Spotting Opportunities: 2025 Tax Appeals for U.S. Property Owners

In much of the country, the first half of the year is critical for property tax appeals. Many states have begun issuing assessment notices, signaling the start of the appeal process. Property owners should closely review their valuations and act promptly if they suspect overvaluation or classification errors.

Signs That You May Need to Appeal Your Property Taxes

• Significant Tax Increases – Since the pandemic ended, many states have seen multi-year jumps in values despite market trends.
• Rising Cap Rates and Declining Market Values – As cap rates increase, property values decline. If your tax assessment does not reflect these trends, an appeal may be warranted.
• New Acquisitions and Unexpected Tax Increases – Buyers of properties should conduct thorough tax due diligence before purchasing, as reassessments can significantly raise taxes post-acquisition.
• Vacancies and Revenue Declines – High vacancy rates may indicate that your property is assessed based on outdated income projections. If occupancy levels are down but taxes remain high, consider an appeal.
• Reconstruction and Renovations – Large-scale improvements may unjustifiably inflate assessor determined values, creating opportunities for appeals.

Key Appeal Deadlines Nationwide

Appeal deadlines vary by state, with many requiring filings within the first half of the year. In Michigan, the statutory deadline for valuation appeals falls on May 31, 2025 (extended to June 2 in 2025 due to the weekend). Owners in other states should verify deadlines and consult tax professionals to ensure timely filings.

Why Strategic Property Tax Planning Matters

Recent appellate decisions highlight the need for proactive property tax planning. Reassessments can unexpectedly raise tax burdens for owners, creating financial challenges. By forecasting potential tax changes before a purchase, buyers can better prepare for long-term costs.

Our team specializes in nationwide property tax appeals, exemptions, and due diligence strategies. If you have concerns about your assessments, we’re here to help. Please reach out to a member of Honigman’s Real Estate Department for additional information.