Tips for Property Tax Appeals in Michigan
Do you feel like your property is valued lower than what the assessor thinks? If you feel like you’re overpaying on your taxes, then appealing your property tax assessment might be a step you can take to potentially lower your tax bill. As a real estate attorney, here are four tips to keep in mind when appealing your property taxes.
#1: Review Your Tax Assessment
First, check your tax assessment itself. Every February, you should receive a notice of assessment from your local municipality that outlines the assessed value of your property. The assessed value should be 50% of the true cash value – or market value – of the property. The taxable value can be up to the assessed value, but could be lower and is capped at a 5% increase each year.
#2: Ask Yourself: Is An Appeal Appropriate?
After reviewing your assessment, decide if an appeal is necessary. If the market value – or true cash value – of your property was assessed at a higher than what you think the market value of the property is, then you may be eligible for a property tax appeal.
#3: Gather the Right Documents
In deciding whether to appeal, it’s important to gather the right documents. The primary document you will need is an appraisal or comparative market analysis done by a real estate professional. This document should evaluate the market value of the property and show that the market value is lower than the true cash value – 2x the assessed value. You may also gather documents such as insurance documents, sales comparisons of similar nearby properties, and/or documents regarding local neighborhood changes.
For commercial properties, you may need more complicated valuation tools such as an income capitalization approach, cost approach, business profitability documents, capital expenses needed for the property, and a change of use of the property to demonstrate the value of the property has declined.
#4: Be Aware of Deadlines for Appeal Processes
Finally, be aware of the deadlines for the appeal process. The Board of Review typically meets in the second week of March, and you’ll need to fill out a petition to appeal and potentially schedule an appointment depending on the municipality. If the Board of Review doesn’t provide a decision in your favor, you can appeal to the Michigan Tax Tribunal by July 31st of the same year for residential properties, or May 31st for commercial properties. For residential properties, an appeal to the March Board of Review is a necessary step before appealing to the Michigan Tax Tribunal.
Michigan Real Estate Attorneys | Fausone Bohn, LLP
If you’re considering appealing your property taxes, it’s important to take the right steps in order to ensure a successful outcome. With the help of an experienced Real Estate Attorney, we can help ensure that you’re well-prepared for the appeal process and give you the best chance of lowering your tax bill.
To learn more about your potential tax appeal, contact Real Estate & Business Attorney Robert C. Pollock at (248) 912-3213, or fill out our form to receive a free consultation.