Heartland Feature Archive

By Jerome Wallach, The Wallach Law Firm Owners of large commercial real estate portfolios typically have internal staff to deal with assessed property values and the resultant taxes on a regular basis. But what about owners of small- or medium-value properties? How can a taxpayer, without knowledgeable staff or outside assistance, determine whether their assessment is fair or if they should seek an adjustment? And if seeking a reduction seems appropriate, going it alone through discussion with the assessor may be productive. Any such informal review or discussion should be the result of careful consideration and preparation. The following points are essential in that review and will help the taxpayer build and present a strong case for a reduced valuation. Getting started A government representative, usually the county collector, issues a property tax bill based on the value the county assessor has placed on the taxpayer’s real estate. The property owner may launch an appeal to contest that assessed value. However, in many states, the tax bill arrives after the due date for appealing the assessor’s valuation. Owners should review their property’s assessed value each year. Begin the process as soon as the assessor posts new values to its website, …

By Steven Schneider, Honigman LLP While taxpayers typically pay property taxes based upon their property’s market value, assessors frequently misapply evidence or even redefine market value to rake in excessive taxes. The recently resolved Michigan Tax Tribunal case of Menard Inc. vs. City of Escanaba illustrates several of these efforts to collect excessive taxes and suggests arguments a property owner can use to challenge them. What is market value? Market value is the price that willing, knowledgeable buyers and sellers in an arm’s-length transaction would agree the property is worth. Market value differs from insurance value or replacement value because it reflects what a typical buyer would pay for a property as it is. Market value also differs from value to the owner, which reflects how a particular property contributes to the owner’s business operation. Appraisers typically determine market value using one or more of three valuation techniques. The sales comparison approach adjusts sales of similar property to indicate the likely selling price of the subject property. The income approach values property by considering the present value of the income it would likely earn if rented, whether or not it actually is rented. The cost approach values property by considering …

By Kristin Hiller The combination of a spike in material costs, disruptions in the supply chain and a lack of available workers has created a difficult building environment for general contractors.  “It’s no secret that there are pressure points on our industry right now,” says Kinjal Patel, general manager and senior vice president for Lendlease Construction in Chicago. “The challenges we’ve faced the last couple years around supply chain disruption and rising materials and labor costs have only escalated, making planning and budgeting for projects incredibly unpredictable. In some cases, increases are as high as 10 percent in a span of just six months.”  Despite these challenges, general contractors maintain robust pipelines and anticipate that this year’s revenues will exceed last year’s totals.  “Last year, there was a lot of uncertainty as we were still in the process of rebounding from COVID, and construction deals were just finding their legs,” says Michael Meagher, president of Chicago-based McHugh Construction. “Our backlog today is better than the corresponding time a year ago as deals have continued to push forward. We forecast 2022 to be a better year for us than 2021.” Meagher anticipates that McHugh’s revenues will be more than 30 percent …