Michigan Tax Tribunal - Distro 10 and City of Warren - Petition.pdf
Distro 10 Inc, Petitioner Vs. City Of Warren, Respondent · 25-001898-TT
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Page 1
STATE OF MICHIGAN DEPARTMENT OF LICENSING & REGULATORY AFFAIRS MICHIGAN TAX TRIBUNAL DISTRO 10 INC. MTT Docket No. 25- Petitioner, Parcel Nos. 12-99-02-217-200 v. CITY OF WARREN, Respondent. Alan Shamoun (P76992) Jamila J Garmo (P85952) General Counsel Attorneys for Petitioner 21445 Hoover Road Suite 101 Warren, Michigan 48089 Direct: (248)808-5222 Email: alan@mgmt10.com Tax Year 2025 Petition of Personal Property Classification Petitioner, Distro 10, Inc. (“Petitioner”), by and through their General Counsel, Alan Shamoun and Jamila J. Garmo. for their Petition against Respondent, City of Warren, state as follows: Subject Personal Property 1. Petitioner is a Michigan corporation.
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99-02-217-200, located at 21445 Hoover Road, Suite 302, Warren, Michigan 48089 (the “Subject Personal Property”). 4. Petitioner is identified as the taxpayer on the assessment roll for the Subject Personal Property. 5. Petitioner is a party in interest with respect to the taxable status and property tax assessment of the Subject Personal Property under MCL 205.735a(6). 6. For tax year 2025, the Subject Personal Property was classified “Commercial Personal.” 7. The Subject Personal Property was designed and presently used for industrial processing purposes. 8. In particular, Petitioner’s use of the Subject Personal Property is in a state and city licensed marijuana processing facility where raw plant products are processed and made into fully compliant finished products ready for human consumption. 9. Respondent, City of Warren (the “City™), is a city located in Macomb County, Michigan. General Allegations 10. Petitioner, operates a cannabis processing facility operation at the Subject Real Property pursuant to sued medical and adult-use Licenses (AU-P-000416 & PR-000333), issued by the State of Michigan (the “Processing Facility”).
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Michigan. 12. In particular, the Subject Personal Property includes, for example, (i) a C1D1 and C1D2 extraction booths with extraction equipment using both Ethanol and Butane for marijuana extraction; (ii) cart filling machines to make marijuana vape carts; (iii) a number of marijuana injection machines which inject processed marijuana concentrates into marijuana flower pre- rolls; and (4) machinery to take raw marijuana flower and turn it into pre-rolls. 13. The subject personal property is actually used in industrial processing operations. 2025 Assessment Protest to the Board of Review and Jurisdiction 14. On February 20, 2025, Petitioner timely filed the “Eligible Manufacturing Personal Property Tax Exemption Claim, Personal Property Statement and Report of Fair Market Value of Qualified New and Previously Existing Personal Property” (Form 5278) (Exhibit A). 15. Respondent issued an Assessor Denial letter of Form 5278 on March 3, 2025 (Exhibit B). 16. Petitioner then filed an appeal of the Denial of Form 5278 for the Subject Personal Property with the March Board of Review on March 14, 2025 (Exhibit C). 17. Petitioner timely submitted a protest to the Board in which it sought a change of the taxable status of the Subject Personal Property as exempt (a) under MCL 211.9(m) and MCL 211.9(n) based on the Subject Personal Property’s use in industrial processing. 18. The Board issued its decision, denying Petitioner’s Protest. (Exhibit D) 19. Petitioner now appeals the Board’s decision.
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Property Exemption under MCL 211.9m and MCL 211.9n 22. Petitioners reallege and incorporate by reference the allegations made above and below as though restated herein. 23. This count involves issues relating to: (a) uniformity and (b) exemption. 24. Petitioner claims the Subject Personal Property should be exempt under the industrial manufacturing exemption, Petitioner asserts Count I, claiming the Subject Personal Property is exempt under the eligible manufacturing personal property exemption (“EMPP”). 25. The Subject Personal Property is predominantly used by Petitioner to manufacture raw marijuana plants into finished products by blending, extracting, and/or infusing marijuana into a useable form. 26. Michigan regulators such as the Cannabis Regulatory Agency and the Michigan Occupational Safety and Health Administration consider Petitioner’s facility as involved in the industrial processing of marijuana plant material into finished consumable products. 27. Accordingly, the subject personal property is EMPP and qualifies for the exemption under MCL 211.9m and MCL 211.9n. WHEREFORE, , Petitioners respectfully request that the Tax Tribunal find and determine that: 1. Tax parcel no. 12-99-02-206-000 qualifies for the EMPP exemption; 2. The assessed, state equalized, and taxable value of tax parcel no. 12-99-02-217- 200 shall be reduced to $0 for tax year 2025, and 3. Petitioners are entitled to an award of costs, including attorneys’ fees, and such
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Respectfully submitted, Dated: May 30, 2025 pe Ys Shamourf (P76992) Jamila J Garmo (P85952) Attorneys for Petitioner 21445 Hoover Road, Suite 101 Warren, MI 48089
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Exhibit A
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Michigan Department of Treasury Parcel Number 5278 (Rev. 09-24) 12-99-02-217-200 | 2025 Eligible Manufacturing Personal Property Tax Exemption Claim, and Report of Fair Market Value of Qualified New and Previously Existing Personal Property (Combined Document) Issued under authority of PA 206 of 1893 and PA 92 of 2014, as amended, Filing is mandatory in order to claim the Eligible Manufacturing Personal Praperty tax exemption. DO NOT COMPLETE THIS COMBINED DOCUMENT UNLESS THE PERSONAL PROPERTY MEETS THE DEFINITION OF ELIGIBLE MANUFACTURING PERSONAL PROPERTY. Eligible Manufacturing Personal Property (EMPP) means all personal property located on occupied real property if that personal property is predominantly used in industrial processing or direct integrated support. For personal property that is construction in progress and part of a new facility not in operation, EMPP means all personal property that is part of that new facility if that personal property will be predominantly used in industrial processing when the facility becomes operational. Qualified new and qualified previously existing personal property (as defined by MCL 211.9m and 211.9) for which an exemption has been properly claimed is exempt from local property tax. To claim this exemption, a fully completed Form 5278 must be delivered to the assessor of the local unit of government in which the qualified personal property Is located, postmarked no later than February 20, 2025. Failure to complete the required certification, personal property statement, and report of fair market value on Form 5278 may result in the claim being denied. Claiming this exemption when not entitled to it can result in significant penallies. Important Note: Leasing companies are not eligible to receive the exemption under MCL 211.9m and MCL 211.9n and may not use this Combined Document. A lessee and lessor may elect that the lessee report leased personal property on this Combined Document by completing the Election of Lessee Report of Eligible Manufacturing Personal Property (Form 5467) and attaching il to this form. Absent such an election, the personal property must be reported by the lessor on the personal properly statement (Farm 632). PART 1: ELIGIBLE MANUFACTURING PERSONAL PROPERTY TAX EXEMPTION CLAIM To claim this exemption you must fully complete the entire Combined Document, including the required certification, and report of fair market value. A separate Form 5278 must be filed for each parcel number. Taxpayer Information Federal Employer Idenlification Number (FEIN Taxpayer Name Associated with this FEIN DISTRO 10 INC. Primary Occupant Name, if other than Taxpayer Name Assumed names, if any, used by legal entity (attach fist if necessary): Contact Person Name Contact E-mail Address Contact Telephone Number NEMER HADDAD NEMER@MGMT10.COM (248) 939-0525 Contact St. No. | Contact Street Name or PO Box Contact City State ZIP Code Country 21445 HOOVER ROAD #302 WARREN Mi 48089 USA Printed Name of Person in Charge of Records Telephone Number Address where records are retained MAHA RABAH KHALIL (248) 538-1294 31500 W 13 MILE ROAD #118 FARMINGTON Personal Property Location Information Parcel Number of Personal Property claimed as Eligible Manufacturing Persanal Property 12-99-02-217-200 NOTE: If the property is located within a city, complete the City and County fields below. If located within a township but not within a village, complete the Township and County fields. If the property is located within a village, complete the Township, Village, and County fields. City Township Village Counly WARREN MACOMB Street Address where personal property is located City State ZIP Code 21445 HOOVER ROAD SUITE 302 WARREN Mi 48089 List all real property parcel numbers where the personal property reported on this form is located (aftach list as necessary) N/A CERTIFICATION 1. I certify that | own, lease or otherwise occupy the real praperty on which the eligible manufacturing personal property is located, or | am the sole proprietor, partner, officer, managing member or the duly authorized agent of the owner, lessee or accupant (agent must attach letter of authority). . | certify that the personal property for which an exemption is claimed pursuant to this Combined Document is Eligible Manufacturing Personal Property as defined by MCL 211.8m and the personal property for which an exemption is being claimed meets the more than 50% requirement of being predominately used in industrial pracessing or direct integrated support and therefore qualifies or will qualify for exemption under MCL 211.9m or MCL 211.9, | certify my understanding that according to Public Act 92 of 2014, as amended, | am required to provide access to the books and records, for audit purposes, relating to the location and description; the date of purchase, lease, or acquisition; and the purchase price, lease amount, or value of all personal properly owned by, leased by, or in the possession of thal person or a refaled enlily if requested by the assessor of the township or city, county equalization department, or Michigan Department of Treasury ~ ©
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5278, Page 2
PART 2: Report of Fair Market Value (Acquisition Cost) of Qualified New and Previously Existing Personal Property
Qualified new personal property and qualified previously existing personal property located on occupied real property is exempt from local ad valorem
taxation and is instead subject to the Essential Services Assessment (ESA), payable to the Michigan Department of Treasury. See instructions, page 2.
I] Check if there is zero acquisition cost reported in the total in Part 2, Section B, below. Unless this box is checked, failure to report
acquisition cost in Section B may result in rescission of the EMPP exemption for this parcel.
X Check if the personal property reported on this form includes leased personal property for which the election of lessee report is being filed.
The taxpayer must complete the Election of Lessee Report of Eligible Manufacturing Personal Property (Form 5467) and include it with this
copy of Form 5278 when filed with the local tax collecting unit.
Section A: Summary and Reporting Instructions for Essential Services Assessment
Provide a yes or no answer to all questions. The Acquisition Cost [MCL 211.1053(a)(i)] for all personal property must be reported in Section B below.
1.
Is the personal property reported on this Combined Document subject to an industrial Facilities Exemption Certificate
(PA. 198 of 1974) that went into effect prior to December 31, 2012? If yes, attach a copy of the IFT certificate................
Yes
XI No
Certificate Begin Date
Certificate End Date
IFT Certificate
Number:
NOTE: The IFT Certificate Number is typically seven digits, although some may also have an additional character that is entered in the dotted
field. Otherwise, leave the dotted box blank.
2.
Is the personal property reported on this Combined Document subject to a P.A. 328 (MCL 211.9) New Personal
Property exemption?
Ifyes, attach a copy of the P.A. 328 certificate........
a Yes
No
PA. 328
Certificate Begin Date
Cerificate End Date
Certificate Number:
3.
Is the personal property reported on this Combined Document exempt from the Essential Services Assessment, and
eilher subject to or exempt from an Alternative Essential Services Assessment, as a result of a resolution adopted
under provisions of MCL 211.1059 by the Michigan Strategic Fund {MSF)? If yes, attach a copy of the MSF resolution.
Yes
No
MSF Certificate
Certificate Begin Dale
Certificate End Date
Number:
-
a
] Yes
No
Expiration Date
4.
Is the personal property reported on this Combined Document subject to a Renaissance Zone Exemption?......
Renaissance Zone Name
Section B: Report of Acquisition Cost
Report of Qualified New Personal Property (MCL 211.9m) and Qualified Previously Existing Personal Property (MCL 211.3n). For purposes of reporting in this section,
“Acquisition cost” means 100% of the fair market value of personal property at the time of acquisition by the first owner, including the cost of freight, sales tax, and installation,
and other capitalized costs, except capitalized interest, prior to any reduction of Fair Market Value provided for by statute. Report Construction in Progress (CIP) as defined
in MCL 211.9m(6)(c) in this part of the Dacumenl. For Construction in Progress, Acquisition Cost includes lhe cost of freight, sales tax, and installation. (See instructions for
more information on Construction in Progress.)
Year Placed in Service
Acquisition Cost [MCL 211.1053(a)(i)}
Year Placed in Service
Acquisition Cost [MCL 211.1053(a)(i)]
Construction in Progress
2019
2024
536,668
2018
2023
5,682,262
2017Page 9
Michigan Department of Treasury
5467 (Rev. 09-24), Page
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Election of Lesses Report
ligibie Manufacturing Personal Probert
Issusd under the aulhorily of the General Praperty Tax Acl, Public Act 206 of 1893, and the Essenlial Services Assessment
Act, Public Act 92 of 2014. Filing is mandalory.
Leasing companies are nol eligible lo receive (he exemplion for qualified new personal property and qualified previously exisling perscnal property and
may nat use the Combined Document (Eligible Manufacluring Personal Property Claim, and Report of Fair Markel Value of Qualified New and Previously
Exisling Parsonal Property, Form 5278). Wilh respect to personal property that is lhe subject of a lease agreement, regardless of whether lhe agreement
constitutes a lease for financial or tax purposes, if the personal property is or will be Eligible Manufacturing Personal Property, the lessee and lessor may
elect thal the lessee report the leased eligible manufacturing personal property on Form 5278 and be responsible for any Essenlial Services Assessment
liability Ihat results. To elecl for the lessee to report the leased personal properly, al least some, but not necessarily all, personal property subject lo the
lease agreement mus! be Eligible Manufaciuring Personal Property as defined in MCL 211.9m and MCL 211.9n. Property subject to tha lease agreement
must be reported on Part 2 and/or Part 3 of the Combined Dacument, as applicable.
To make this election, the lessee and lessor must complete this form in its entirely.
In Part 3, list all parcel numbers included in this election. It must be
attached to Form 5278 when itis filed with the assassar of the local unit in which the property is located no later than February 20 or the March
Board of Review prior to its adjournment. Absent an election and lhe attachmenl of this farm, the personal properly shall be reported by the lessor on
the personal property slalement pursuant to MCL 211.19. See MCL 21 1.1057(8).
PART 1. LESSEE INFORMATION
By signing below,
| elect that
| shall be responsible for reporting the leased personal property associaled with (he aforementioned parcel on the
Combined Document (Form 5278) and be responsible for any Essential Services Assessment liability that results.
Cessea Name
Lesses Federal Employer identification Number (FEIN)
DISTRC 10 INC.
Lesses Ropresenialive
Te
Ue
NEMER HADDAD
PRESIDENT
Losses re
Dale
|
2-205
PART 2;
By signing below,
| agree thal the lessee named above shall be responsible for reporting the listed personal property on lhe Combined Document
(Form 5278) and be responsible for any Essential Services Assessment liability that results.
Lessor Name
Lessor FEIN
GOLD STANDARD LEASING LLC
]
* Lessor's Represenlalive
Lessor Representative = Tille
{BRANDON LOOMIS
PARTNER
Lessar Represerilat ve Signature
g
Date
a
Cr
| 2 LO
25
i
The.Signatures of hoth parties on this form are
required to relieve the Lessor of its obligation to report leased personal property under
MCL 211.19. Signatures can be signed manually, by facsimile or electronically. Once this election is filed with the assessor,
it cannot be
revoked for the year the election is made.
{ PART 3: PARCEL NUMBER INFORMATION
List below the parcel number on which the personal property was reported for the prior year, the parcel number it will be reported an for the current year.
the local unit and county where the personal property parcels are locaied and lhe associated lease agreement expiration date. Include additional pages
if necessary. New personal property reported for the first time, nol previously reported by the lessor, will report only the current year parcel number
where the personal property wil be reported, the local unit, county and lease agreement expiration date. Note this election appiies to all subsequently
acquired personal property under lhe associated lease agreement. Form 5467 will be filed snce and the election will remain in place unless revoked
or untl the lease agreement expiration. Lessees wid annually provide the Part 3 informalion with each Form 5278 filed. See form 5278 for additional
filing instructions.
[Lease Agrsament
Parcel Number Reporting
Local Unit
County
Expiration Date
J
Lessor Previous Year:
i
)
Lessee Current Year: 12.99-02-217-200
WARREN
MACOMB
12-20-2025Page 10
Exhibit B
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Lori Stone, Mayor WAR RR = N City Assessor's Office, One City Square, Suite 310, Warren, Michigan 48093 (586) 574-4532 Assessor Denial of Request for Exemption as Eligible Manufacturing Peresonal Property Defined in MCL 211.9m and MCL 211.9n Issued under the authority of the General Property Tax Act, Public Act 206 of 1893, as amended. DISTRO 10 INC Location of Personal Property: 21445 HOOVER STE 302 21445 HOOVER STE 302 WARREN, MI 48089 WARREN MI 48089 Parcel No. 12-99-02-217-200 - 2025 Assessor Denial of Eligible Manufacturing Personal Property Exemption The Assessor should deny an exemption for EMPP for personal property that is determined not to meet the eligibility requirements of MCL 211.9m and MCL 211.9n. When issuing a denial, the assessor must notify the taxpayer of the denial and their right to appeal. The assessor may deny a claim for exemption for the current year only. An assessor who denies an exemption should request that the taxpayer file form 632, Personal Property Statement. In the absence of a completed Form 632, assessors are advised to use the best information available in order to estimate the assessment. Assessor Certification and Denial of Eligible Personal Property Exemption ;t that Form 632, Personal Property Statement be filed. In the absence of a completed Form 632, assessors are advised to use the best information available to estimate the assessment. A separate Form 5379, Assessor Affidavit to Correct Taxable Value After a Denial of EPP Granted Pursuant to MCL 211.9m and MCL 211.9n must be filed with the taxpayer each assessment year a denial is entered.) | certify that | am the Assessor of Record with the State Tax Commission for the local unit of government identified above. I certify that Form 5278 was received by the owner/taxpayer identified above, no later than February 20, 2025. | certify that based on my review, the qualified new personal property and/or the qualified existing personal property claimed on Form 5278 does not meet the definition of Eligible Manufacturing Personal Property as defined by MCL 211.9m and/or MCL 211.9n, therefore the Eligible Manufacturing Personal Property exemption is denied. Printed Name Signature Date F. Scott Miller IsIF. Scott Miller 03/03/2025 [Notification of Taxpayer's Right of Appeal
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Exhibit C
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DISTRO 10, Inc. 21445 Hoover Road Suite 302 Warren, MI 48089 March 14, 2025 City of Warren March Board of Review One City Square Suite 310 Warren, MI 48093 RE: Appeal of EMPP Denial from City of Warren Assessor’s Office Distro 10, Inc. - Parcel 12-99-02-217-200 Dear March Board of Review: I'am writing to formally appeal the denial of Distro 10, Inc.’s (“Distro 10”) application for an exemption of personal property taxes under the Eligible Manufacturing Personal Property (“EMPP”), as defined by MCL 211.9m and/or MCL 211.9n. Based on the City Assessor’s determination, the denial reason provided in the attached letter (Exhibit A) is as follows: “I [Assessor] certify that based on my review, the qualified new personal property and/or the qualified existing personal property claimed on Form 5278 does not meet the definition of Eligible Manufacturing Personal Property as defined by MCL 211.9m and/or MCL 211.9n, therefore the Eligible Manufacturing Personal Property exemption is denied.” Unfortunately, the denial letter does not provide further explanation or reasoning. Without knowing the specific facts on which the City Assessor based this decision, it is challenging to directly refute this broad claim. To ensure that the City Assessor and the March Board of Review fully understand why Distro 10’s business activities meet the EMPP criteria, I am providing a detailed overview of the company’s operations at its facility located at 21445 Hoover Road, Suite 302, Warren, MI 48089. Overview of Distro 10’s Business Activities Distro 10 is a licensed medical marijuana and adult-use processor, operating under the City of Warren Ordinance 19.5-7(a) (“Warren Ordinance”) and the Cannabis Regulatory Agency of Michigan. The Warren Ordinance defines a “Processing Establishment/Facility” as:
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pursuant to the MMFLA, the MRTMA, and the state medical and recreational marihuana regulations.” (Emphasis added.) Distro 10, for its Warren location, engages in activities such as extracting cannabinoids, refining concentrates, and producing edibles or other cannabis-infused products. These processes involve transforming raw cannabis into consumable goods, aligning with the state's definition of industrial processing. More specifically, at its Warren location, Distro 10 conducts two primary business activities entirely within the scope of authorized “Processing Establishment” operations. The company has invested millions of dollars in manufacturing equipment—such as injection machines, cart-filling machines, and an advanced extraction facility—that is solely used for the production and manufacturing of raw marijuana plant material into finished products ready for retail. Notable processes include: ® Producing infused pre-rolls (prepared marijuana joints injected with concentrates). o Operating the largest ethanol-based extraction booth in Michigan, transforming raw materials into high-quality finished products for sale. * Manufacturing THC distillate oil for vapes and edibles or creating marijuana concentrate products, such as wax, shatter, and butter. These highly technical processes align with the Warren Ordinance’s definition of “Process,” which includes “preparing marihuana plants for consumption, including, but not limited to: blending, extracting, infusing, manufacturing into usable form.” (Emphasis added.) All production activities are meticulously documented through internal records and METRC, the Cannabis Regulatory Agency’s required seed-to-sale tracking system. These industrial processes that Distro 10 conducts are no different than any other manufacturing industry. Distro 10 takes raw goods and, using the machinery and equipment that makes up the value of the personal property, they produce new finished goods ready for sale at retail. This is no different then pharmaceuticals, beauty products, or the food and beverage industry. Simply changing the raw product to cannabis in no way reduces the fact that Distro 10 is still in the business of industrial processing. Alignment with EMPP and MCL 205.54t Requirements Under MCL 211.9m(6)(c), “Eligible Manufacturing Personal Property” is defined as “all personal property located on occupied real property if that personal property is predominantly used in industrial processing or direct integrated support.” Distro 10’s business activities qualify as industrial processing under MCL 205.54t of the General Sales Tax Act. Specifically: * MCL 205.54t(1)(a) exempts industrial processors from personal property tax when their equipment is used in industrial processing. e Section 3(a) of this statute identifies “production or assembly activities” as qualifying for industrial processing, which encompasses Distro 10°s conversion of raw marijuana material into final retail
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Conclusion Based on the evidence presented, Distro 10 unequivocally satisfies the requirements to qualify for the EMPP exemption under Michigan law. All activities align with the definitions of industrial processing as outlined by the General Sales Tax Act and the City of Warren Ordinance. For these reasons, I respectfully request that the March Board of Review reverse the denial and grant Distro 10, Inc. the EMPP exemption. Sincerely, Az Alan Shamoun General Counsel alan@mgmt10.com (248)808-5222
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Exhibit A Denial Letter from City of Warren
Page 17
Lori Stone, Mayor RREN City Assessor's Office, One City Square, Suite 310, Warren, Michigan 48093 (586) 574-4532 Assessor Denial of Request for Exemption as Eligible Manufacturing Peresonal Property Defined in MCL 211.9m and MCL 211.9n Issued under the authority of the General Property Tax Act, Public Act 206 of 1893, as amended. DISTRO 10 INC 21445 HOOVER STE 302 WARREN, MI 48089 - 2025 Location of Personal Property: 21445 HOOVER STE 302 WARREN MI 48089 Parcel No. 12-99-02-217-200 Assessor Denial of Eligible Manufacturing Personal Property Exemption The Assessor should deny an exemption for EMPP for personal property that is determined not to meet the eligibility requirements of MCL 211.9m and MCL 211.9n. When issuing a denial, the assessor must notify the taxpayer of the denial and their right to appeal. The assessor may deny a claim for exemption for the current year only. An assessor who denies an exemption should request that the taxpayer file form 632, Personal Property Statement. In the absence of a completed Form 632, assessors are advised to use the best information available in order to estimate the assessment. Assessor Certification and Denial of Eligible Personal Property Exemption st that Form 632, Personal Property Statement be filed. In the absence of a completed Form 632, assessors are advised to use the best information available to estimate the assessment. A separate Form 5379, Assessor Affidavit to Correct Taxable Value After a Denial of EPP Granted Pursuant to MCL 211.9m and MCL 211.9n must be filed with the taxpayer each assessment year a denial is entered.) I certify that | am the Assessor of Record with the State Tax Commission for the local unit of government identified above. I certify that Form 5278 was received by the owner/taxpayer identified above, no later than February 20, 2025. | certify that based on my review, the qualified new personal property and/or the qualified existing personal property claimed on Form 5278 does not meet the definition of Eligible Manufacturing Personal Property as defined by MCL 211.9m and/or MCL 211.9n, therefore the Eligible Manufacturing Personal Property exemption is denied. Printed Name F. Scott Miller Signature IsIF. Scott Miller Date 03/03/2025 [Notification of Taxpayer's Right of Appeal
Page 18
Exhibit B Distro 10 Form 5278
Page 19
Michigan Department of Treasury Parcel Number $278 (Rev. 09:24) 12-99-02-217-200 2025 Eligible Manufacturing Personal Property Tax Exemption Claim, and Report of Fair Market Value of Qualified New and Previously Existing Personal Property (Combined Document) Issued under authority of PA 206 of 1893 and PA 92 of 2014, as amended. Filing is mandatory in order to claim the Eligible Manufacturing Personal Property tax exemption. DO NOT COMPLETE THIS COMBINED DOCUMENT UNLESS THE PERSONAL PROPERTY MEETS THE DEFINITION OF ELIGIBLE MANUFACTURING PERSONAL PROPERTY. Eligible Manufacturing Personal Property (EMPP) means all personal property located on occupied real property if that personal praperty is predominantly used in industrial processing or direct integrated suppaert. For personal property that is construction in progress and part of a new facility not in operation, EMPP means all personal property that is part of that new facility if that personal property will be predominantly used in industrial processing when the facility becomes operational. Qualified new and qualified previously existing personal property (as defined by MCL 211.9m and 211.9n) for which an exemption has been properly claimed is exempt from local properly tax. To claim this exemption, a fully completed Form 5278 must be delivered to the assessor of the local unit of government in which the qualified personal property is located, postmarked no later than February 20, 2025. Failure ta complete the required certification, personal property statement, and report of fair market value on Form 5278 may result in the claim being denied. Claiming this exemption when not entitled to it can result in significant penalties. Important Note: Leasing companies are not eligible to receive the exemption under MCL 211.9m and MCL 211.9n and may not use this Combined Document. A lessee and lessor may elect that the lessee report leased personal property on this Combined Document by completing the Election of Lessee Report of Eligible Manufacturing Personal Property (Form 5467) and aftaching it to this form. Absent such an election, the personal property must be reported by the lessor on the personal property statement (Form 632), PART 1: ELIGIBLE MANUFACTURING PERSONAL PROPERTY TAX EXEMPTION CLAIM To claim this exemption you must fully complete the entire Combined Document, including the required certification, and report of fair market value. A separate Form 5278 must be filed for each parcel number. Taxpayer Information Federal Employer Idenfification Number (FEIN Taxpayer Name Associated with this FEIN DISTRO 10 INC. Primary Occupant Name, if other than Taxpayer Name Assumed names, if any, used by legal entity (attach list if necessary): Contact Person Name Contact E-mail Address Contact Telephone Number NEMER HADDAD NEMER@MGMT10.COM (248) 939-0525 Contact St. No. | Contact Street Name or PO 8ox Contact City State ZIP Code Country 21445 HOOVER ROAD #302 WARREN Mi 48089 USA Printed Name of Person in Charge of Records Telephone Number Address where records are retained MAHA RABAH KHALIL (248) 538-1294 31500 W 13 MILE ROAD #118 FARMINGTON Personal Property Location Information Parcel Number of Personal Property claimed as Eligible Manufacturing Personal Properly 12-99-02-217-200 NOTE: If the property is located within a city, complete the City and County fields below. If located within a township but not within a village, complete the Township and County fields. If the property is located within a village, complete the Township, Village, and County fields. City Township Village County WARREN MACOMB Street Address where personal property is located City State ZIP Code 21445 HOOVER ROAD SUITE 302 WARREN Mi 48089 List alt real property parcel numbers where the personal property reported on this form is located (attach list as necessary) N/A CERTIFICATION 1. I certify that | own, lease or otherwise occupy the real property on which the eligible manufacturing personal property is located, of | am the sole proprietor, partner, officer, managing member or the duly authorized agent of the owner, lessee or occupant (agent must attach letter of authority). . | certify thal the personal property for which an exemption is claimed pursuant to this Combined Document is Eligible Manufacturing Personal Property as defined by MCL. 211.9m and the personal property for which an exemption is being claimed meets the more than 50% requirement of being predominately used in industrial processing or direct integrated support and therefore qualifies or will qualify for exemption under MCL 211.9m or MCL 211.9. | certify my understanding that according to Public Act 92 of 2014, as amended, | am required to provide access to the books and records, for audit purposes, relating to the location and description; the dale of purchase, lease, or acquisition; and the purchase price, lease amount, or value of all personal praperty owned by, leased by, or in the possession of that person or a related entity if requested by the assessor of the townshi ~ w
Page 20
5278, Page 2
PART 2: Report of Fair Market Value (Acquisition Cost) of Qualified New and Previously Existing Personal Property
Qualified new personal property and qualified previously existing personal property located on occupied real property is exempt from local ad valorem
taxation and is instead subject to the Essential Services Assessment (ESA), payable lo the Michigan Department of Treasury. See instructions, page 2.
J Check if there is zero acquisition cost reported in the total in Part 2, Section B, below. Unless this box is checked, failure to report
acquisition cost in Section B may result In rescission of the EMPP exemption for this parcel.
xX Check if the personal property reported on this form includes leased personal property for which the election of lessee report is being filed.
The taxpayer must complete the Election of Lessee Report of Eligible Manufacturing Personal Property (Form 5467) and include it with this
copy of Form 5278 when filed with the local tax collecting unit.
Section A: Summary and Reporting Instructions for Essential Services Assessment
Provide a yes or no answer to all questions. The Acquisition Cost [MCL 211.1053(a)(i)] for all personal property mus! be reported in Section B below.
1.
Is the personal property reported on this Combined Document subject to an industrial Facilities Exemption Certificate
(P.A. 198 of 1974) that went into effect prior to December
31, 2012? If yes, attach a copy of the IFT certificate...
1 Yes
XI No
IFT Certificate
Certificate Begin Date
Certificate End Date
Number:
-
NOTE: The IFT Cerificate Number is typically seven digits, although some may also have an additional character that is entered in the dotted
field. Otherwise, leave the dotted box blank.
2.
Is the personal property reported on this Combined Document subject to a P.A. 328 (MCL 211.91) New Personal
Property exemption?
If yes, attach a copy of the PAA. 328 CEMIMICATE
............c...cvvvuoeeer erecta
es eee seees esses es sess es sees ess sesso
eee senses nn Yes
No
PA. 328
Certificate Begin Date
Certificate End Date
Certificate Number:
3.
Is the personal property reported on this Combined Document exempt from the Essential Services Assessment, and
either subject to or exempt from an Alternative Essential Services Assessment, as a result of a resolution adopted
under provisions of MCL 211.1059 by the Michigan Strategic Fund (MSF)? If yes, attach a copy of the MSF resolution. 1 Yes
No
MSF Certificate
Certificate Begin Date
Certificate End Date
Number:
-
4.
Is the personal property reported on this Combined Document subject to a Renaissance Zone Exemption?................ ] Yes
No
Renaissance Zone Name
Expiration Date
Section B: Report of Acquisition Cost
Report of Qualified New Personal Property (MCL 211.9m) and Qualified Previously Existing Personal Property {MCL 211.9n). For purposes of reporting in this section,
“Acquisition cost” means 100% of the fair market value of personal property al the time of acquisition by the first owner, including the cost of freight, sales lax, and installation,
and other capitalized costs, except capitalized interest, prior to any reduction of Fair Market Value provided for by statute. Report Construction in Progress (CIP) as defined
in MCL 211.9m(8)(c) in this part of the Document. For Construction in Progress, Acquisition Cost includes the cost of freight, sales tax, and installation. (See instructions for
more information on Construction in Progress.)
Year Placed in Service
Acquisition Cost [MCL 211.1053(a)(i)}
Year Placed in Service
Acquisition Cost [MCL 211.1053(a)(i)]
Construction in Progress
2019
2024
536,668
2018
2023
5,682,262
2017Page 21
Michigan Department of Treasury
F
=
5467 (Rev. 09-24), Page 1
2025
Election of Lessee Report of Eligible Manufacturing Personal Property
Issusd under (he authority of the General Property Tax Act, Public Act 2086 of 1893, and lhe Essential Services Assessment
Act, Public Act 92 of 2014. Filing is mandalory.
Leasing companies are not eligible lo receive the exemption for qualified new personal property and qualified previously existing parscnal property and
may nol use the Combined Document (Eligible Manufacturing Personal Property Claim, and Report of Fair Markel Value of Qualified New and Previously
Exisling Personal Property, Form 5278). Wilh respect to personal property that is the subject of a lease agreement, regardless of whether the agreement
constitutes a lease for financial or tax purposes,
if the personal property is or will be Eligible Manufacturing Personal Property, the lessee and lessor may
elect that the lessee report the eased eligible manufacturing personal property on Form 5278 and be responsible for any Essential Services Assessment
liability that results. To elect for the lessee to report the leased personal properly, at least some, but not necessarily all, personal property subject to the
lease agreement must be Eligible Manufacluring Personal Property as defined in MCL 211.9m and MCL 211.9n. Property subject lo the lease agreement
must be reported on Parl 2 and/or Part 3 of the Combined Document, as applicable.
To make this election, the lessee and lessor must complete this form in its entirely. In Part 3, list all parcel numbers included in this election. It must be
attached to Form 5278 when it is filed with the assessor of the local unit in which the property is located no later than February 20 or the March
Board of Review prior to its adjournment. Absent an election and lhe attachment of this form, the personal praperly shall be reported by the lessor on
the personal property statement pursuant to MCL 211.19. See MCL 211.1057(8).
PART 1: LESSEE INFORMATION
By signing below,
| elect that
| shall be responsible for reporting the leased personal property associaled with the aforementioned parcel on the
Combine
cument (Form 5278) and be responsible for any Essential Services Assessment liability that results,
Lesses Nan
Lesson Fodaral
Emplover identification Number (FEIN)
DISTRO 10 INC,
| Lessea Raprasentalive
Lessee Regrosentalive’s Tile
NEMER HADDAD
PRESIDENT
Losses Raprasentative
Si
Date
2-20-25
PART 2, ¥ESSCGR INFORMATION
By signing below,
| agree that the lessee named above shall be responsible for reporting the listed personal propery on the Combined Document
(Form 5278) and be responsible for any Essential Services Assessment liability that results.
re
Lessor Name
Lessor FEIN
GOLD STANDARD LEASING LLC
I
* Lessar's Representalive
essor
Represenialtive 5 Title
i BRANDON LOOMIS
PARTNER
Lessor Represeriial ve Signature
Date
SE
2-20 ~
C7
:
25
The.signatures of both parties on this form are
required to relieve the Lessor of its obligation to report leased personal property under
MCL 211.19. Signatures can be signed manually, by facsimile or electronically. Once this election is filed with the assessor,
it cannot be
revoked for the year the election is made.
{PART 3: PARCEL NUMBER INFORMATION
List below the parcel number on which the personal property was reported for the prior year, the parcel number it will be reported on for the current year.
the focal unit and county where the personal property parcels are located and the associated lease agreement expiration date. Include additional pages
if necessary. New personal property reported for the first time, nol previously reported by the lessor, will report only the current year parcel number
where the personal property wil be reported, the local unit, county and lease agreement expiration date. Note this election appies to all subsequently
acquired personal property under the associated lease agreement. Form 5467 will be filed once and the election will remain in place unless revoked
or unt! the lease agreement expiration. Lessees will annually provide the Part 3 informalion with each Form 5278 filed. See form 5278 for additional
filing instructions
—
a
Lease Agreement
Parcel Number Reporting
Local Unit
County
Expiration Date
Lessor Previous Year:
Lessee Current Year: 12.99-02-217-200
WARREN
MACOMBPage 22
Exhibit D
Page 23
WARREN Lori Stone, Mayor City Assessor's Office One City Square, Suite 310 Warren, Michigan 48093 (586) 574-4532 2025- NOTICE OF BOARD OF REVIEW ACTION DISTRO 10 INC DATE: 3/20/2025 21445 HOOVER STE 302 B.O.R. PETITION #: P038 WARREN, MI 48089 PARCEL NUMBER: 12-99-02-217-200 PROPERTY ADDRESS: 21445 HOOVER STE 302 Dear Property Owner: The City of Warren Board of Review has reviewed the Assessor's records of your property and the information you supplied for your appeal. After due consideration of all the data necessary to compute your Assessed and Taxable Values, they have made the following determination: Original Assessed Value: 1,450,000 Board of Review Assessed Value: 1,450,000 Original Taxable Value: 1,450,000 Board of Review Taxable Value: 1,450,000 (If the above amounts are the same, no revisions have occurred) Property Classification: 251 (COMMERCIAL PERSONAL) Commercial Personal Board of Review Decision: APPEAL OF EMPP DENIAL. DENIED INSUFFICIENT EVIDENCE. If you appealed the ASSESSED and/or TAXABLE VALUE of your property, or filed a POVERTY EXEMPTION request with the Board of Review, and you are not satisfied with their decision, you may further your appeal to the Michigan Tax Tribunal (MTT). If you elect to proceed with an appeal to the MTT, you must file a Small Claims Petition Form, which is available at www.michigan.gov/taxtrib. The MTT will then send you a Notice of Docket Number. For property classified as RESIDENTIAL, you MUST file your Petition no later than July 31. For property classified as COMMERCIAL, INDUSTRIAL, UTILITY, or PERSONAL, you MUST file your Petition no later than May 31. For Entire Tribunal appeals, Petitions should be mailed to: Michigan Tax Tribunal P.O. Box 30232