State Equalized Value (SEV)
Once an Assessor has estimated the market value of a property, he is required to record 50% of that amount as the State Equalized Value.

A home's State Equalized Value will change annually to reflect fluctuation
of local property values. It will not increase radically unless major construction improves the property, or the property changes hands.

Capped Value and Taxable Value (TV)
The Assessor annually calculates the Capped and Taxable Value of each property. The Capped Value is calculated by multiplying the previous year's Taxable Value by the Consumer Price Index (CPI), but not to exceed 5%. Additions, such as a new four season room, are factored in. The result is
the Capped Value for the current year.

The lesser of the State Equalized Value and the Capped Value become the Taxable Value.

The "capping" process will continue annually until ownership is transferred. When a change of ownership occurs, the next Taxable Value will be based
on the State Equalized Value.
 

Note:
The actual sales price of a property is not the sole basis of the new State Equalized Value for that property.