Michigan has been one of the hardest hit states in the nation as the subprime lending crisis and the fall of the auto industry have triggered massive unemployment, foreclosures and a stagnant local economy. In response, local governments have tried to preserve their tax base revenue: where municipalities were once happy to track the rise of commercial and industrial real estate values, they are now reluctant to assess property at their true cash value.
Many commercial and industrial property owners will receive tax assessments that fail to accurately reflect the value of their vacant retail spaces, substantial deferred maintenance needs or shuttered industrial buildings. At the Schwartz Law Firm in Farmington Hills, Michigan, we have experience in industrial and commercial property tax appeals, and we can help you achieve significant tax savings.
If you have received an unfair property tax assessment on your industrial or commercial property, you have the right to appeal. Contact the Detroit area law offices of Schwartz Law Firm.
State Equalized Value (SEV): What You Need To Know
In Michigan, the State Equalized Value (SEV) is the value that a property tax assessor assigns to commercial and industrial real property each year. Municipalities use the SEV to determine your tax assessment.
With the passage of Proposal A, the taxable value of a property can only increase each year by the lesser of the rate of inflation or five percent. This helped stabilize taxes as property values were rising. But it provides no assistance in the current climate where property values are drastically falling.
Appealing the SEV at the Michigan Tax Tribunal
Commercial and industrial property owners have the right to contest their property taxes. Property tax assessments are mailed out each year, usually in February, and property owners thereafter have a short window of opportunity to appeal the assessment, typically though the Michigan Tax Tribunal.
At Schwartz Law Firm, we represent industrial and commercial property owners for their tax appeals on a contingency basis. We have relationships with valuation experts who use various approaches to demonstrate inflated tax assessments.
Contact the Schwartz Law Firm for experienced guidance on commercial property tax appeals. Because we offer our services for a contingent fee, if you lose the appeal, you don't owe us attorneys fees (although you may owe other costs such as filing or expert fees). If you win, we take our legal fee as a percentage of your tax refund. Because of a backlog, these appeals can sometimes take years to resolve, and may involve several hundred thousands or millions of dollars in refunds.