24-003999 PRE.pdf
David A Kopke, Petitioner V Township Of Franklin, Respondent · 24-003999-TT
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STATE OF MICHIGAN GRETCHEN WHITMER GOVERNOR DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS LANSING MARLON I. BROWN, DPA DIRECTOR MICHIGAN TAX TRIBUNAL · 611 W. OTTAWA ST., LANSING, MI 48933 · 517-335-9760 PO BOX 30232, LANSING, MI 48909 · Other Carriers: 2407 N. GRAND RIVER AVE., LANSING, MI 48906 David A Kopke, MICHIGAN TAX TRIBUNAL Petitioner, SMALL CLAIMS DIVISION v MTT Docket No. 24-003999 Franklin Township, Case Type: Principal Residence Respondent. Exemption PROPOSED OPINION AND JUDGMENT Personnel Presiding: Kari L. Miles, Administrative Law Judge Location of Hearing: Telephone Hearing Held on: August 20, 2025 Appearances on Behalf of Petitioner: Diane Kopke Appearances on Behalf of Respondent: Laura Erhart PROPOSED JUDGMENT Parcel No. 31-006-005-026-00 is entitled to a Principal Residence Exemption (PRE) under MCL 211.7cc. As a result, the property has a PRE of 100% for the 2024 tax year. PROCEDURAL HISTORY Respondent issued a notice denying the property’s PRE on September 5, 2024. Petitioner filed a petition with the Tribunal on September 27, 2024, and Respondent filed an answer on November 26, 2024. ISSUES AND APPLICABLE LAW The issue in this matter is whether Petitioner’s property qualifies for a PRE under MCL 211.7cc. A petitioner must prove, by a preponderance of the evidence, that they are entitled to an exemption.1 MCL 211.7cc provides that: A principal residence is exempt from the tax levied by a local school district for school operating purposes to the extent provided under . . . 1 ProMed Healthcare v Kalamazoo, 249 Mich App 490; 644 NW2d 47 (2002).
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MTT Docket No. 24-003999 Page 2 of 5 MCL 380.1211, if an owner of that principal residence claims an exemption as provided in this section. MCL 211.7dd provides that: Principal residence means the 1 place where an owner of the property has his or her true, fixed, and permanent home to which, whenever absent, he or she intends to return and that shall continue as a principal residence until another principal residence is established. . . . Principal residence includes only that portion of a dwelling or unit in a multiple-unit dwelling that is subject to ad valorem taxes and that is owned and occupied by an owner of the dwelling or unit. . . . Principal residence also includes all of an owner’s unoccupied property classified as residential that is adjoining or contiguous to the dwelling subject to ad valorem taxes and that is owned and occupied by the owner. Contiguity is not broken by a road, a right-of- way, or property purchased or taken under condemnation proceedings by a public utility for power transmission lines if the 2 parcels separated by the purchased or condemned property were a single parcel prior to the sale or condemnation. . . . Principal residence also includes any portion of a dwelling or unit of an owner that is rented or leased to another person as a residence as long as that portion of the dwelling or unit that is rented or leased is less than 50% of the total square footage of living space in the dwelling or unit. MCL 211.7dd also provides that: Owner means any of the following: (i) A person who owns property or who is purchasing property under a land contract. (ii) A person who is a partial owner of property. (iii) A person who owns property as a result of being a beneficiary of a will or trust or as a result of intestate succession. (iv) A person who owns or is purchasing a dwelling on leased land. (v) A person holding a life lease in property previously sold or transferred to another. (vi) A grantor who has placed the property in a revocable trust. (vii) The sole present beneficiary of a trust if the trust purchased or acquired the property as a principal residence for the sole present beneficiary of the trust, and the sole present beneficiary of the trust is totally and permanently disabled. As used in this subparagraph, "totally and permanently disabled" means disability as defined in section 216 of title II of the social security act, 42 USC 416, without regard as to whether the sole present beneficiary of the trust has reached the age of retirement. (viii) A cooperative housing corporation. (ix) A facility as defined by former 1976 PA 440 and registered under the continuing care community disclosure act, 2014 PA 448, MCL 554.901 to 554.993. MCL 211.7dd(b) provides that: “‘Person’ for purposes of defining owner as used in section 7cc means an individual.”
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MTT Docket No. 24-003999 Page 3 of 5 SUMMARY OF EVIDENCE A. Petitioner’s Evidence The exhibits offered by Petitioner may be viewed on lines 1 and 8 of the docket maintained in this case.2 Based on the pleadings, admitted exhibits, and sworn testimony, Petitioner contends that he owns the subject property, and it is unoccupied and contiguous to his principal residence at 22614 Highway Loc Road. Petitioner’s representative testified that the subject property is contiguous to the existing PRE and is unoccupied. There is a vacant house with no appliances or furniture. No one stays in the house. The subject property has electricity and a well. Petitioner uses the property for storage and the outdoor sauna. Petitioner purchased the property on March 11, 2024. B. Respondent’s Evidence The exhibits offered by Respondent may be viewed on line 5 of the docket maintained in this case.3 No exhibits were excluded from evidence. Based on the pleadings, admitted exhibits, and sworn testimony, Respondent contends that it was not known at the time of the PRE denial that the home on the subject property was unoccupied. Respondent’s representative testified that the subject is across the street from Petitioner’s house. The last time the assessor visited the property the house was occupied. Respondent did get a letter from Petitioner after the denial was issued stating the property is not occupied. Property owners regularly fill out the PRE affidavit incorrectly and Respondent cannot just go by what boxes are checked on the affidavit. If the property was not occupied it would qualify as being contiguous to the existing PRE. Respondent is not claiming the property is being occupied after receiving Petitioner’s letter. FINDINGS OF FACT The following facts were found to be proven by a preponderance of the evidence: 2 The docket is located on the Tribunal’s website at Tax Docket Lookup Search Page and may be accessed by entering the docket number assigned to this case. 3 The docket is located on the Tribunal’s website at Tax Docket Lookup Search Page and may be accessed by entering the docket number assigned to this case.
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MTT Docket No. 24-003999 Page 4 of 5 1. The subject property is located at 22581 Highway Loc Road, Franklin Township, Houghton County. 2. The subject property is classified as residential. 3. Petitioner is an owner of the subject property. 4. Petitioner filed an affidavit requesting the PRE for the subject property on August 14, 2024. 5. Respondent denied the request on September 5, 2024. 6. Petitioner submitted a survey confirming that the subject property is contiguous to Petitioner’s principal residence at 22614 Highway Loc Road. 7. Petitioner has had a 100% PRE at 22614 Highway Loc Road since 2020. CONCLUSIONS OF LAW The following authority and reasoned opinion supports the Tribunal’s determination: The subject property is contiguous to Petitioner’s existing PRE at 22614 Highway Loc Road. Petitioner submitted a survey confirming that the parcels are contiguous. MCL 211.7dd(c) provides, in relevant part, that: Principal residence also includes all of an owner's unoccupied property classified as residential that is adjoining or contiguous to the dwelling subject to ad valorem taxes and that is owned and occupied by the owner. . . . Contiguity is not broken by boundary between local tax collecting units, a road, a right-of-way, or property purchased or taken under condemnation proceedings by a public utility for power transmission lines if the 2 parcels separated by the purchased or condemned property were a single parcel prior to the sale or condemnation. As stated in Eldenbrady v City of Albion,4 a contiguous property is required to be unoccupied meaning “without human occupants” and not vacant. Petitioner credibly testified that while there is a house on the subject property, it is not being occupied by Petitioner or anyone else. The house has no appliances and no furniture and is being used for storage. Respondent’s representative is not disputing that the subject property is unoccupied following receipt of Petitioner’s information. Having considered the testimony and evidence submitted, the Tribunal finds that the subject property is unoccupied within the meaning of MCL 211.7dd and Eldenbrady. Accordingly, the subject property shall be granted a 100% PRE for the 2024 tax year. JUDGMENT This is a proposed decision and not a final decision. As such, no action should be taken based on this decision. 4 Eldenbrady v City of Albion, 294 Mich App 251; 816 NW2d 449 (2012).
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MTT Docket No. 24-003999 Page 5 of 5 After the expiration of the time period for the opposing party to file a response to the exceptions, the Tribunal will review the case file, including the Proposed Opinion and Judgment (POJ) and all exceptions and responses, if any, and: a. Issue a Final Opinion and Judgment (FOJ) adopting the POJ as a Final Decision; b. Issue an FOJ modifying the POJ and adopting the Modified POJ as a Final Decision; or c. Issue an Order vacating the POJ and ordering a rehearing or such other action as is necessary and appropriate. EXCEPTIONS The parties have 20 days from the “Entered” date below to notify the Tribunal in writing, by mail or by electronic filing, if they do not agree with the POJ and to state in writing why they do not agree with the POJ (i.e., file exceptions to the POJ). Exceptions must be signed and are limited to the evidence submitted prior to or at the hearing and any matter addressed in the POJ. There is no fee for filing exceptions. Parties must provide the opposing party with a copy of their exceptions and file proof of service with the Tribunal (i.e., submit a written statement indicating that the opposing party has been provided or “served” with a copy of the exceptions). Service on the opposing party can be made by mail, or if agreed to by the parties, by electronic service (i.e., email). The proof of service must be signed. The opposing party has 14 days from the date the exceptions are served on that party to file a written response with the Tribunal. Responses to exceptions must be signed. Parties must provide the opposing party with a copy of their response to the exceptions and file a signed proof of service with the Tribunal. If the parties fail to sign their exceptions or responses, or if they fail to submit a signed proof of service for the exceptions and/or responses, the Tribunal may not consider the exceptions or responses in issuing the FOJ. By _________________________________ Entered: September 25, 2025 PROOF OF SERVICE I certify that a copy of the foregoing was sent on the entry date indicated above to the parties or their attorneys or authorized representatives, if any, utilizing either the mailing or email addresses on file, as provided by those parties, attorneys, or authorized representatives. By: Tribunal Clerk