Michigan property-tax law permits annual increases in a property's taxable value, but generally they are limited to the lesser of 5% or the rate of inflation as determined annually by the State Tax Commission. Taxable value is limited to the lower of the assessed value or the prior year's taxable value plus the inflation rate.
For the 2004 tax year, the commission determined the inflation rate to be 2.3%. Taxpayers, therefore, generally can expect taxable values to increase by 2.3% or less for 2004. Certain exceptions to the 2.3% limit exist, including additions as defined by statute.
Taxpayers must review their 2004 assessment notices to verify that the 2004 taxable value rises to a figure no more than 2.3% higher than the 2003 value. If the value increased by more than 2.3%, you should consult your tax attorney to review whether or not the law permits the increase.
Mark A. Burstein Honi
gman Miller Schwartz and Cohn LLP
mburstein@honigman.com
American Property Tax Counsel (APTC)
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