Michigan Justices Reopen Law Firm’s Property Tax Cap Dispute

March 25, 2026, 3:54 PM UTC

A law firm convinced the Michigan Supreme Court on Wednesday to revive its case arguing that a new roof doesn’t count as an “addition” that would remove the cap on property tax increases.

Knier, Powers, Martin & Smith LLC asked the justices to overturn an appeals court ruling that putting a new roof on its office building was an “addition” that lifted the 5% limit on property value increases under the Michigan Constitution. The ruling upheld Bay City’s decision to raise the building’s value to $181,000 for 2022 from $161,000 the previous year—an increase of more than 12%.

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