Michigan Property Tax Appeals, Classification, and Exemption Information

1. Residential Property. If you received your 2021 residential real property assessment and disagree with the values, you are required to appeal to your local (city or township) board of review first before you are allowed to appeal to the Michigan Tax Tribunal (MTT). Local Board of Reviews meet during the first two (2) weeks in March of each year. The exact dates
And times a listed on your 2021 assessment notice. If you disagree with your local board of review's decision, and want to appeal the decision to the MTTY, you are required to file a Petition with the MTT by July 31, 2021.

2. Commercial/Industrial/Multi- Unit Residential Property/Developmental Real Property/Personal Property. If you disagree with your real property assessment, and you fall into one of the above listed categories, you may, appeal your commercial, industrial, multi-unit (4 or more) residential property, developmental real property and/or personal property tax assessment to the March, 2021 local board of review. You may also appeal directly to MTT. If you elected to appeal to the local board of review first and disagree with the results, or if you elect to appeal directly to MTT, you are required to file your Petition with the MTT by May 31, 2021.

3. TCV, SEV, AV & TV. In Michigan, real property taxes are determined by the Assessor multiplying the Taxable Value (TV) by the mileage rate in the township or city where your real property or personal property is located. Here it is important to know the distinction between True Cash Value (TCV); State Equalize Value (SEV); Assessed Value (AV); and Taxable Value (TV). The TCV (Fair Market Value (FMV)) is determined by the Assessor as of December 31 of the year ( e.g. 2020) preceding the assessment year (e.g. 2021). Pursuant to the Michigan Constitution, AV is 50% of the TCV. The State of Michigan Equalization Department determines the factor to use each for each township and city to be applied against the AV. Normally the factor is 1, resulting in the SEV being the same as the AV. To have your TV reduced on appeal, you are required to prove, usually with a reputable appraisal, that the TCV is lower than the TCV determined by the Assessor and resulted in the AV/SEV being lower than the TV. Being successful on appeal in reducing the AV/SEV but not the TV, will not reduced your real or personal property taxes. Thus, you may have won the battle, but lost the war.

4. Classification. If you disagree with the Assessor's 2021 classification of your real or personal property, you are required to file a petition with the local board of review. If you disagree with the local board of reviews' decision on the classification of your property, you are required to file an appeal of the decision with the Michigan State Tax Commission by June 30, 2021.

5. Principal Residence Exemption (PRE). MCL211.7cc provides for a principal residence to be exempt from the tax levied by local school district for school operating purposes up to 18 mils. To qualify for the PRE, an individual must be a Michigan Resident who owns and occupies the real property as his/her/their principal residence. To claim the PRE, the property owner must file a PRE-Affidavit, form 5565, with the local assessor by June 1, 2021 for the summer and winter, 2021 taxes or by November 1, 2021 for the winter 2021 taxes, Once filed and approved, this affidavit is not required to be filed again unless there is a changed in state residency, ownership and/or use of the property. The assessor may deny upon written notice to the property owner, his/her/their new claim for PRE or the PRE for the current year and preceding 3 years. The property owner may appeal the denial to the MTT's small claims division within 35 days of the denial notice.

6. Poverty Exemption. MCL 211.7a provides a real property tax exemption for principal residence for individuals, by reason of poverty, are unable to pay his/her/their real property taxes. The application must be filed with the township mor city on or after January 1 of each year and must be filed with the local board of review where the principal residence is located.

7. Other Property Tax Exemptions. Religious, 501©(3) property, Qualified Agricultural Property; Wildlife Risk Mitigation Action Plan, Disabled Veterans, Senior and Disabled Housing, Supportive Housing Exemption, Neighborhood Enterprise Zone, Commercial Facilities; Commercial Rehabilitation, Charitable Nonprofit Housing, Industrial Facilities, New Personal Property located in eligible distress communities, Nonferrous Metallic Minerals Extraction Severance Tax, Obsolete Property Rehabilitation, Qualified Forest Program, Renaissance Zone, Tool and Die Recovery Zone, Water {Pollution Control, Air Pollution Control and Brownfield Redevelopment authority.