes look so low compared with what you might pay next year? You are not alone. Michigan’s State Equalized Value and Taxable Value work together in ways that can cause a jump after closing. In this guide, you will learn what SEV and Taxable Value mean, how uncapping works in Oakland County, and how to plan your budget with confidence. Let’s dive in.
SEV vs taxable value: simple definitions
True Cash Value (market base)
True Cash Value is the market value the assessor assigns to your property. It is the baseline for assessment in Michigan. Assessors use sales data, condition, and features to estimate this value each year.
State Equalized Value (SEV)
SEV is usually 50% of your property’s True Cash Value. If the assessor sets your market value at $1,000,000, the SEV is about $500,000. The SEV helps standardize assessments statewide and is a key reference point for changes after a sale. You can review the basics in the Michigan Department of Treasury’s property tax guidance from the state’s official site.
Taxable Value (TV) and the cap
Taxable Value is the number used to calculate your property tax bill. Under Proposal A, it typically rises each year by the rate of inflation or 5%, whichever is lower, as long as ownership does not change. When a transfer of ownership occurs, the cap resets and the TV is set to the current SEV in most cases. The Principal Residence Exemption is a separate program that may reduce certain school operating taxes, but it does not prevent uncapping at transfer. You can learn more about the PRE from the Michigan Department of Treasury.
- Michigan Department of Treasury property tax guidance: state overview and definitions
- Michigan Department of Treasury PRE program: Principal Residence Exemption
When uncapping happens after a sale
Proposal A and annual limits
Proposal A created the rules for capping Taxable Value growth and uncapping at transfer. That is why long-held homes often have TVs well below current market values. After a sale, the TV typically resets to match the SEV, which increases the tax base for the next billing cycle.
Transfers that may be excluded
Some transfers do not trigger uncapping, including certain transfers between spouses, some trust transfers, and specific family transfers defined by statute. These are narrow exceptions and depend on deed language and timing. Always verify your exact situation with the local assessor before you assume an exclusion applies.
How assessments work in Oakland County
Local assessor and timeline
Local city and township assessors determine True Cash Value and set annual assessments based on state law. Oakland County Equalization provides oversight, equalization factors, and countywide resources. Assessment changes are reflected in your seasonal tax bills on the county and local schedule. For county-level context, review the Oakland County Equalization page.
New construction and changes
Additions, new garages, renovations, demolitions, and other physical changes can affect both SEV and TV. If you complete new construction or major improvements, expect an assessment review. This can lead to adjustments even without a transfer of ownership.
Where to check your records
Your local assessor’s office and Oakland County resources can provide parcel data, notices, and guidance on uncapping estimates. If your home is within city limits, start with the City of Bloomfield Hills Assessing office. If your address is in Bloomfield Township, contact Bloomfield Township Assessing. For tax bill timing and payment details, visit the Oakland County Treasurer.
Bloomfield Hills examples (hypothetical)
Example A: Long-held home that sells
- Pre-sale snapshot: SEV on record is $400,000, which implies a market value near $800,000. The capped Taxable Value is $280,000.
- After the sale: The property closes at $1,200,000. The assessor determines a True Cash Value of about $1,200,000; the SEV is set near $600,000.
- Uncapping: The Taxable Value resets to the SEV, about $600,000. The buyer’s tax base jumps from $280,000 to $600,000 in the next cycle.
- Going forward: In later years, TV increases are capped again, limited to inflation or 5%, whichever is lower, until the next uncapping event.
Example B: How to estimate your tax payment
- Use the formula: Tax = (Taxable Value ÷ 1,000) × Total Millage.
- Before the sale, the seller’s TV might be much lower than SEV due to the cap. After the sale, set TV equal to the new SEV for your estimate.
- Do not assume millage rates. Get current total mills for your parcel from Oakland County or your municipal treasurer. Then run the calculation to estimate your first full-year taxes.
What buyers should do before closing
- Expect uncapping. Plan for the TV to reset to the current SEV after transfer unless a specific exclusion applies.
- Gather documents. Ask the seller for the latest Assessment Notice, current SEV and TV, PRE status, and the most recent tax bill.
- Request an estimate. Contact the local assessor and Oakland County Equalization and ask for an uncapping estimate based on your contract price, closing date, and parcel ID.
- Budget conservatively. Set aside for a higher first full-year tax bill, especially if the seller owned the home for many years.
- Talk to your lender. Confirm how and when your escrow will adjust for the higher post-uncapping tax amount.
What sellers should prepare
- Share paperwork early. Provide the buyer with the most recent Assessment Notice, PRE confirmation, and the last two years of tax bills.
- Discuss proration. Ask your closing agent how taxes are prorated in your transaction and what that means for your net at closing.
- Set expectations. Explain that buyers should not rely on your current tax bill for future amounts, since the TV will likely reset after transfer.
Estimate your first-year taxes step by step
- Confirm your sale price or current market value for a near-term True Cash Value estimate.
- Get your parcel’s current SEV and TV from your assessor or county resources.
- Confirm PRE status with the assessor.
- Obtain the current total millage for your parcel’s taxing jurisdictions from Oakland County or your local treasurer.
- Use the basic formula: Tax = (Taxable Value ÷ 1,000) × Total Millage.
- For a post-transfer estimate, set TV equal to SEV and compute again.
If you need help, ask your local assessor for a written uncapping estimate that shows your expected TV after closing and the millage assumptions used.
Tips to avoid surprises
- Label examples as hypothetical. Use actual millage rates for your parcel and the current year when you run numbers.
- Verify any exclusion claims. If you think your transfer might be excluded from uncapping, confirm with the assessor before you close.
- Track improvement plans. If you intend to add on or renovate, factor in potential assessment changes alongside any uncapping effects.
- Keep documentation handy. Your parcel ID, tax bills, and Assessment Notice make conversations with the assessor faster and more precise.
If you want a clear plan for your Bloomfield Hills move, tailored to your budget and timeline, connect with Eddie Mallad. You will get seasoned guidance, responsive communication, and the resources of a top Metro Detroit brokerage behind you.
FAQs
What happens to property taxes after I buy in Bloomfield Hills?
- In most cases, the Taxable Value uncaps at transfer and resets to the current SEV, which increases your tax base for the next billing cycle; later increases are then capped annually.
Will my taxes go up right at closing?
- Tax bills follow county and local schedules, so you may not see a bill immediately; your Taxable Value will rise after transfer and your lender typically adjusts escrow to match.
Can I avoid uncapping when I transfer ownership?
- Some transfers are excluded by statute, such as certain spousal, trust, or qualifying family transfers; verify your specific deed and timing with the local assessor.
How do I estimate my first full-year taxes?
- Set TV equal to SEV for a post-transfer estimate, get current total mills from Oakland County or your treasurer, and use Tax = (Taxable Value ÷ 1,000) × Total Millage.
What is the difference between SEV and TV in Michigan?
- SEV is generally 50% of market value and is a benchmark for assessments, while TV is the number used to calculate your tax bill and is capped annually until a transfer occurs.
