Inflation Rate Multiplier for use in the 2018 capped value formula and the “Headlee” Millage Reduction Fraction (MRF) formula
Including a list of IRM rates since the implementation of Proposal A (1995).
Each year, state constitution requires an inflation rate be calculated to be used for property tax purposes. State uses the Federal Consumer Price Index to set the rate. For property tax assessments that will be approved in March, the official inflation factor will be .9 percent (1.009). This will impact any property that is increasing in value or where there is a difference between taxable value and state equalized value (SEV).
2018 Capped Value Formula as follows:
2018 CAPPED VALUE = (2017 Taxable Value – LOSSES) X 1.021 + ADDITIONS
Calculation Example: No transfer/uncapping, or losses or additions:
2017 Base Taxable Value $100,000 x 1.021 = $102,100 Tentative 2018 Taxable Value
This page last updated on 11/15/2017.