Michigan Local Leaders Say Property Tax Appeals are Common, Disagree with 'Dark Stores' Assessing

Michigan Public Policy Survey, 2016

12 Pages Posted: 28 Oct 2016

See all articles by Debra Horner

Debra Horner

University of Michigan at Ann Arbor - Gerald R. Ford School of Public Policy

Thomas M. Ivacko

University of Michigan at Ann Arbor - Gerald R. Ford School of Public Policy

Sarah Mills

University of Michigan at Ann Arbor - Center for Local, State, and Urban Policy

Date Written: October 26, 2016

Abstract

The issue of property tax appeals has been increasingly important in Michigan recently as “big box” stores (e.g. Lowe’s, Costco, etc.) have been able to significantly decrease their taxes by arguing property assessments should be based on the value of vacant comparable buildings rather than on their “highest and best use.” This is known as “dark stores” assessing, which has resulted in significant cuts in property tax revenue for some local governments. This report presents Michigan local government leaders’ views on the impact of tax assessment appeals — for big box stores and other types of property — in their jurisdictions, including effects on local fiscal health. It also provides local leaders’ opinions on decisions made by the Michigan Tax Tribunal, including about “dark stores” appeals policies. These findings are based on statewide surveys of local government leaders in the Spring 2016 wave of the Michigan Public Policy Survey (MPPS).

Keywords: Local government, property taxes, public finance, dark stores

Suggested Citation

Horner, Debra and Ivacko, Thomas M. and Mills, Sarah, Michigan Local Leaders Say Property Tax Appeals are Common, Disagree with 'Dark Stores' Assessing (October 26, 2016). Michigan Public Policy Survey, 2016, Available at SSRN: https://ssrn.com/abstract=2859618 or http://dx.doi.org/10.2139/ssrn.2859618

Debra Horner

University of Michigan at Ann Arbor - Gerald R. Ford School of Public Policy ( email )

735 South State Street, Weill Hall
Ann Arbor, MI 48109
United States

Thomas M. Ivacko (Contact Author)

University of Michigan at Ann Arbor - Gerald R. Ford School of Public Policy ( email )

735 South State Street, Weill Hall
Ann Arbor, MI 48109
United States

HOME PAGE: http://closup.umich.edu

Sarah Mills

University of Michigan at Ann Arbor - Center for Local, State, and Urban Policy ( email )

735 South State Street, Weill Hall
Ann Arbor, MI 48109
United States
734-615-5315 (Phone)

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