How to Fight Property Taxes in the State of MIchigan

How can I lower my property tax? Why do my neighbors pay less taxes than we do? These two questions epitomize the frustration most often heard by the Board of Review for property taxes in St Ignace Township, Michigan. Our three members sit with the township tax assessor in public meetings designed to arbitrate the disputes at the lowest level, within our own neighborhood. As Americans struggle with convoluted income tax law, Michigan property owners begin the year with tax assessments in the mail, too. Although complicated at first glance, the board sits ready and available to explain the numbers and help resolve conflicts. Come take a peek at the inside workings of an interesting year of the Tax Board meetings in St Ignace Township in rural Upper Michigan.

I spotted a small notice in our local St Ignace News, highlighting a vacancy in the township's Tax Review Board back around 2005. I was thrilled when the Dale Nelson, our township supervisor and assessor, notified me I had won the slot! Dale immediately reassured me I was the only applicant for the job. The first step is a day of training, at either the basic or advanced level. The Michigan Townships Association supervises an outstanding program of formalized Board of Review Training, scheduled in February throughout the state. In my county, two large conference rooms at the Little Bear East Arena in downtown St Ignace are filled to capacity with assessors and board members ranging from first time trainees to people like my neighbor Angie Bunker, who's seen this cycle for decades.

Barbara Van Gelderen is a dynamic and seasoned Tax Assessor and Supervisor from "down below" the Mackinac Bridge in Allegan County, Michigan. She's a familiar face as our primary instructor the past few years. Does she likes the change from the southern tier of Lower Michigan, even in the deepest part of winter? Most of our seasonal businesses hibernate until spring and the travel can be treacherous, but she continues to return to teach us every February. Barbara is energetic, upbeat, and jocular, with her prized fishbowl and candy bar trick to highlight a key part of "the show." Three Board of Review members are like the Three Musketeers candy bar, with meetings held in a fishbowl, covered by Michigan's Open Meetings Act. In recent years, our instructor stressed the Michigan State Tax Commission's 14 point review process, by giving specific examples of problems found in other townships. Barbara joked that every year she works to prepare us, and then the inspectors turn to different areas of interest. As an Air Force veteran, it reminds me of the old "IG Teams" sent off to visit us in remote overseas tours. Some random colonel, who held your future in his hand, greeted us with some variation of, "I'm the Inspector General, and we're here to help you." Months later, we were still scrambling to fix all the "helpful hints" they reported back to higher headquarters.

Tax Review Board training is well worth the investment. The classes are fast-paced, well researched, and professionally presented. Instructors build on past training, emphasize the basics for beginners, and allow plenty of group interaction and questions. Mark Eby is our township's board chairman, and also quite visible in the community as owner of Castle Rock, a popular tourist destination. Mark's a dedicated, methodical and numbers-oriented professional, and he's quick to ask questions and voices concerns over ambiguous material. This year, we were quick to clarify a need to document our positions with official tax forms and Oath of Office material. In 2010, forestry and agricultural exemptions received additional attention. Previously, we learned to accept requests for a private review of financial information related to Poverty Exemptions. Instructor Barbara is quick to point out any mistakes and this year she stressed that Poverty Exemptions must be reviewed in the open forum. It's obvious she takes her job very seriously and wants to have her students do well in any state inspections. Be sure to look for my picture of Barbara with her valued administrative assistant, Shelley Tucker. Shelley is the one who gets all our paperwork together, sets up the overview projector, and coordinates on the PA system glitches. We all got a laugh when it was finally diagnosed by one of the students that her cell phone vibration was short-circuiting the microphone during class. It's definitely a teamwork-oriented group!

This year, our Board of Review (BOR) meetings took place on March 8, 15, and 16, 2011. The first is an Organizational Meeting, focused on paperwork and routine administration requirements. We are sworn in by the Township Supervisor, review any applications by mail, talk about our training sessions, and work out possible conflicts. Our BOR is held at the St Ignace Township hall, near Carp River, in a remote location. As a result, we also coordinate our pot luck lunch and supper meals. For example, we set a 15 minute time limit, in compliance of a key point highlighted during class, with a caveat allowing extensions as needed. By law, the meetings are held during daytime and evening hours, written appeals can be submitted, and paperwork must follow state enforced guidelines. Our township is fortunate in having the added services of the Township Supervisor's son, Nick Nelson. A talented computer expert, Nick is also highly trained in property assessment and tax law. During the board meetings, he produces property cards itemizing everything from basic structures and measurements to existing wells, septic and electrical hook-ups.

This year, only one taxpayer sought advice. Concerned about a hunting camp held by a group of sportsmen and hunters, one gentleman ventured north to clarify tax amounts specified for roads. In this case, the camp was located on a seasonal road, not maintained in the winter months. Because the property is inaccessible during winter months, the group felt their taxes should be cut. After processing the required paperwork and eventually discovering his concerns, we were able to explain that the road tax is associated with all public roads in the area, not just the small two track out to his hunting camp. Later on, my husband Warren told me he found the discussion fascinating. He happened to come in at the start of the appeal, and shared the property owner's same confusion in thinking the tax was for the sole purpose of his own adjacent road's upkeep. Every year, we learn more about the intricate nature of property taxes and exemptions.

In previous years, the most common complaints center around big increases in taxes after sales, transfers, or name changes on the tax roll. This is one of the easiest jobs, and the explanation is related to the "uncapping" of property taxes and Michigan's Proposal A of 1978. Be sure to check out my links for specific information. My best advice is to seek out your local tax review board. Our Township Supervisor and tax assessor, the same Dale Nelson who hired me, is quick to offer up a copy of the information cards he holds on record. Many people wonder if the taxes are assessed with guess work and a personal agenda; actually, the law strictly limits what the assessor can levy. Factors are itemized and include adjacent waterfront, highway frontage, and square footage of buildings. Mistakes do happen, are quickly resolved, and the best way to recover money is finding them early! Beyond the local level, citizens can appeal to the State of Michigan Tax Tribunal for further review.

In closing, I'll emphasize the fact that being a member of the Board of Review is fulfilling and valuable, both educationally and on a practical basis. I've enjoyed new friendships and communication with my fellow township neighbors and we've been able to save people money or resolve issues every year. As a Michigan resident, I'm doubly rewarded in that I am able to contribute in a small way to effectively running our local township. As a result of this job and the experiences of my co-workers, I ended up also volunteering to train as an Election Inspector and work in the same township hall during local elections. Please take the opportunity to work for your local government or at least try to get to the "tax man" in person. Most of our "customers" only wish they'd have ventured to the township hall sooner. You won't always see your taxes cut, but at least understand exactly how and why they're assessed!

I'd like to dedicate this article to Gloria Gold of St Ignace Township, who retired a few years after I joined the board. Gloria lives north of me and I inherited her job as secretary for the BOR. I miss her wry sense of humor, experience, and the many outstanding venison-based dishes she brought during the meetings.

Property Tax Appeals Link

Link to Board of Review handbook