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Michigan Property Tax Updates

UPDATED December 2024

Coming Soon: 2025 Michigan Assessment Notices & Tax Appeal Deadlines

During the first quarter, Michigan assessors will be sending 2025 assessment notices.  For some properties, including those real property parcels that assessors have classified as agricultural or residential, an appeal to the Michigan Tax Tribunal usually requires first satisfying appeal requirements at the local level.

 Michigan’s inflation cap for taxable values (on which taxes are based), will be 3.1% for 2025.  When combined with the 5% increases of 2023 and 2024, some properties will be suffering from 13% plus tax increases during a relatively short period in which cap rates for many properties have increased and property values have declined.   

For Michigan properties that the assessors have classified as commercial real or industrial real, taxpayers should calendar May 31 as the appeal deadline for valuation appeals notwithstanding that the deadline is extended to the following Monday because May 31, 2025 is a Saturday.  Those with property tax concerns, whether because of a valuation, exemption or other issue, should confer with their property tax counsel as soon as reasonably possible.

Recent Michigan Appellate Decisions Make Property Transaction Planning More Important Than Ever.

Earlier this year, we mentioned the importance of property tax due diligence for those seeking to acquire Michigan property.  Since raising this matter, the Michigan Court of Appeals has issued more decisions that make this more important than ever.  Each year there are taxpayers who acquire properties and agree to purchase prices without carefully estimating what will happen to property taxes the year after the acquisition.  That can be a serious problem, so do not ignore a property tax risk if you will be purchasing Michigan real estate in 2025.

Michigan Court of Appeals Expands Protections For Confidential Taxpayer Information

In recent years, the Michigan Tax Tribunal has ruled that its ability to protect confidential taxpayer information was limited to narrow Michigan Freedom of Information Act exemptions.  In one of 2024’s most favorable decisions for taxpayers, the Michigan Court of Appeals has invalidated that position.  The Court held that the Tax Tribunal’s “unique position as a quasi-judicial agency with exclusive jurisdiction over tax appeal proceedings implies that information in” its possession is protected under a court rule, MCR 2.302(C)(8), which provides broad protections.  Going forward, property owners will be in a much better position to protect their confidential commercial information in Tax Tribunal appeals.   

Jackie Cook, Mark Hilpert, Stewart Mandell, Dan Stanley
Honigman LLP
American Property Tax Counsel (APTC)

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