State and local taxes are a significant operating expense for most businesses. The experienced lawyers in the Honigman Miller Schwartz and Cohn LLP Tax Appeals Department have achieved substantial tax savings for hundreds of our corporate and business clients. We represent businesses in property tax appeals, state tax litigation, and real estate transaction planning. We also negotiate tax credit and other incentive packages with state and local governmental entities.
Property Tax Appeals
Our Property Tax Appeals Group within our Tax Appeals Department has successfully reduced property taxes by millions of dollars and obtained favorable decisions not only in Michigan, but also in many other states throughout the country.
Local assessors sometimes make subjective decisions about market value, cost, depreciation, capitalization rates and a host of other matters. Misjudgments by assessors with respect to such issues can result in excessive and unlawful taxes. In addition, the incorrect application of legal concepts may also result in improper assessments. Issues of constitutional law and statutory construction frequently arise as well.
To decide whether an assessment should be challenged, consideration should be given to many factors, including the current market value of the property involved, the valuation methods used, the average level of assessment of comparable properties, and the practices of local assessing authorities. Michigan's unique method of taxation based on taxable value provides several other alternatives for relief. Furthermore, once the decision has been made to appeal, the procedures involved are often technical and complex, and the legal requirements for filing an appeal are usually strictly enforced against the taxpayer. Competent legal counsel is invaluable in protecting the client's rights in this regard.
Property Tax Services
Drawing on our expertise, we offer each client who owns, manages, or pays real or personal property taxes on leased commercial or industrial property
a complimentary review of each assessment and a recommendation about whether an appeal is justified. In most cases, contingent fee arrangements are available. In addition to property tax appeals, we also litigate valuation issues for other purposes, such as condemnation actions and bankruptcy proceedings. We also assist our clients in structuring real estate transactions in a way that minimizes the effects of the real estate transfer tax and the increase in taxable value that typically follows transfers.
As lawyers, we take seriously our professional responsibility to aggressively advocate our client's position and have the skills to argue legal issues as well as factual matters. Most property tax reductions are obtained through the negotiation process. On occasion, however, formal hearings or court action is necessary to achieve the right result for a client. In this connection, our firm has achieved several landmark decisions favorably affecting taxpayers' rights. Our reputation as effective litigators greatly increases our leverage in the negotiation process. We have successfully represented the owners of some of the largest properties in the nation, including automobile manufacturers, oil refineries, mining operations, utility companies, hotel corporations and the owners of malls, shopping centers, office complexes and apartments. At the same time, we also represent the owners of smaller businesses with the same degree of enthusiasm, skill and professionalism that we bring to bear for more well known clients.
While we vigorously pursue each client's interest, we also understand and respect the position of the assessor and the local community. In each contested tax case, we attempt to establish an atmosphere of cooperation, believing that most taxing units will voluntarily agree to reduce or correct an assessment to the proper amount when the taxpayer's case is properly presented.
In Michigan
For decades, we have been a leader in the field of Michigan property tax appeals. Many years ago, Jason Honigman, the firm's co-founder, took a strong personal interest in achieving fair and lawful property taxes for our clients. His efforts defined the role of the lawyer in property tax appeals in Michigan. Many of the most important court decisions in Michigan protecting the rights of taxpayers have resulted from tax appeals conducted by our lawyers. We have also been instrumental in reforming guidelines used by assessors to value personal property. Today, we pride ourselves on continuing Honigman's legacy of combining aggressive advocacy with a high degree of professionalism and expertise.
Outside of Michigan
We are a founding member of the prestigious
American Property Tax Counsel (the "APTC"), an affiliation of independent law firms that specialize in property tax matters in the United States and Canada. Working with the independent law firms affiliated with the
APTC, we provide nationwide property tax representation for our clients.
Our Clients
We have obtained individual judgments saving over
$1,000,000 in property taxes for each of several clients including:
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- The Detroit Edison Company
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- General Motors Corporation
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- Gordon Food Service, Inc.
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- Hitachi Magnetics Corporation
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- Michigan Bell Telephone Co. (AT&T)
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- Midland Cogeneration Venture LP
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- National Steel Corporation
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- Palace Sports and Entertainment
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- Taubman Auburn Hills Associates
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- Transwestern Fountainwalk LLC
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State Tax Litigation and Planning
The practice of state tax law today requires technical expertise, the ability to keep pace with the ever-changing state of the law and innovative solutions to new tax problems. Our clients demand sophisticated tax counsel and we seek to meet those demands through the expertise, experience and innovation of our State Tax Practice.
When state tax law is made in Michigan, Honigman is involved.
Honigman's State Tax Group is nationally recognized for its practice in the area of State and Local Taxation. Lawyers in the State Tax Group have handled state issues for Fortune 500 companies, small businesses and individuals in the state of Michigan and states throughout the country. Our State Tax Group work includes:
- Tax Compliance Analysis
- Multistate Tax Minimization Strategies
- Tax Litigation
- Tax Appeals
- Audit Advice
- Informal Conference Representation
- Nexus Compliance Studies
- Analysis of Michigan Business Tax Impact
- Tax Legislation Drafting and Lobbying
- Corporate Income Taxes
- Franchise Taxes
- Sales and Use Taxes
- Personal Income Taxes
- Transfer Taxes
- Tobacco Taxes
- Motor Fuel Taxes
- Personal Property Taxes
The State Tax Group advises clients on the state and local tax implications of a wide range of transactions and corporate reorganizations including the analyses of mergers, acquisitions, and dispositions. We have obtained favorable advance rulings from Michigan and other states to assist clients in their state tax planning needs. We have worked with clients to minimize any previous liability through tax amnesty and voluntary disclosure programs in almost all states.
We are able to resolve matters in a timely and efficient manner due to our depth of experience, our working relationships with key governmental personnel, and our thorough knowledge of state and local laws and policies. We have achieved beneficial settlements, in part, because of our ability and reputation to successfully litigate unresolved issues. If a matter cannot be settled, we aggressively pursue the matter through the court process.
Our attorneys have successfully argued many landmark state and local tax cases in Michigan, favorably affecting taxpayers' rights, including:
- Central National-Gottesman, Inc. v Michigan Department of Treasury, Michigan Court of Claims Case No. 06-15-MT (Oct. 5, 2007, SBT Unitary)
- Betten Auto Center v Department of Treasury, 478 Mich 864; 731 NW2d 424 (2007, Use Tax)
- WMS Gaming v Department of Treasury, 274 Mich App 440; 733 NW2d 97 (2007, Use Tax)
- Brunswick Bowling & Billiards Corp v Department of Treasury, 267 Mich App 682; 706 NW2d 30 (2005, Use Tax)
- Manske, et al v Michigan Department of Treasury, 265 Mich App 455; 695 NW2d 92 (2005, SBT Casual Transaction)
- Catalina Marketing Sales Corporation v Michigan Department of Treasury, 470 Mich 13; 678 NW2d 619 (2004, Use Tax)
- WPGP1 Inc v Michigan Department of Treasury, 240 Mich App 414; 612 NW2d 432 (2000, Use Tax)
- World Book Inc v Michigan Department of Treasury, 495 Mich 403; 590 NW2d 293 (1999, Use Tax)
- MagneTek Controls Inc v Michigan Department of Treasury, 221 Mich App 400; 562 NW2d 219 (1997, SBT Apportionment)
- Montgomery Ward & Co Inc v Department of Treasury, 191 Mich App 674; 478 NW2d 745 (1991, Michigan Tax Procedure)
Tax Incentives
Honigman's Investment Incentives and Tax Savings Group ensures that our clients maximize their access to, and benefits from, government incentive programs. Honigman professionals have been involved in many of Michigan's largest tax credit projects. With our experience, we can handle the full range of local, state and federal programs, including: Brownfield redevelopment grants and credits, property tax abatements, MEGA Michigan Business Tax Credits, tax increment financing, tax exempt bond financing and much more. We can assist you to sort out the myriad of programs; assemble the package that minimizes your costs and then negotiate the best possible result with the governmental units. It is important for a business to be aware of all its options early in the process because most programs are not available once a project has started or construction has commenced.
Honigman professionals recently worked to successfully obtain MEGA SBT credit, pollution control and/or property tax abatements for many international companies or joint ventures locating or expanding in Michigan. A sampling includes:
- Affinia Group Inc.
- Robert Bosch Corporation
- Pfizer
- Jatco USA
- Auto Alliance International Inc.
- Harmen International
- Steelcase Inc.
- Faurecia
Compuware Headquarters: We represented Compuware Corporation in connection with the acquisition, development and construction of its $350 million headquarters facility in downtown Detroit, including the purchase and development agreement with the City, related tax abatements, and a MEGA SBT credit. We drafted and arranged for the implementation of amendments to state law to facilitate the tax abatement and to secure an SBT credit of $30 million.
Wayne State University Research and Technology Park: In Detroit's "Smart Zone," we represent the owner/developer of a business incubator facility which includes laboratory and office space for emerging technology businesses. We assisted the owner/developer in financing the renovation and conversion of an historic industrial building, utilizing federal and state historic credits, state brownfield credits and federal New Markets Tax Credits. This $18 million development was the first New Markets Tax Credit transaction in Michigan.
Our Attorneys and other Professionals
The professionals in our Tax Appeals Department have more than 200 years combined experience in state and local tax matters. Our Department consists of eleven attorneys and six valuation specialists, three of whom were previously responsible for assessments in major taxing jurisdictions and one of whom is the former chairperson of the Michigan State Tax Commission. Our professionals also include a former Michigan Revenue Commissioner, a former Tax Tribunal Judge, an MAI appraiser, two CPAs as well as attorneys included in
The Best Lawyers in America.
For a complete list of attorneys in the Tax Appeals department, please
click here.
For more information about the Tax Appeals Practice Group, please contact Department Chair
Michael Shapiro at (313) 465-7622 or .
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