NREI: The Top 10 Cities with the Highest Commercial Property Taxes

Written on September 06, 2017 at 02:41 PM
As property values continue to recover or  even surpass values  achieved at the peak of the past cycle in 2006 and 2007, rising property tax bills shouldn't come as a surprise to landlords. While some jurisdictions have aggressively increased values to keep up with market recovery and increase revenue, a lag time in reassessment periods in other jurisdictions is causing some property tax bills to skyrocket. Jurisdictions that  reassess values every two or three years rather than annually are playing catch-up and making significant property value increases.
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Categories: Michigan, South Carolina, Minnesota, Real Property, Wisconsin, Indiana, Illinois, Iowa, New York, Connecticut

Michigan House Advances Big Box Store Tax Assessment Legislation

Written on June 13, 2016 at 03:27 PM

A plan to prevent big box stores from paying less in property taxes may be gaining steam in the Legislature after the House approved the measure, which supporters say will lead to fairer tax evaluations. Supporters say the measure is supposed to ensure property taxes are assessed more equitably for large retail stores. It passed the House by a wide margin despite opposition from big business interests such as the Michigan Chamber of Commerce and the Michigan Retailers Association. Opponents say the legislation would complicate the tax appeal process, increase the cost of appeals and violate a state constitutional requirement that property be valued uniformly.

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Categories: Michigan, Big Box, Retail

Urgent Filing Window: Michigan Eligible Manufacturing Personal Property Exemption

Written on May 12, 2016 at 02:51 PM

Major changes in Michigan Business Personal Property law provide an opportunity for manufacturers to significantly reduce their property taxes. The Michigan Department of Treasury indicates that many manufacturers failed to qualify for the new Eligible Manufacturing Personal Property (EMPP) Exemption due to the complexity of filing.

If you have Industrial Facility Exemption (IFT) returns that have been rejected, the IFT will be revoked if not corrected by the May 31, 2016 deadline. There is still time to file the required forms, but you must act quickly.  If you are a manufacturer and are unsure of your exemption status, please contact us today to see how we can assist.

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Categories: Michigan, Personal Property, Industrial & Manufacturing, Paradigm Info

More Than 100,000 New Hotel Rooms Expected in U.S Cities This Year

Written on January 11, 2016 at 01:08 PM

The hotel building boom continues in the U.S., as a total of 103,230 rooms within 865 hotels are currently under construction and scheduled to open through the course of 2016, according to hotel research firm STR. The industry continues to break records on both the demand and revenue side, and developers are boosting investments to keep up with the surging demand. The 1.5% uptick in rooms opening this year is still below the long-term annual average of 1.9%, says Jan Freitag, STR’s senior vice president of lodging insights. But building activity has dramatically increased, with 21% more rooms under construction than a year ago.

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Categories: Michigan, Nevada, Construction, Real Property, District of Columbia, Hospitality, Hotels, Illinois, Massachusetts, Texas, New York, California, Florida

Michigan Lawmakers Debate Data Center Tax Exemption Bills

Written on December 02, 2015 at 05:51 PM

Today the Michigan House Tax Policy committee advanced legislation that would provide large tax breaks to cloud-computing data center companies. The tax exemptions were requested by Nevada-based company Switch, who announced it will convert the former Steelcase pyramid into a data center that will result in a $5 billion investment and 1,000 new jobs over the next 10 years if the series of bills are approved. Three competing bill packages have been introduced in the House and Senate, and each would exempt "data centers" from sales, use and personal property taxes. It also would exempt "co-located businesses," or clients of the data centers, from those taxes. Some of Switch's clients include companies like Amazon, eBay and Intel.

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Categories: Michigan, Real Property, Data Centers

Michigan Bills Target Assessment Practices for Big Box Stores

Written on November 05, 2015 at 01:50 PM

Michigan lawmakers from both parties introduced bills this week aimed at stopping a common valuation method they say gives “unfair property tax breaks” to big box stores. According to the Detroit Free Press, local governments across the state say they are losing millions of dollars in taxes because big box stores are unfairly getting their assessments slashed by using the "dark store" theory in appeals. However, big box store owners uphold this is an appropriate valuation method, arguing that since they wouldn't sell their stores to other retailers, assessors should look at sales of stores that have gone out of business and are vacant, since that's the only way they would ever come on the market. The 'dark store' approach to determining value has been upheld by the Michigan Tax Tribunal and state courts.

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Categories: Michigan, Big Box, Real Property, Retail

Detroit Office Market on Strong Path Toward Resurgence

Written on October 06, 2015 at 09:46 AM

Once the worst performing major market in the country, Detroit's office market is finally gaining momentum. Amazon and Lear Corp. both announced plans to expand in the city’s Central Business District, and will bring with them an influx of high-tech workers. According to the National Real Estate Investor, Southfield, Mich.-based automotive supplier Lear Corp. has purchased a historic 50,000-sq.-ft. building at 119 State St., and Amazon is adding multiple floors to its existing leased space at 150 W. Jefferson. Michigan is a rapidly growing technology corridor, and Detroit is enjoying the same movement that’s happening in most major U.S. markets, with Millennials wanting to live, work and shop in a major urban area.

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Categories: Michigan, Office, Real Property

Michigan Lawmakers Push to End Property Tax Discounts for Big Box Stores

Written on August 11, 2015 at 07:54 AM

A bipartisan group of Michigan lawmakers say they’ll make a major push in the fall to end special 'property tax discounts' given to big box stores. State Rep. John Kivela (D-Marquette) says when big box stores appeal their property tax assessments, the Michigan Tax Tribunal will treat the buildings as if they’re vacant in order to give the stores a big discount. Kivela says a lot of the stores are able to reduce their taxable value from from 60 to 70 dollars a square foot to 25, but the same rules aren't being applied to locally-owned businesses.

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Categories: Michigan, Big Box, Real Property, Retail

Michigan's Prop 1 'Opens Door' to Further Tax Reform

Written on September 15, 2014 at 09:20 AM

Despite Michigan voters overwhelmingly approving Proposal 1 last month, which phases out the business personal property tax, business lobbyists are pushing for further business tax reform. While Prop 1 was a major accomplishment for the state, many people don't realize that large non-manufacturing companies, including major retailers such as Meijer Inc., big legal and accounting firms and utilities, were not covered by Proposal 1 and will continue paying the tax on their office equipment. That will generate roughly $400 million a year for local governments, according to an estimate from the state House Fiscal Agency. The new legislation opens the door to further reform, as those business not included in Prop 1 will eventually want relief from the tax as well.

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Categories: Michigan, Personal Property, Big Box, Industrial, Real Property, Retail

Michigan Court of Appeals Denies Request to Disqualify Property Owner’s Expert

Written on September 04, 2014 at 08:33 AM

By Michael Clary, Senior Managing Consultant, Detroit

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Categories: Michigan, Real Property, Strip Centers, Retail, Paradigm Info

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