Large Uptick in Commercial Property Tax Assessment Appeals, Predicts Grant Thornton

Michigan business owners concerned that their commercial property tax assessments may be high must file appeals by May 31, 2010. In fact, many have already started to do so, according to tax and accounting firm Grant Thornton LLP, which has noticed a significant increase in appeals this year on state commercial property assessments that has resulted 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.”

The tax and accounting firm 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 him to compare his business to similar properties in the area, which is usually enough for an appeal.” When more proof of overvaluation is necessary, Conley’s firm conducts an in-depth assessment that considers everything from infrastructure to landscaping and entryways.

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