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New Tax Assessment Law Signed by Governor Rick Snyder

Randall P. Whately PLLC July 15, 2022

Governor Rick Snyder recently signed into law proposed legislation from Michigan State Senator Bruce Caswell. The bill aims to protect farmland tax assessments from incorrect inflation.

The bill details what parcels of land may be deemed agricultural in “sales ratio studies” utilized by assessors assigned to determine property tax values. Specifically, the legislation does not include land that does not have legal documents supporting the regular use of the specific property as farmland by the buyer in the sales ratio studies.

According to sources, Senator Caswell felt as though farmers had historically witnessed property tax assessment increases on their land because values had been compared to farmland bought by developers at much heftier prices. Caswell asserts that the new bill helps make certain that assessments on agricultural land are based on the actual market value of other farmland – not the value of agricultural property sold for industrial development, housing or commercial purposes.

Property Tax Assessments, in General

Every February in the state, owners of property are provided with their yearly assessment, which explains the taxable or assessed value on which required payments for the year are based. Most of the time, the assessed numbers are accurate. However, sometimes the amounts are incorrect. The aforementioned bill aims to address some of the inaccuracies and inconsistencies that have been seen in property tax assessments.

What if The Tax Assessment Is Incorrect?

The property tax appeal procedure starts with the issuance of a tax assessment to real property owners within the state’s boundaries. If you believe that you have been over assessed based on an inaccurate appraisal of property value, you have the right to file an appeal. However, the statute of limitations period for contesting an assessment is relatively short. For example, if residential property is in question, the appeal must be initiated right away. The appeal should be filed with the Board of Review within 10 days of receiving the tax assessment.

Nevertheless, when tax assessments are incorrect, they can be excessive and create significant, unnecessary costs. If you would like to uncover more details about the assessment of taxes on your property or the appeal process, it is best to speak with a qualified property tax attorney in the area. A lawyer can help with the appeal process, which could potentially take several months. To find the details associated with your case, meet with a seasoned and experienced legal professional in Michigan.