Businesses, homeowners appeal Michigan tax bills as they seek relief in difficult economy

Businesses, homeowners appeal Michigan tax bills

DETROIT — A record number of Michigan property owners are appealing their property tax assessments as small-claim homeowners and high-stakes businesses seek relief in a difficult economy.

The wave of appeals to the Michigan Tax Tribunal could decimate the budgets of local governments. The deadline for larger appeals above $20,000 is Tuesday, the Detroit Free Press reported.

“Since Proposal A was adopted, this is the highest we’ve ever been,” said Patti Halm, chairwoman of the Tax Tribunal. Proposal A, passed by voters in 1994, limited the annual increase of taxable values.

New case filings more than doubled between 2006 and 2009, and the current case load is 32,000 for claims of less than $20,000 and 11,100 for larger cases. The appeals also could cut funding for schools, parks and libraries.

More than 11,000 commercial and industrial property owners are waiting to have their cases heard. Appeals can take several years to be heard, but property owners who succeed are entitled to refunds of any excess taxes paid, plus interest.

Some legislators want to speed the appeals process so property owners get swifter word on decisions.

“These waits are unacceptable,” said state Rep. Kevin Daley, R-Attica, sponsor of a bill to require a hearing within one year of an appeal.

Others, however, say arbitrary deadlines could trample due process rights.

For many commercial and industrial property owners, appealing tax assessments is almost required to control costs, said David Nykanen, a Birmingham real estate lawyer who specializes in tax appeals.

“If your neighbor does it and gets a reduction, he now has a competitive advantage over you,” Nykanen said. “My case load intake the past two years has been at record levels.”

Information from: Detroit Free Press, www.freep.com