Michigan High Court Agrees to Hear Arguments on Property Tax Cap

The Michigan Supreme Court agreed to hear oral arguments over whether to hear a case arguing the state legislature impermissibly weakened a constitutional provision to limit increases on property taxes.

Michigan’s constitution limits increases in a property’s taxable value to an annual cap of 5% or the inflation rate from the preceding year, whichever is lower. But increased value from an “addition” to a property is exempt from the cap. Knier, Powers, Martin & Smith LLC argues that the new roof on its office building isn’t an “addition” under the Michigan constitution, so Bay City shouldn’t have raised the building’s ...