Property Tax Notice

Read with Care- Especially for your Appeal Rights! 

During February, property owners should receive annual property tax notices for Michigan properties. If the values are not challenged, they will become final for the 2026 Tax Year, and property taxes are calculated based upon the 2026 Taxable Values. 

Assessed and Taxable Values 

Both values are provided from the previous Tax Year as well as tentative values for this year. The Notice of Assessment also provides a State Equalized Value which will usually equal the Assessed Value. The Assessed and Taxable Values serve different purposes: The Assessed Value equals 50% of what the municipality believes is the property's market value (True Cash Value). If you sell your property, the Assessed Value usually becomes 50% of the sale price for the buyer. The Taxable Value is equal to or less than the Assessed Value. The tax actually paid by the property owner is calculated based on the Taxable Value. Municipalities determine the value of properties each Tax Year as of December 31 of the prior year. The Taxable Value may also increase or decrease if there were significant changes to the property as of December 31 prior to the current Tax Year. 

Principal Residence Exemptions 

Homeowners should also review their PRE (Principal Residence Exemption) status on their Notice of Assessment each year. In Michigan, a property occupied as the property owner's principal residence is exempt from 18 mills. When a property owner owns multiple homes, they may claim the principal residence exemption only on their principal residence. 

Appeals 

Always read the fine print near the bottom. I am confident that your city uses small print so you will ignore that valuable information. Your appeal rights are described there. Depending on the issue, you may appeal to the Assessor, the Board of Review, the Michigan Tax Tribunal, or the Michigan Tax Commission. All appeals are time sensitive. If your appeal is late, it will be dismissed.

 I favor using electronic mail to file appeals. That way, you have proof of delivery. If you appeal via hard copy, send your appeal via certified U.S. mail. Always include support for your appeal. Valuation studies are less expensive than appraisals and will lay out your case. For PRE appeals, your utility bills are usually your best evidence. Residential property owners must attend the BOR. Commercial and Industrial property owners do not have to attend the BOR and may appeal directly to the MTT.    

Attorney Tom Fredericks

(517) 655-4100

tomfredericks84@gmail.com