In Michigan, townships, cities and villages can enact special assessment districts (“SAD’s”) for public projects and other improvements. A special assessment is not considered a tax and is generally not subject to the Headlee Amendment to the Michigan Constitution. See Michigan Health and Wellness Center, LLC v Charter Twp of Royal Oak (unpublished decision by the Michigan Court of Appeals dated March 2, 2023; Case No. 359952, 2023 WL 2335253). Given that special assessments did not exist at the common law and other factors, the procedures and documents to create a special assessment (and the attendant district) must be followed precisely and done correctly. Given the complexity of most SAD enactment procedures, a municipality should normally work closely with its legal counsel regarding SAD’s. In most cases, a property owner can only challenge the enactment or other aspect of a SAD via an appeal to the Michigan Tax Tribunal .
Categories: Municipal Law, Real Estate