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2018 Michigan Property Tax Review: Is Your Business Being over Assessed?

Michigan property values have been relatively stable in recent years. In certain cases, this type of stability will result in predictable and stable property tax assessments. However, there are many instances in which both real and personal property tax liabilities continue to increase – often at alarming and excessive rates.

Annual Assessments and Appeal Deadlines

In the next several weeks, local tax assessors will be mailing annual real and personal property tax assessment notices to property owners/taxpayers. These notices can be confusing, but they are a critical part of the tax assessment process. Taxpayers should review their property tax assessment notices carefully to check for errors (such as property address or square footage details) and to evaluate whether their property might be over assessed. 

If the assessment is too high, the property tax liability will be overstated and a property tax appeal is required to eliminate the over assessment. The annual tax assessment notices disclose both the "assessed value" and "taxable value" of the property for the current and prior tax year. And while "taxable value" is the critical factor, both items should be reviewed to ensure accuracy. In conducting this review, taxpayers should be cognizant of certain deadlines related to potential appeals. Missing a deadline could preclude an otherwise viable appeal.

Upcoming 2018 property tax deadlines related to commercial and industrial property include the following:

February/March 2018

Assessors mail annual real and personal property tax assessment notices to property owners/taxpayers.

February 10, 2018

Deadline to file Form 5076, Application for exemption of eligible small business personal property.

February 20, 2018

Due date to file Form 5278, Application for Exemption for Eligible Manufacturing Property.

February 20, 2018

Deadline to file Form 4175, the standard personal property statement.

March 2018
(dates vary by jurisdiction)

Appeals to local Boards of review are a jurisdictional prerequisite to further appeal for residential, agricultural and timber real property assessments and property classification appeals. Appeals to local Boards of Review for other types of property are discretionary.

May 31, 2018

Deadline for assessment appeals to Tax Tribunal for commercial and industrial real property and personal property.

June 30, 2018 Deadline for appeals of classification decisions from the March Board of Review to Michigan State Tax Commission.


© 2020 Varnum LLPNational Law Review, Volume VIII, Number 19



About this Author

Wayne D. Roberts, Corporate tax attorney, Varnum

Wayne is a member of Varnum’s Tax Team. His practice includes all aspects of federal and state tax planning and tax litigation. He represents both closely-held and Fortune 100 companies in tax disputes with the IRS, the Michigan Department of Treasury, and revenue departments in Pennsylvania, Indiana, Tennessee, New York, California and numerous other state and local taxing jurisdictions. 

Alan Brody, Greenberg Traurig Law Firm, New Jersey, New York, Bankruptcy and Corporate Restructuring Attorney

Alan J. Brody focuses his practice on bankruptcy, corporate restructuring, commercial insolvency and financing. He has a wide range of experience representing clients in a variety of bankruptcy proceedings, as well as insolvency issues in business transactions, out-of-court restructurings, asset-based loans and debtor-in-possession financing.

Alan has broad experience in complex bankruptcy and creditors' rights litigation and has represented entities in the restructuring, financing and acquisition of assets in bankruptcy courts throughout the...