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May 2020
01
May 01, 2020

Now Is the Time to Review Your Real Property Tax Assessments to Avoid Excessive Property Tax Payments

COVID‑19 is causing major financial setbacks in the real estate industry which is leading many people to evaluate their expenses including real property tax assessments.

Property taxes constitute a significant expense incurred by real property owners and one that is frequently overlooked. Many published sources predict the COVID‑19 pandemic will cause immediate and significant downward pressure on the market value of nearly all properties.

With that in mind, carefully consider whether your real property should be considered for a 2020 tax appeal.

Despite COVID‑19, the tax appeal processes are moving forward as scheduled with a Michigan Tax Tribunal appeal deadline of May 31, 2020, for commercial or industrial properties and July 31, 2020, for residential or agricultural properties. In order to file a residential or agricultural property appeal, the owner must have previously protested the assessment before the local board of review in March 2020.

The law requires that the “true cash value” of real property for property tax purposes be determined as of December 31, or “tax day,” of the immediately preceding year, which for tax year 2020 would December 31, 2019. For this reason, the economic hardships experienced by property owners later in 2020 due to COVID‑19 might not constitute a basis for an appeal standing alone. However, other factors may make an appeal worthwhile. And, it is important to keep in mind that the law surrounding challenges to property tax assessments is complicated and the facts of each case are unique.

If you have any properties you would like us to review for a possible 2020 appeal, please contact Lyndsay Ott, Christian Meyer or any other member of Warner’s Real Property Litigation Practice Group as soon as possible to discuss whether an appeal is justified.

NOTICE. Although we would like to hear from you, we cannot represent you until we know that doing so will not create a conflict of interest. Also, we cannot treat unsolicited information as confidential. Accordingly, please do not send us any information about any matter that may involve you until you receive a written statement from us that we represent you.

By clicking the ‘ACCEPT’ button, you agree that we may review any information you transmit to us. You recognize that our review of your information, even if you submitted it in a good faith effort to retain us, and even if you consider it confidential, does not preclude us from representing another client directly adverse to you, even in a matter where that information could and will be used against you.

Please click the ‘ACCEPT’ button if you understand and accept the foregoing statement and wish to proceed.

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