Values have begun to rise, particularly for high quality larger industrial facilities.  Property taxes remain a major concern for owners or tenants of real property in Michigan.  You will shortly receive your 2016 real property tax Notice of Assessment form from the local assessor, and some Michigan communities and individual properties are still being assessed at above market rates. Who you select to assist with the review and appeal of your commercial and industrial property tax expenses can have an important impact on the likelihood of success.

The difference between the city’s opinion of value and that of our appraisers depends on minute details.  Commercial and industrial property is appraised using two primary methods, the “market approach” which reviews comparable sales, and the “income approach” with capitalizes the normalized earnings for the property.  Which sales are used as “comparable” and the methods used to calculation the capitalization rates is often debated and makes a dramatic impact on the success of an appeal.  Using a team with the experience and knowledge to apply factors supported by case law and current trends is critical to success.

If your property taxes have not been appealed in the last few years or if you recently purchased property, you need to review your assessment today. The general rule is that property in Michigan is assessed at 50% of the True Cash Value (i.e., Fair Market Value). If your assessments are higher, there is an opportunity to reduce your property tax.

To file a tax appeal to the Michigan Tax Tribunal on Industrial or Commercial real property, the deadline is May 31, 2016 and July 31st for Residential. Interested in 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 (and not later than April 15, 2016). 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, retail including grocery, office space, engineering and manufacturing, warehousing, assisted and independent living facilities, and small business. We also represents clients in appeals for appeal of changes in the classification of real estate applications for (or denials of) property as exempt from tax as charitable use property for nonprofit businesses.

Mr. Cnudde and the Kemp Klein tax team have significant experience working on property tax appeals. We have settled and litigated countless numbers of property tax appeals to completion. Mr. Cnudde is a DBusiness Top Lawyer for Tax Law and Non-Profit/Charities Law (2012 – 2014); has received an AV rating from Martindale-Hubbell Law Directory (the highest peer review rating for attorneys); has a certification in tax law; and received certification from the National Institute of Trial Advocacy (NITA) in 2006. In addition, Mr. Cnudde has been recognized as one of Michigan’s outstanding young lawyers in the area of Mergers & Acquisitions in 2013 – 2015 with a “Rising Star” designation by Michigan Super Lawyers magazine, published annually by Law & Politics.

To obtain your free consultation on your tax appeal possibilities, complete the Property Tax Appeal Questionnaire and return it to Mr. Cnudde today.

For further information regarding these matters, please contact Mr. Cnudde at 248.528.1111 or via email.