Frequently Asked Questions

What is the Michigan Property Tax Appeal Process

A Property tax appeal is a formal request to re-evaluate the basis used for determining how much you are required to pay for your property taxes. Successful Property Tax Appeals are a result of proper information and presentation.

A successful Property Tax Appeal is anything but automatic. A property owner that feels that the tax assessment is not a valid representation of the "Fair Market Value or per the Michigan Tax Tribunal term of "True Cash Value".

The Assessors board of review usually consists of 3 or 4 members of your community who will sit in judgment of your request. In order to be successful, valid reasons and verifiable data must be presented in a professional manner. This is mandatory for the Residential property owner. Non-Residential property owners can appeal directly to the State Level via the Michigan Tax Tribunal. For all appeals that the Taxpayer feels is unsuccessful at the local level, the Michigan Tax Tribunal is only appeal level available to the Taxpayer for further relief.

CTR is experienced at obtaining and explaining the required information in order to obtain the tax reduction that you deserve.

Why Should One Appeal Their Property Taxes?

The laws under the General Property Tax Act for the State of Michigan allow for property tax reductions if the true Cash Value is less than the Taxable Value. In many instances, this is the case. Many municipalities have voluntarily reduced the Taxable Value of properties in their jurisdiction; however the amount of the reduction is far from the actual true cash value that is in the marketplace.

It is also important to note that after your reduction is in place the Taxable Value cannot be increased by more than 5% or the rate of inflation whichever is the less. Historically, this increase has been about 3% per annum, which is based on the Consumer Price Index or CPI. This is not based on the value of Real Estate in the marketplace. Your tax savings will continue until the property is transferred, or physical changes have occurred in the property during the course of ownership.

Properties purchased between 1998 and 2009 are most likely to be over assessed.

Additionally any property recently purchased should be analyzed due to the Uncapping of the (SEV) State Equalized Value. Upon the registration of a deed transfer the municipalities are allowed by State Law to adjust the Taxable Value to the higher (SEV) value, under most circumstanced this will result in a sizable increase in the tax amount charged.

Other conditions may trigger this Uncapping; we recommend that you seek legal advice prior to any transfer of ownership.

What is the Tax Appeal Process?

Research

• Regional data is analyzed and collected.
• Verification of actual values.
• Appeal documents and presentation assembled.

Presentation to the Board of Review (if required)

• All data is professionally presented to the members of the board and corrections to the Assessors data are reviewed.
• Board members are informed that failure to adjust the value will result in further action at the Michigan Tax Tribunal on behalf of CTR clients.

Board of Review Response

• Upon receiving the Board of Review decision we will contact you with the results.
• If in the event that the reduction is an amount less than what we feel to be fair, we can discuss further action at the Michigan Tax Tribunal.

Michigan Tax Tribunal

• Our experience has shown that some municipalities refuse to reduce the value at the Board of Review regardless of the quality of evidence provided and offer a small reduction with the concept that the petitioner will just go away. This has proven to be true. Statistics show that 96% of denied petitioners will not proceed to the Michigan Tax Tribunal for many different reasons.
• We will proceed for you. We will not stop until we win.
• The Michigan Tax Tribunal is a Court of Law and the weight of evidence falls on the petitioner. We accept this challenge and will have the evidence to support our claim.
• All of the required forms will be drafted by our office and submitted within the statuary time period. Upon receipt by the State of Michigan a (docket) number will be assigned to each property. You will be able to track the progress of your file at /www.michigan.gov/taxtrib.
• Fees have been increased by 500% for the 2010 Tribunal petitions. Now the fees are $125.00 for requests under $100,000.00 in reduction and $200.00 for a request from $100,000.01 to $500,000.00, $400 for appeals that range from $500,000.01 to $1,000,000, and lastly reduction requests over $1,000,000 a filing fee of $600 is required.