May 31 Deadline for Businesses to Appeal Michigan Commercial Tax Property Assessments

DETROIT, May 17 /PRNewswire/ -- Michigan business owners concerned that their commercial property tax assessments may be too high must file appeals by May 31, 2010.  An over-valued assessment increases a company's tax burden, something many Michigan businesses simply can't afford in a fragile economy.

Grant Thornton LLP has noted a significant increase in appeals this year on state commercial property assessments, resulting in a backlog of cases at the Michigan Tax Tribunal.

"We don't believe state assessors took the full impact of the recession into consideration when they did 2010 assessments," said Terry Conley, partner at Grant Thornton.  "The result is that many Michigan businesses are faced with inflated tax burdens."

Grant Thornton recommends that all commercial property owners who feel their assessment was overvalued quickly get a credentialed, independent appraiser with experience in commercial valuation.

"An independent appraisal is the biggest influencer for an appeal," said Conley.  "A business owner can get a truncated appraisal that allows them to compare their business to similar properties in the area, which is usually enough for an appeal.  When more proof of overvaluation is necessary we conduct an in-depth assessment that considers everything from infrastructure to landscaping to entryways."

While homeowners face local municipal boards for property appeals, commercial and industrial property assessment appeals are heard by the Michigan Tax Tribunal.  With the rise in the number of businesses challenging their valuations, the Michigan Tax Tribunal is now facing a potential multi-year backup.

"While the appeal process is not for the faint of heart, those who do challenge their assessment have a high rate of success," Conley added.  "On many occasions we have seen the Tribunal willing to compromise on valuations and bring some much needed tax relief to Michigan business owners."

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SOURCE Grant Thornton LLP