Metro Detroit — It’s that time of year again —  local residents and business owners are receiving their property tax “notice of assessment.” After five years of a battered real estate market, many suspect that they are being overtaxed on inflated values or properties. Although data suggests that residential home prices are beginning to rise slowly again, and commercial property values are still dropping, the data also suggests that property owners who challenge their assessment are likely to win a reduction. If you own a home or business you will receive a letter in the mail called a “Notice of Assessment.” The deadline to appeal your tax assessment and lower your tax bill is fast approaching. In a matter of weeks, your chance to appeal your assessment will be gone for another year. 

Michigan law requires that every property owner be mailed an annual notice of assessment, which contains the jurisdiction’s assessment of how much your property is worth. This number is reflected in the state equalized value (SEV). The SEV in Michigan is calculated as half of the current market value of your property. Your taxes are then calculated by multiplying the current “millage rate” of your jurisdiction by the taxable value, and this is how your annual tax bill is calculated. Thus, when the market value of your property falls, the taxable value and ultimately your annual property tax bill should likewise fall. Unfortunately, this isn’t always the case.

In recognition of possible inequities in your tax assessment, state legislators have afforded you the right to appeal your assessment. During the appeal, you or your representative have the right to submit documentation proving the current fair market value of your property. The most persuasive documentation is evidence of the recent sales that are most similar to your home. If you are pretty sure you are being over-taxed, filing an appeal is definitely a good idea, and being prepared to make your case is absolutely essential.

Our team, along with our partners at PropTax America provides the full range of tax appeal services. Our professional services include a detailed analysis and appraisal of your property’s value, addressed directly to the criteria used at the board of review and MTT. We have had tremendous results in reducing residential and commercial property taxes, and we are pleased offer a free consultation and a “no-fee guarantee.” 

— Tarek M. Baydoun is an attorney and counselor at The Meridian Law Group, of counsel to Allen Brothers, PLLC, and can be reached at his office phone at 313.962.7777 or by email at tbaydoun@allenbrotherspllc.com.