Michigan State and Local Tax Updates July 2019

Michigan state law amends the Land Division Act to require conditions

July 10, 2019

Michigan state law has amended the Land Division Act to now require one or both of the following as a condition for approval of any proposed division of a parcel or tract of land under the act: 1) the payment of all property taxes and special assessments due on the parcel or tract, or 2) the apportionment of unpaid property taxes and special assessments by the assessing officer overseeing the division.

 Michigan State Tax Commission properly denied taxpayer’s IFEC application

July 10, 2019

The Michigan State Tax Commission (STC) properly denied a taxpayer’s industrial facilities exemption certificate (IFEC) application under the Plant Rehabilitation and Industrial Development Districts Act (PRIDDA) because a lessor can’t receive a tax exemption under the PRIDDA when the leased property must qualify as “industrial property.” The taxpayer is an owner of an industrial park that it leases to tenants. For the taxpayer to receive the IFEC it requested, it had to establish that its property would constitute “industrial property.” The STC denied the application for an IFEC because the taxpayer was using the property for real estate development. (Dkt. No. 343386)

Michigan State Tax Commission issues equalization director guide to overseeing a reappraisal

July 3, 2019

Local assessing units may choose to conduct a reappraisal to improve their assessing records. When this occurs, it’s important for the equalization director to be involved in the process and ultimately approve the reappraisal in place of an equalization study. Because the reappraisal will be used for setting true cash value, the equalization director must be confident with the methods and valuation concepts used. The guide was created to assist equalization departments in overseeing a local unit reappraisal, but isn’t meant to be a guide on how to conduct the reappraisal itself.


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