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Inflation Rate Multiplier/C.P.I. Information 2

Inflation Rate Multiplier for use in the 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, the 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. This will impact any property that is increasing in value or where there is a difference between taxable value and state equalized value (SEV).

2021 Capped Value Formula as follows:
2021 CAPPED VALUE = (2020 Taxable Value – LOSSES) X 1.014 + ADDITIONS
Calculation Example: No transfer/uncapping, or losses or additions:
2020 Base Taxable Value $100,000 x 1.014 = $101,400 Tentative 2021 Taxable Value
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Previous years information:
2019 Inflation Rate Multiplier for use in the 2020 capped value formula & “Headlee” Millage Reduction Fraction (MRF) formula
This page last updated on 1/19/2021.