Commercial property owners urged to review accuracy of tax appraisal — or appeal — by May 31 deadline
Michigan commercial property tax assessments arrive by March each year, requiring property owners to determine if they are going to accept and pay – or fight and appeal – their assessment by the May 31 deadline.
Attorneys in the commercial real estate practice of Birmingham, Michigan-based business law firm Williams Williams Rattner & Plunkett, encourage property owners to consider market conditions closely before paying their assessment.
“The commercial real estate market in Michigan is complex,” Jerome P. Pesick, a shareholder who specializes in commercial property tax appeals, eminent domain and condemnation law, and land use cases, said. “Values are rising in certain commercial sectors, while others are stagnant or in decline. That’s why it’s important to ensure the property’s assessment is in line with what the market will justify.”
The notice of assessment contains the value that the local assessor has placed on the property and determines the amount of property tax due. For assessment purposes, a property’s assessed and taxable values should be no more than half of its market value.
“We are seeing several instances where assessments fail to account for market realities, especially with the higher cost of financing, increased expenses, and a greater risk of vacancy/collection loss,” Brian Etzel, WWRP shareholder, said. “When that happens, the property owner can either pay an artificially inflated tax bill or challenge the assessment before the Michigan Tax Tribunal.”
The last day for commercial/industrial property tax appeals to be filed with the Michigan Tax Tribunal is May 31, 2024. Williams Williams Rattner & Plunkett’s tax appeal team, including Pesick, Etzel and shareholder Jason C. Long, has been intricately involved in the commercial property tax appeal process for decades.
“Challenging and, if necessary, litigating property tax assessments, is a niche area of the law that requires attention to detail, strong negotiation and trial skills, a keen understanding of commercial real estate, and strict adherence to deadlines,” Long said.
Attorneys in the commercial real estate practice of Birmingham, Michigan-based business law firm Williams Williams Rattner & Plunkett, encourage property owners to consider market conditions closely before paying their assessment.
“The commercial real estate market in Michigan is complex,” Jerome P. Pesick, a shareholder who specializes in commercial property tax appeals, eminent domain and condemnation law, and land use cases, said. “Values are rising in certain commercial sectors, while others are stagnant or in decline. That’s why it’s important to ensure the property’s assessment is in line with what the market will justify.”
The notice of assessment contains the value that the local assessor has placed on the property and determines the amount of property tax due. For assessment purposes, a property’s assessed and taxable values should be no more than half of its market value.
“We are seeing several instances where assessments fail to account for market realities, especially with the higher cost of financing, increased expenses, and a greater risk of vacancy/collection loss,” Brian Etzel, WWRP shareholder, said. “When that happens, the property owner can either pay an artificially inflated tax bill or challenge the assessment before the Michigan Tax Tribunal.”
The last day for commercial/industrial property tax appeals to be filed with the Michigan Tax Tribunal is May 31, 2024. Williams Williams Rattner & Plunkett’s tax appeal team, including Pesick, Etzel and shareholder Jason C. Long, has been intricately involved in the commercial property tax appeal process for decades.
“Challenging and, if necessary, litigating property tax assessments, is a niche area of the law that requires attention to detail, strong negotiation and trial skills, a keen understanding of commercial real estate, and strict adherence to deadlines,” Long said.
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