COVID-19 Pandemic and its Impact on Property Tax Assessment and Appeals

Real property owners in Michigan may wonder what impact COVID-19 has had on their property tax assessments. According to the Tax Policy Center, past pandemics have caused housing prices to decline, although not to the same low as income and sales taxes. Still, since most property owners will receive their assessments soon, now is the best time to look closely at the assessment and consider an appeal if warranted.

Michigan Property Assessment

Generally speaking, the rule in Michigan is that property is assessed at 50 percent of the fair market or true cash value of the property on tax day (Dec. 31, 2020).

If a Michigan property owner deems that their assessment is higher than expected, they may wish to consider reducing the value through a tax appeal. Property owners could receive significant savings through property tax appeals.

To prepare for a property tax assessment, the property owner should do the following:

• Review how the municipality in which the property is located assesses value, as each community is different.
• Hire a professional appraiser to determine the property’s fair market value.
• Compare property values for properties located nearby.

The deadline to file tax appeals for commercial or industrial properties with the Michigan Tax Tribunal is June 1, 2021.

For residential appeals, property owners should first appeal to the local jurisdiction’s Board of Review, which meets in March. The deadline to file with the Michigan Tax Tribunal is Aug. 2, 2021, for residential properties.

Help is available

The attorneys at O’Reilly Rancilio are available to answer your questions regarding the law in the COVID-19 era. For information, please visit our website or call 586-726-1000.