Immediate review of Michigan property tax notice of assessment recommended
The Michigan personal property tax return filing deadline has passed and local assessors are now processing returns and issuing assessment notices. Taxpayers have or will be receiving a Notice of Assessment indicating the taxable value and classification for each personal property tax parcel, as well as each real property parcel.
Each personal property notice of assessment should be reviewed for accuracy by comparing the assessed taxable value to the taxable value calculated based on the information reported on the personal property tax return, regardless of whether form 632 or the new form 5278 for eligible manufacturing personal property was filed. In addition to verifying the taxable value, the property classification should be confirmed since industrial personal property receives up to a 24 millage rate reduction compared to the standard millage rate, and commercial personal property receives up to a 12 millage rate reduction.
For those taxpayers that filed form 5278 claiming the exemption for eligible manufacturing personal property, extra care should be used when reviewing the notice of assessment as the more complex reporting associated with the new manufacturing exemption will cause returns to be more susceptible to processing errors. Documented errors have already been discovered in some local taxing units.
The review should be done as soon as possible upon receipt of the notice of assessment. If an error is detected, taxpayers have a limited time to file a protest. Disputes regarding the following items must be appealed to the March board of review:
- Property classification
- Denial of the eligible manufacturing personal property exemption
- Denial of the small business exemption
Filing a protest to the March board of review for a property classification dispute or denial of the exemptions noted is necessary to preserve a taxpayer’s right to further appeals.
A dispute regarding the taxable value for a parcel classified as industrial personal or commercial personal may be appealed to the March board of review, or alternatively by petition to the Michigan tax tribunal by May 31.
The local board of review is required to meet on the second Monday in March, unless the local governing body officially adopts a starting date of Tuesday or Wednesday following the second Monday in March. Therefore, the board of review for all local units will begin between Monday, March 14, 2016, and Wednesday, March 16, 2016. Details regarding the March board of review for a specific local unit are typically included in the notice of assessment.
If you have any questions regarding your notice of assessment or appeal options, please contact your tax advisor.
The information provided in this alert is only a general summary and is being distributed with the understanding that Plante & Moran, PLLC, is not rendering legal, tax, accounting, or other professional advice, position, or opinions on specific facts or matters and, accordingly, assumes no liability whatsoever in connection with its use.