The 2024 Michigan property tax assessment notices have been released, and taxpayers with properties that did not transfer ownership in 2023 should expect a 5% increase to their taxable values. This increase is supported by Proposal A legislation, which was passed by Michigan voters in 1994, and includes a cap on increases in taxable value for property tax purposes. The cap limits the annual increase in taxable value for each property to the lower of the rate of inflation or 5%. Tax year 2024 is only the second time the annual increase hit the full 5%.
Under Proposal A, a property’s taxable value is equal to its capped value or its assessed value, whichever is less. The assessed value is determined based on the property’s true cash value (market value), subject to certain limitations and adjustments. Exceptions to Proposal A limitations are new construction or a change in ownership. Therefore, if a property transferred ownership in 2023, the taxable cap value will be removed for tax year 2024.
Properties classified as commercial or industrial real estate can be appealed directly to the Michigan Tax Tribunal (MTT). Those classified as residential must be protested first to the local Board of Review (BOR) before filing to the MTT. The BOR dates are listed on the property tax assessment notice, and the state of Michigan’s deadline to appeal to the MTT is Friday, May 31, 2024.
The experts at Ryan can assist taxpayers with reviewing their 2024 assessments and navigating the Michigan property tax appeal process.
TECHNICAL INFORMATION CONTACTS:
Jennifer Ivanelli
Principal
Ryan
312.980.1137
jennifer.ivanelli@ryan.com
Shawn King
Principal
Ryan
312.980.1127
shawn.king@ryan.com
Sarah Belloli
Director
Ryan
313.479.3470
sarah.belloli@ryan.com
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.