January 18, 2022

Volume XII, Number 18

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January 18, 2022

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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.

 

© 2022 Varnum LLPNational Law Review, Volume VIII, Number 19
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About this Author

Our commercial and corporate attorneys work daily on a variety of contract matters, including supplier contracts, licensing, procurement, sales contracts and contract administration.

Varnum attorneys serve our business clients’ needs in complex transactions governed by the Uniform Commercial Code, which includes Article 2 (Sales of Goods) and Article 9 (Secured Transactions). We have expertise in all facets of commercial sales, including drafting of purchase orders, quotes, and acknowledgments to protect the rights of buyers and sellers...

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