SBA Bear Lake MTT 24-003437 evidence letter.pdf
Sba Structure Inc. Site Mi 20723, Petitioner V Township Of Bear Lake, Respondent · 24-003437-TT
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BDO USA, LLP, a Delaware limited liability partnership, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms. 2929 Allen Parkway, 20th Floor Houston, TX 77019-7100 Tel: 713-960-1706 Fax: 713-960-9549 www.bdo.com March 10, 2025 Michigan Tax Tribunal PO Box 30323 Lansing, MI 48909 Re: Evidence SBA Structure Inc. Site MI 20723 MTT Docket No.:24-003437 Township of Bear Lake – Kalkaska Co. Acct: 40-001-898-001-00 To Whom It May Concern: The tower site under appeal, has been idle/inactive since 12/31/2021, confirmed by the attached email from SBA’s Sr. Tax Mgr. Michigan does recognize idle equipment, form 2698. Even though a tower is considered a building on leased land, it is rendered each year just as business personal property is also filed likewise. We are not asking for the full depreciation of the tower if we used form 2698, but we are using the form as a guide for a lower value. We are asking for a new value for the tower to be $60,000 FMV or $30,000 TV/AV. Kind Regards, Brent Wornat BDO USA PC 2929 Allen Parkway, Floor 20 Houston, TX 77019 bwornat@bdo.com 713-407-3201 Cc: Bear Lake Twp assessor, Kalkaska Co
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Attention: This email was sent from someone outside of BDO USA. Always use caution when opening attachments or clicking links from unknown senders or when receiving unexpected emails. From: Ernanda Parisotto To: Brent Wornat; Denise Prade Subject: RE: [External] MI20723 2024 MTT appeal Idle site inspection request Date: Thursday, February 27, 2025 8:10:26 AM Attachments: image001.jpg Brent, Yes, we do give permission, but they will need a gate code. Denise, Please ask the RSM for the gate code so that the assessor can enter the tower site. Thank You Ernanda Parisotto Sr. Manager, Indirect Tax 561.226.9484 + T 561.226 5978 + F From: Brent Wornat <bwornat@bdo.com> Sent: Thursday, February 27, 2025 9:02 AM To: Denise Prade <DPrade@sbasite.com> Cc: Ernanda Parisotto <eparisotto@sbasite.com> Subject: RE: [External] MI20723 2024 MTT appeal Idle site inspection request All: Does the assessor have permission to enter the tower site under appeal? Denise’s reply email did specify. Thanks. Brent Wornat STS-SALT Senior 713-407-3201 (Direct) 406-3201 (Internal) 713-960-9549 (Fax) bwornat@bdo.com BDO 2929 Allen Parkway, 20th Floor Houston, TX 77019 UNITED STATES 713-960-1706 www.bdo.com From: Denise Prade <DPrade@sbasite.com>
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Attention: This email was sent from someone outside of BDO USA. Always use caution when opening attachments or clicking links from unknown senders or when receiving unexpected emails. Sent: Thursday, February 27, 2025 7:45 AM To: Brent Wornat <bwornat@bdo.com> Subject: RE: [External] MI20723 2024 MTT appeal Idle site inspection request Good Morning Brent, Thank you! Denise Prade Manager, Property Tax SBA Communications Corporation 8051 Congress Avenue Boca Raton, FL 33487-1307 561.226.9370 + T 561.226.5960 + F DPrade@sbasite.com Your Signal Starts Here. From: Brent Wornat <bwornat@bdo.com> Sent: Wednesday, February 26, 2025 3:07 PM To: Ernanda Parisotto <eparisotto@sbasite.com>; Denise Prade <DPrade@sbasite.com> Cc: Jeffrey Shamma <jshamma@bdo.com> Subject: [External] MI20723 2024 MTT appeal Idle site inspection request Ernanda and Denise: The assessor for Bear Lake assessor office (MI20723) has requested permission to enter the site for inspection. The appeal was filed as an “idle/naked site”. There may be a chance for a reduction in value if the assessor can see for themselves that the site is not working. The formal appeal hearing date is 4-1-25. We may be able to resolve informally if permission is granted soon. Thanks. Brent Wornat STS-SALT Senior 713-407-3201 (Direct) 406-3201 (Internal) 713-960-9549 (Fax) bwornat@bdo.com
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BDO 2929 Allen Parkway, 20th Floor Houston, TX 77019 UNITED STATES 713-960-1706 www.bdo.com BDO USA, P.C., a Virginia professional corporation, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms. IMPORTANT NOTICES The contents of this email and any attachments to it may contain privileged and confidential information from BDO USA, P.C. This information is only for the viewing or use of the intended recipient. If you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution or use of, or the taking of any action in reliance upon, the information contained in this e-mail, or any of the attachments to this e-mail, is strictly prohibited and that this e-mail and all of the attachments to this e-mail, if any, must be immediately returned to BDO USA, P.C. or destroyed and, in either case, this e-mail and all attachments to this e-mail must be immediately deleted from your computer without making any copies hereof. If you have received this e-mail in error, please notify BDO USA, P.C. by e-mail immediately. BDO USA, P.C., a Virginia professional corporation, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms. IMPORTANT NOTICES The contents of this email and any attachments to it may contain privileged and confidential information from BDO USA, P.C. This information is only for the viewing or use of the intended recipient. If you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution or use of, or the taking of any action in reliance upon, the information contained in this e-mail, or any of the attachments to this e-mail, is strictly prohibited and that this e-mail and all of the attachments to this e-mail, if any, must be immediately returned to BDO USA, P.C. or destroyed and, in either case, this e-mail and all attachments to this e-mail must be immediately deleted from your computer without making any copies hereof. If you have received this e-mail in error, please notify BDO USA, P.C. by e-mail immediately.
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1 Michigan State Tax Commission Personal Property Frequently Asked Questions September 2016
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10 consideration, the property must be reported on Form L-4142 (Treasury Form 2698) and the cost totals carried over to Line 12 of the Summary and Certification on page 1 of the personal property statement. Such property should not be reported elsewhere on the personal property statement. Reference: Michigan Compiled Laws 211.19 and the Instructions to Form L-4142 (Treasury Form 2698) What is “idle” personal property? “Idle” personal property is personal property which is part of a discontinued process and which is stored in a separate location from the place or places where business is conducted. The full requirements are stated in the instructions to Treasury Form 2698. If a particular item of property is so large that it is impractical for it to be stored in a separate location, it may be “idle” in place, if it is disabled from use in a manner that satisfies the assessor. A process which has been temporarily suspended is not a discontinued process and the personal property used in that process does not qualify as “idle.” Personal property held for use on a stand-by basis is not “idle.” Equipment which is part of a process which is being actively marketed for sale to third party vendees (purchasers) as a complete process for use at the same location is not deemed to be part of a discontinued process. Only personal property normally reported on page 2 of the personal property statement (Sections A through F) may be reported as “idle.” A taxpayer who believes that personal property normally reported elsewhere on the personal property statement, or on one of the forms attached to the statement, suffers impaired value due to obsolescence or otherwise, must address that issue directly with the assessor. Such property cannot be reported as “idle.” Reference: Michigan Compiled Laws 211.19 and the Instructions to Form L-4142 (Treasury Form 2698) What is “obsolete or surplus” personal property? “Obsolete or surplus” personal property is personal property which has been declared surplus or obsolete and is either being actively marketed for unconditional sale to third parties on Tax Day or requires rebuilding for continued economic use and is actually in the hands of a machinery rebuilding firm on Tax Day. Personal property which is being offered within a company internally to other divisions is not being actively marketed to third parties. The full requirements are stated in the instructions to Treasury Form 2698. Equipment which is part of a process which has been temporarily suspended or which is being actively marketed in place for sale to third party vendees as a complete process does not qualify as “obsolete or surplus” personal property. Only personal property normally reported on Page 2 of the personal property statement (Sections A through F) may be reported as “obsolete or surplus.” A taxpayer who believes that personal property normally reported elsewhere on the personal property statement, or on one of the forms attached to the statement, suffers impaired value due to obsolescence or otherwise must address that issue directly with the assessor. Such property cannot be reported as “obsolete or surplus.” Reference: Michigan Compiled Laws 211.19 and the Instructions to Form L-4142 (Treasury Form 2698) Are buildings, communications towers and other improvements which I have placed on real property reported on my personal property statement? Generally, real property structures and improvements are not reported on your personal property statement. However, if you are a tenant, or if you have otherwise placed a structure or improvements on real property which is owned by someone else, you are required to report such
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11 structures or improvements on your personal property statement. In some cases this report will result in a personal property assessment (or an increased assessment) to you, in other cases the report will result in your receiving a separate real property assessment and in still other cases, the report will result in a review of the real property assessment of the landowner. The costs incurred by you for leasehold improvements (improvements to a landlord’s structure) are reported in Section M on page 4 of the personal property statement. The cost incurred for the erection of freestanding signs and billboards and the cost incurred for the erection of buildings and other structures, such as freestanding communications towers, is reported in Section N on page 4 of the personal property statement. Non-freestanding signs and equipment which you have placed on leased land, or on land which you are otherwise using, are reported in the appropriate section on page 2 of the personal property statement. See State Tax Commission Bulletin 8 of 2002 and Bulletin 1 of 2003 which can be found at http://www.michigan.gov/treasury/0,1607,7-121-1751_2228-164455--,00.html . Reference: Michigan Compiled Laws 211.19 and the Instructions to Form L-4175 (Treasury Form 632) How are freestanding signs and billboards reported by the owner and valued by the assessor? Freestanding signs and billboards are reported in Section N, page 4, of the personal property statement and are valued using a replacement cost less depreciation methodology, rather than through the use of any of the State Tax Commission’s valuation multiplier tables. The assessor is expected to measure the sign or billboard and evaluate its physical condition and utility, and then estimate the current replacement cost of the sign or billboard. Depreciation is then applied to reflect the current effective age of the property. Non-freestanding signs and billboards are reported in Section A, page 2, of the personal property statement. By specific statutory provision, both freestanding and non-freestanding signs and billboards are assessed as personal property. Reference: Michigan Compiled Laws 211.19, Michigan Complied Laws 211.34c(3)(b)(ii) and the Instructions to Section N, Page 4 and Section A, Page 2 of Form L-4175 (Treasury Form 632), along with State Tax Commission Bulletin 8 of 2002 and Bulletin 1 of 2003 which can be found at http://www.michigan.gov/treasury/0,1607,7-121- 1751_2228-164455--,00.html What is a personal property “move-in” and how do I report a “move-in”? The “move-in” procedure was initiated by the State Tax Commission to assure compliance with a tax limitation provision of the Michigan Constitution. The reporting of “move-ins” does not increase or decrease the taxpayer’s assessment and does not directly affect the rate of taxation that is applied to the assessment. A “move-in” is an item of assessable personal property which is located within a given assessment jurisdiction on Tax Day of the current reporting year but which was not assessed in the jurisdiction on the previous Tax Day. All “move-ins” except acquisitions of new personal property (property which is properly reported on the top acquisition year line of a section), must be reported to the assessor on Treasury Form 3966, in addition to being reported in the appropriate section on page 2 of the personal property statement. Items of personal property which are commonly reported as “move-ins” include personal property which was located in another assessment jurisdiction or outside Michigan on the previous Tax Day, personal property which was exempt on the previous Tax Day, personal property which was mistakenly omitted from the personal property statement on the previous Tax Day and purchases of used personal
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Michigan Department of Treasury 2698 (Rev. 06-24) 2025 Idle Equipment, Obsolete Equipment, and Surplus Equipment Report (as of 12-31-24) INSTRUCTIONS: Idle, obsolete and surplus equipment may qualify for additional depreciation. Read the instructions on page 2 of this form to determine whether your personal property may qualify for treatment as idle, obsolete or surplus equipment. You may also contact the assessor or the State Tax Commission. If you qualify, you must complete Form 2698 and attach it to your Form 632 (L-4175), Personal Property Statement. This schedule is subject to audit. An inspection may be required. Report original total cost of equipment including sales tax, freight and installation. Assets reported on Form 2698 as idle, obsolete or surplus equipment should not be reported in any other section on Form 632 (L-4175), Personal Property Statement. Owner's Name Doing Business As Mailing Address (Street or RR#, City, State, ZIP Code) Business Location (Street or RR#, City or Township, State, ZIP Code) Name of Person to Contact Telephone Number Parcel Number Section A - Including Furniture = Section C - Including Rental and Fixtures Assessor Calculations Videotapes and Games Assessor Calculations 2024 .364 2024 .304 2023 -320 2023 .212 2022 .276 2022 116 2021 244 . 2021 020 2020 212 Prior .020 2019 .188 2018 168 TOTALS | c1 c2 2017 .148 Section D - Including Office, Electronic, 2016 132 Video and Testing Equipment | Assessor Calculations 2015 116 2024 .336 2014 -108 2023 .256 2013 .096 2022 .220 2012 .088 2021 .196 2011 .076 2020 .176 2010 .048 2019 164 Prior .048 2018 152 2017 .140 TOTALS | a1 A2 2016 ED) Section B - Including Machinery 2015 124 and Equipment Assessor Calculations 2014 116 2024 .356 2013 112 2023 .304 2012 .104 2022 268 2011 .100 2021 .240 2010 .068 2020 .216 Prior 068 2019 .196 2018 80 TOTALS | pq D2 2017 .168 2016 .152 NOTE: This form continues on the reverse side and 2015 144 must be signed by an owner, partner, corporate officer 2014 .132 or duly authorized representative. 2013 124 2012 116 2011 112 2010 .092 Prior .092 TOTALS | g1 B2
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Section E - Including Consumer - Page 2 Coin Operated Equipment | Assessor Calculations 2024 368 Section F - Including Computer f————————————= 2023 340 Equipment Assessor Calculations 2022 308 2024 .240 2021 .276 2023 176 2020 .244 2022 .128 2019 .216 2021 .096 2018 .184 2020 .076 2017 152 2019 .060 2016 120 2018 .032 2015 .092 Prior .032 2014 .060 Prior "060 TOTALS| F1 F2 TOTALS |_E1 E2 Cost Grand Total (For Idle, Obsolete or Surplus Equipment) Taxpayer: Add totals from the cost columns of Sections A-F (A1- through F1). Enter grand total and carry to line 12a, page 1, of Form 632(L-4175). Taxpayer , hereby attest that, to the best of my knowledge and belief, all of the property listed on this form is idle equipment or obsolete or surplus equipment as those terms are defined in the instructions below. True Cash Value Grand Total (For Idle, Obsolete or Surplus Equipment) Assessor: Add True Cash Value totals from Sections A-F (A2 through F2) Enter grand total here Assessor and carry to line 12b, page 1, of Form 632 (L-4175). Signature Date Title (Please print or type) Must be signed by Owner, Partner, or Corporate Officer or duly appointed representative. INSTRUCTIONS This form is for use in reporting idle equipment and obsolete or surplus equipment as defined in these instructions. For purposes of completing this form, the allocation of personal property to Sections A through F shall be made in accordance with the instructions for completion of Sections A through F of Form 632 (L-4175), Personal Property Statement. Both idle equipment and obsolete or surplus equipment will be reduced by the assessor to 40% of the value obtained by applying the normal State Tax Commission personal property multipliers to original acquisition costs. Read the following descriptions of idle equipment and obsolete or surplus equipment to determine whether your personal property may qualify to be reported on this form. Only property that would otherwise be reported on Sections A-F of Form 632 (1-4175), may be claimed as idle or obsolete or surplus equipment. If you have personal property that qualifies, complete this form and file it with Form 632 (L-4175). Assets reported as idle equipment or obsolete or surplus equipment should not be reported on Sections A through F of Form 632 (L-4175). You must add the totals from Sections A through F (A-1 through F1) and insert this sum in the "Cost Grand Total" box above. This "Cost Grand Total" must be carried to line 12a of the "Summary and Certification" contained on page 1 of Form 632 (L-4175). Idle Equipment and Obsolete or Surplus Equipment Idle equipment is equipment that has been disconnected and stored in a separate location. This equipment is not part of an existing process, not even on a standby basis. Obsolete or surplus equipment is equipment that either: Requires rebuilding for continued economic use and is in the possession of a machine rebuilding firm on tax day, or * Has been declared as surplus by an owner who is abandoning a process or plant and is being disposed of by means of an advertised sale or through an agent. The sale must be an unconditional sale to any and all prospective purchasers rather than being restricted to other divisions of a company. Equipment cannot qualify as idle or obsolete or surplus until it has been placed in service. Equipment that is operating on tax day does not qualify for treatment as idle equipment or obsolete or surplus equipment. Standby equipment is not idle equipment or obsolete or surplus equipment. Standby equipment is equipment that is not usually in use but is ready and immediately on hand for use when needed, e.g., a standby boiler or standby production machines. The allowances for idle or obsolete and surplus equipment are available only in cases where a process has been discontinued or where individual items of property are being liquidated on a piecemeal basis. A process that has been temporarily suspended and/or which is being marketed as a complete process, for continued use at the same location, does not qualify for treatment as idle or obsolete and surplus. Sometimes equipment, for various reasons, is normally not used throughout the year (c.g, Holiday and seasonal decorations, construction equipment) or is normally used only on an intermittent basis. This type of equipment does not qualify for the idle or obsolete or surplus treatment when it is seasonally or intermittently used. Sometimes, equipment may be "idle-in-place" because storage in a separate location is not feasible. This might be due to the large size of the equipment involved or the fact that it is underground equipment. Proof should be presented to the assessor that equipment is "idle-in-place."