Practices

State and Personal Property Tax

Fraser Trebilcock’s state property tax practice group represents Michigan property owners in disputes involving taxation of real estate and personal property. Disputes generally involve property valuations or entitlement to exemptions. If inaccurate values were used to prepare your assessment or if you were improperly denied an exemption, you may be entitled to tax relief. Our attorneys will work with you to make sure that your property tax appeal is properly filed, negotiate resolutions with local tax assessors on your behalf, and represent your appeal before the local Board of Review, and, if necessary, the Michigan Tax Tribunal.

Your property tax assessment should reflect your property's current value. Any of the following factors may affect the value of your property:

Economic Obsolescence. Has the value of your real estate or personal property been reduced by such things as changes in traffic patterns or the market?

Functional Obsolescence. Has your real estate or personal property become disadvantaged due to its utility, style, or design? For example, is your facility outdated compared to the one your competitor has newly constructed?

Improper Inclusion of Intangibles. Does the assessed value of your real estate improperly include the value of intangible property owned by your business? For example, did the assessor improperly include the value of licenses, contracts or goodwill to establish the value of your business?

Increase After the Sale of Property. Are your real estate taxes too high because an assessor has engaged in the illegal practice known as "following sales?"

Methodology. Has the assessor used the most appropriate valuation methodology? Is using a cost, income or market approach a more accurate way to establish the true cash value of your property?

Environmental Contamination or Stigma. Has your property been environmentally contaminated? Or does it carry the stigma of being previously contaminated or located adjacent to an area with known environmental contamination?

Timeline. If tax values set by an assessor exceed your property's true cash value, important steps must be taken to "perfect" or file an appeal. The deadlines are critical:

The Tuesday following the first Monday in March is the date by which protests to the local Board of Review must be made. (It is important to note that certain municipalities require assessor reviews earlier in February. You should contact the practice group or your local taxing unit regarding specific deadlines.) June 30th is the date for filing petitions with the Michigan Tax Tribunal.