Publications for Property Tax

Under various statutes, certain types of property, owned by certain entities, and used for certain purposes, are exempt from paying property taxes in Michigan. But there is an exception to this exemption meant to address situations where the property is exempt based on ownership, but is leased to a non-exempt entity.

Property tax exemptions can have a big impact on local communities. Although exempt properties do not generate tax revenue for local units or tax-sharing units (like schools and libraries), exempt properties still use tax-funded services, like police and fire protection. An increase in tax-exempt properties can in turn increase the strain on local budgets.

As I discussed in the first article in this series addressing property tax exemption issues in Michigan, property taxes account for billions of dollars for essential community services such as schools, public safety departments, transportation, infrastructure, and governance for local residents and businesses.

Property tax revenue is the most important source of funds for operations in most Michigan municipalities. It generates billions of dollars a year to pay for things like schools, public safety departments, transportation, infrastructure, and governance for local residents and businesses.

In an Order dated October 20, 2017, the Michigan Supreme Court denied an application for leave to appeal filed by Menard, Inc. in a closely watched “dark store” property tax appeal. 

In an Opinion issued on June 28, 2017, in Baruch SLS, Inc v Tittabawassee Township (Sup. Ct. No. 152047), the Michigan Supreme Court clarified the third prong of the six-part test set forth in Wexford Medical Group v City of Cadillac, 474 Mich 192; 713 NW2d 734 (2006), which governs charitable institutions seeking an exemption from real and personal property taxes under MCL 211.7o and MCL 211.79.

Earlier this month, the Governor signed into law a series of bills, the purpose of which is to improve the efficiency, accessibility and effectiveness of the Michigan Tax Tribunal.

A recent Michigan Supreme Court decision has held as unconstitutional a provision of Michigan statute which allowed assessors to treat public-service improvements, such as water, sewer or utility services, as "additions" for purposes of calculating taxable value.

A recent published Michigan Court of Appeals case narrowed the State Tax Commission’s interpretation of when the transfer of a joint tenancy ownership interest results in the uncapping of a property’s taxable value.