By: Michael Cole | Fahey, Schultz, Burzych, Rhodes
Q I own my hospitality property, but in 2020, we have not been able to generate the revenue we expect from this property. Can we do anything about our property taxes?
A: That is a great question! And the answer is… maybe! There are few things as certain as taxes and unfortunately, this year is no exception. Property owners across the State will soon receive notices regarding their 2021 property tax assessment. For income-producing commercial properties, such as restaurants and hotels, it is important to understand that property values take into account the financial picture from the previous 12 months. In that regard, because 2020 was a unique and tumultuous year on businesses, the impact of the COVID-19 pandemic could have an unprecedented effect on property values. It is more important than ever to be aware of your incoming tax assessment notice and to stay on top of your tax deadlines.
When you receive your tax assessment notice, make sure to review it closely. The notice will specifically say that it is a not a tax bill, but will contain important tax information. The notice will include the current and previous taxable and assessed values, property parcel number, whether there was a recent transfer of ownership of the property, any exemptions applicable to the property, along with additional information about the property.
It will be crucial to compare the information and values on the notice with financial documents and other information you have about the value of your commercial property as of December 31, 2020. For example, if you experienced a decrease in revenue at your commercial property because of mandated closures and other events related to the COVID-19 pandemic and you believe that the true market value of the property is less than the taxable value listed on the notice, there may be a reason to speak with a professional about the accuracy of values stated on the notice.
Importantly, don’t wait to speak with a professional if you think your 2021 property tax assessment notice is inaccurate. The appeal process and deadlines move quickly. The local boards of review meet in March, and the annual deadline for filing an appeal for commercial properties to the Michigan Tax Tribunal is May 31, 2021. Depending on the assessment classification of the property, you may be required to challenge the assessment at the local board of review before filing with the Tax Tribunal. There are no exceptions to the deadlines or filing requirements, so please act promptly.
Q I own my hospitality property, but in 2020, we have not been able to generate the revenue we expect from this property. Can we do anything about our property taxes?
A: That is a great question! And the answer is… maybe! There are few things as certain as taxes and unfortunately, this year is no exception. Property owners across the State will soon receive notices regarding their 2021 property tax assessment. For income-producing commercial properties, such as restaurants and hotels, it is important to understand that property values take into account the financial picture from the previous 12 months. In that regard, because 2020 was a unique and tumultuous year on businesses, the impact of the COVID-19 pandemic could have an unprecedented effect on property values. It is more important than ever to be aware of your incoming tax assessment notice and to stay on top of your tax deadlines.
When you receive your tax assessment notice, make sure to review it closely. The notice will specifically say that it is a not a tax bill, but will contain important tax information. The notice will include the current and previous taxable and assessed values, property parcel number, whether there was a recent transfer of ownership of the property, any exemptions applicable to the property, along with additional information about the property.
It will be crucial to compare the information and values on the notice with financial documents and other information you have about the value of your commercial property as of December 31, 2020. For example, if you experienced a decrease in revenue at your commercial property because of mandated closures and other events related to the COVID-19 pandemic and you believe that the true market value of the property is less than the taxable value listed on the notice, there may be a reason to speak with a professional about the accuracy of values stated on the notice.
Importantly, don’t wait to speak with a professional if you think your 2021 property tax assessment notice is inaccurate. The appeal process and deadlines move quickly. The local boards of review meet in March, and the annual deadline for filing an appeal for commercial properties to the Michigan Tax Tribunal is May 31, 2021. Depending on the assessment classification of the property, you may be required to challenge the assessment at the local board of review before filing with the Tax Tribunal. There are no exceptions to the deadlines or filing requirements, so please act promptly.
Importantly, don’t wait to speak with a professional if you think your 2021 property tax assessment notice is inaccurate. The appeal process and deadlines move quickly. The local boards of review meet in March, and the annual deadline for filing an appeal for commercial properties to the Michigan Tax Tribunal is May 31, 2021. Depending on the assessment classification of the property, you may be required to challenge the assessment at the local board of review before filing with the Tax Tribunal. There are no exceptions to the deadlines or filing requirements, so please act promptly.
If you have any questions or are concerned your tax assessment notice may be inaccurate, please contact a professional and don’t hesitate to watch our webinar available to members on the MRLA’s website.
If you have any questions or are concerned your tax assessment notice may be inaccurate, please contact a professional and don’t hesitate to watch our webinar available to members on the MRLA’s website.
