Commercial & Business Property
Michigan Commercial Property Tax Appeals
Office, retail, industrial, multifamily, and special-purpose buildings in Michigan are frequently over-assessed. Here's how commercial assessments work, the deadline to challenge yours, and what it takes to win.
How commercial is assessed
Michigan taxes on Taxable Value (capped at the lesser of inflation or 5% annually) separate from State Equalized Value (50% of market). Taxable Value 'uncaps' to market on a transfer of ownership.
Taxable Value capped annually; uncaps to 50%-of-market SEV at sale.
Burden of proof
The property owner (or their authorized agent) bears the burden of proving the assessment exceeds market value. The assessor's value is presumed correct until rebutted with credible evidence.
Key to a Michigan commercial appeal: Uncapping on sale
A recently purchased commercial property uncaps to market and can spike — the prime appeal trigger. March Board of Review first, then the Michigan Tax Tribunal (commercial deadline May 31).
Michigan Filing Deadline & Where to File
File With
Board of Review, then Michigan Tax Tribunal
Deadline
Board of Review: first 2 weeks of March. Tax Tribunal: July 31 (residential)
Window Opens
Assessment notices in February; Board meets in March
Typical Duration
2–6 months (BOR); 12–24 months (Tax Tribunal)
Michigan has Taxable Value (capped at inflation or 5%, whichever is less) separate from State Equalized Value. Uncap happens at sale. PRE (homestead) exemption saves ~18 mills.
How commercial value is proven
Income-producing commercial property is usually valued by capitalizing net operating income (NOI ÷ market cap rate). The strongest appeals come with a clean rent roll, a trailing-12-month operating statement, current vacancy, and market cap-rate support. Where the property is owner-occupied or special-purpose, the cost and sales-comparison approaches carry more weight.
Evidence that wins a commercial appeal
- Current rent roll and a trailing-12-month operating statement
- Actual vacancy and collection loss (vs the assessor's stabilized assumption)
- Market capitalization rate support for the property type and submarket
- Recent arm's-length sales of comparable commercial buildings
- Evidence of physical, functional, or economic obsolescence
- Any change in use, tenancy, or condition since the assessment date
How to appeal a commercial assessment in Michigan
- 1Pull the assessment — confirm the assessed value, the assessment ratio/class, and how the assessor derived it (income, cost, or sales).
- 2Build the valuation — capitalize actual net operating income and gather comparable sales to establish market value as of the assessment date.
- 3File before the deadline — submit to Board of Review, then Michigan Tax Tribunal by Board of Review: first 2 weeks of March. Tax Tribunal: July 31 (residential), with the authorization signed by someone able to bind the owning entity.
- 4Present at the hearing — commercial hearings are evidence-driven; a clean income approach and credible comps carry the day.
Think your Michigan commercial property is over-assessed?
We pull the assessment, build the income-approach case, and file the appeal. Fee: 20% of first-year savings — only if we win. Nothing upfront, and the reduction can hold for years.
Assessment ratios, class rates, and deadlines in Michigan are set by statute and can change year to year, and often vary by county or municipality. Verify current figures and dates with your county assessor or clerk of the board before filing. This page is general information, not legal or tax advice. TaxedFairly is a product of WebLab LLC.