Dark Stores and “Fair” Or Dark legislation?

Dark Stores and “Fair” Or Dark legislation?

Michigan Capitol Building Dome

If you aren’t already aware of the issue,  the Michigan Tax Tribunal (MTT) has historically used comparable sales of vacant structures in assessing the property tax “dark store assessing theory”which kept the property tax in line with the current value of the property.  Under House Bill  5578 the legislature is attempting to  change that method of determining value to highest and best use of the property when choosing comparables to determine value. This Bill is being sold under the premise of requiring property owners to pay their “Fair” share. My experience has been when the legislature talks fair it is a one way street.

Imagine owning a manufacturing facility that is dark and not making any money and having to pay property taxes as if it was productive?

“Allowing HB 5578 to amend the General Property Tax Act could negatively impact property values for manufacturers across Michigan and do irreparable damage to the state’s business climate,” said Mike Johnston, MMA vice president of government affairs. “The bill would also likely violate Michigan’s Constitutional amendment regarding uniformity of law, thereby creating significant litigation issues for employers.”

What you can do

Click here to access your local House member’s contact information and let them know that Michigan manufacturers oppose House Bill 5578

Rick Williams is managing partner and director of services to Manufacturers for Polk and associates and can be reached at rwilliams@polkcpa.com

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