Michigan commercial real estate owners face second consecutive year of maximum taxable value increases

Taxpayers in Michigan should brace for another year of unprecedented increases in their commercial real estate assessments. The Michigan State Commission has issued the updated inflation rate (multiplier) for 2024, which stands at 5.1%. Under Michigan statute MCL 211.34d, there is a 5% cap on annual increases in taxable value, meaning the annual factor applied to the prior year’s taxable value will be 5% for 2024. This marks the second consecutive year that Michigan’s taxable values will rise by the maximum allowable increase.

It’s important to note that the annual cap calculation does not apply in all situations, such as the year following a property sale or new construction.

Key information for commercial real estate owners

Commercial real estate owners and investors can expect to receive their 2024 Notice of Assessment by the end of February. There are several avenues available for appealing industrial and commercial assessments in Michigan:

• Local march board of review: Taxpayers may appeal to their local board by the dates specified on the assessment notice.
• Michigan tax tribunal (MTT): Alternatively, property owners can appeal directly to the MTT with a deadline of May 31.

Assistance available

We are here to assist in navigating Michigan’s assessing practices and offer tailored appeal strategies. If you need help determining whether your property is valued fairly or to secure the optimal position for an appeal, please reach out as soon as possible.

The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.