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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, 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).

2020 Capped Value Formula as follows:
2020 CAPPED VALUE = (2019 Taxable Value – LOSSES) X 1.019 + ADDITIONS
Calculation Example: No transfer/uncapping, or losses or additions:
2019 Base Taxable Value $100,000 x 1.019 = $101,900 Tentative 2020 Taxable Value
This page last updated on 2/14/2020.