Colleen:
I don't think you will have to wait long for your owners to realize that Michigan self storage operators are getting hit with a major tax increase. Here are a few comments from Maurice Pogoda's email from yesterday just in case you and your owners might not have received it:

"By now you should have received your first quarterly tax filings. As you are aware, last year’s State budget fiasco resulted in a 21.99% surcharge to the new Michigan Business Tax (MBT).

In addition, significant changes were made that have resulted in dramatic increases to the commercial real estate sector. These changes, which are permanent, unless repealed or modified, will significantly impact the value of your real estate for years to come.

In fact it is common to hear from companies across the state that they have experienced a 200, 300 even 400% tax increase due to the new MBT and surcharge. As an example, in one of our properties we went from having an SBT bill of $12,000 to an MBT bill of $54,000!!"

Nothing like a $42,000 increase in taxes to make you pass through a rent increase.

MisterJim444

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