Shortly you will receive your new Notice of Assessment from your local property tax assessor. What is this, what does this really mean and what should you do with it? A quick yet careful review will help you determine whether your annual property tax expense is too high.
Your Notice of Assessment will have two values stated for both 2017 and 2018. The Assessed Value and the Taxable Value. These might be very different numbers. Assessed Value is equal to one half of the True Cash Value. True Cash Value (which isn’t stated on the Notice) is generally speaking the fair market value, or the value determined between a willing buyer and a willing seller, assuming that the sales price was not impacted by outside factors. The sales price is and should be a primary factor considered in determining True Cash Value. The Taxable Value starts with the Assessed Value and is annually adjusted. This adjustment is subject to a “cap” on how quickly the value can increase year over year, except in a year of a transfer of ownership in which it resets to equal the Assessed Value. This cap limits annual increases to the lesser of inflation or 5%. Over time the Taxable Value will be lower than Assessed Value. Your taxes are based upon the tax rate times the Taxable Value.
You also need to review the changes from 2017 to 2018; was there a significant increase? The Assessment will state either “there was” or “there was not” an addition to the property or a change in ownership. If you had no addition and no ownership change there should not be a significant change year over year. Further, you can verify the classification as “industrial real” or “commercial real” property. Sometimes it shows as a number “201” or “301.” Did this classification change since last year? If you need help, call me and I can review and explain these issues with you.
When you receive the 2018 Notice of Assessment from the local assessor, review the values and changes carefully. Is two times the Assessed Value what you think the property is worth today? Some Michigan communities and properties are still being assessed at above market rates. If your property taxes have not been appealed in the last five years or you have recently purchased or refinanced debt on the property, we may be able to reduce your tax expense.
The deadline to file a tax appeal to the Michigan Tax Tribunal on industrial or commercial real property is May 31, 2018. Get a free review to determine whether an appeal of your industrial or commercial property would be advantageous. Want to review your planning options? Contact me NOW. My initial analysis will be completed without charge or risk to you.
Kemp Klein’s tax team represents clients that own or lease industrial or commercial real property, which includes commercial, grocery, office, engineering, manufacturing, warehousing, assisted and independent living facilities.
Mr. Cnudde and the Kemp Klein tax team have successfully resolved hundreds of commercial and industrial property tax appeals throughout Michigan. Mr. Cnudde has received an AV rating from Martindale-Hubbell Law Directory (the highest peer review rating for attorneys); has a certification in tax law; and a certification from the National Institute of Trial Advocacy (NITA). Mr. Cnudde has been recognized as one of Michigan’s outstanding lawyers in the area of Mergers & Acquisitions in 2013 – 2018 with a “Rising Star” designation by Michigan Super Lawyers magazine.
To obtain your free consultation on your tax appeal opportunities complete the Property Tax Appeal Questionnaire below and return it to Mr. Cnudde at 201 W. Big Beaver Rd, Ste. 600, Troy, MI 48084 today. To view a full compendium of articles on how we can help reduce your property tax costs, go to https://kkue.com/property-tax-appeal/.
For further information regarding these matters, please contact Mr. Cnudde at 248.528.5678 or via email.