23-002443 2023 FOJ exceptions 2024 sever.pdf
Jado Northern Michigan LLC, Petitioner V Township Of Benzonia, Respondent · 24-003619-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 JADO Northern Michigan LLC, MICHIGAN TAX TRIBUNAL Petitioner, SMALL CLAIMS DIVISION v MTT Docket Nos. 23-002443 & 24-003619 Benzonia Township, Presiding Judge Respondent. Patricia L. Halm FINAL OPINION AND JUDGMENT ORDER SEVERING 2024 TAX YEAR AND ASSIGNING IT DOCKET NUMBER 24-003619 The Tribunal issued a Proposed Opinion and Judgment (POJ) on July 16, 2024. The POJ states, in pertinent part, “[t]he parties have 20 days from date of entry of this POJ to notify the Tribunal in writing, by mail or by electronic filing, if available, if they do not agree with the POJ and to state in writing why they do not agree with the POJ (i.e., exceptions).” On August 5, 2024, Respondent filed exceptions to the POJ. In the exceptions, Respondent states that the POJ treats all 11 parcels identically, while the evidence shows that parcels 02-450-400-20, 02-450-400-21, 02-450-400-28, and 02-450-400-29 should not be discounted because they are adjacent to completed roads and improvements. Pursuant to the reasoning of the Administrative Law Judge (ALJ) in the POJ, lots adjacent to completed roads with improvements have a higher value than the lots with no completed roads that will require further infrastructure improvements. While parcels 02-450-400-28 and 02-450-400-29 were not part of the appraisal submitted by Petitioner, they are a part of this appeal and should be valued in light of their proximity to the existing road, utilities, and improvements. In addition, both Respondent’s evidence and Petitioner’s appraisal show that parcels 02-450-400-20 and 02-450-400- 21 are served by a completed portion of Wild Laurel Lane in a manner similar to parcels 018 and 019. Petitioner has not filed exceptions to the POJ or a response to Respondent’s exceptions. The Tribunal has considered the exceptions, the response, and the case file and finds that the ALJ erred in rendering the POJ. Specifically, Petitioner’s appraiser witness testified that while parcels 02-450-400-28 and 02-450-400-29 were not included in the
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MTT Docket Nos. 23-002443 & 24-003619 Page 2 of 7 appraisal, they do have roads leading up to them and as a result are worth more once a Homeowners Association (HOA) is in place. As such, the Tribunal finds that these two parcels are worth more than those without roads leading up to them; however, not the full value assigned by Respondent as there was no evidence indicating utilities or other infrastructure are in place as well as there being no HOA in place. As there is no evidence on record indicating the value for parcels having only a road in place, the Tribunal finds it appropriate to add one-third of the value between a parcel with no roads, infrastructure, or HOA, and a parcel with a road, infrastructure, and an HOA in place. Therefore, the Tribunal finds a TCV of $52,000 is appropriate for parcels 02-450- 400-28 and 02-450-400-29. After a review of the evidence and testimony on record, the Tribunal finds the evidence does not support Respondent’s contention that parcels 02- 450-400-20 and 02-450-400-21 are adjacent to a road. Therefore, these two parcels are not worth more than the values established in the POJ. The ALJ considered the testimony and evidence submitted and made specific findings of fact and conclusions of law pertaining to the 2023 tax year. The ALJ’s determination, as modified above, is supported by the testimony, evidence and applicable statutory and case law. Neither party provided any relevant evidence of value for the 2024 tax year, however, and “the Tribunal may not automatically accept a respondent's assessment, but must make its own findings of fact and arrive at a legally supportable true cash value.”1 As such, the Tribunal shall sever the 2024 tax year, assign it a new docket number, and parties will be ordered to file pleadings specific to the 2024 tax year. Given the above, Respondent has shown good cause to justify modifying the POJ.2 As such, the Tribunal modifies the POJ, as indicated herein,and adopts the modified POJ as the Tribunal’s final decision in this case.3 The Tribunal also incorporates by reference, the Findings of Fact and Conclusions of Law contained in the POJ, as modified herein, in this Final Opinion and Judgment. As a result: a. The property’s true cash value (TCV), state equalized value (SEV), and taxable value (TV), as established by the Board of Review (BOR) for the tax year at issue, are as follows: Parcel Number: 02-450-400-20 Year TCV SEV TV 2023 $125,000 $62,500 $20,171 1 Jones & Laughlin Steel Corp v City of Warren, 193 Mich App 348, 355; 483 NW2d 416 (1992) (Citing Pinelake Housing Cooperative v Ann Arbor, 159 Mich App 208, 220; 406 NW2d 832 (1987)); Consolidated Aluminum Corp v Richmond Twp, 88 Mich App 229, 232-233; 276 NW2d 566 (1979)). 2 See MCL 205.762. 3 See MCL 205.726.
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MTT Docket Nos. 23-002443 & 24-003619 Page 3 of 7 Parcel Number: 02-450-400-21 Year TCV SEV TV 2023 $125,000 $62,500 $20,171 Parcel Number: 02-450-400-22 Year TCV SEV TV 2023 $125,000 $62,500 $14,008 Parcel Number: 02-450-400-23 Year TCV SEV TV 2023 $125,000 $62,500 $14,008 Parcel Number: 02-450-400-24 Year TCV SEV TV 2023 $125,000 $62,500 $14,008 Parcel Number: 02-450-400-25 Year TCV SEV TV 2023 $125,000 $62,500 $14,008 Parcel Number: 02-450-400-26 Year TCV SEV TV 2023 $125,000 $62,500 $14,008 Parcel Number: 02-450-400-27 Year TCV SEV TV 2023 $125,000 $62,500 $14,008 Parcel Number: 02-450-400-28 Year TCV SEV TV 2023 $125,000 $62,500 $20,171 Parcel Number: 02-450-400-29 Year TCV SEV TV 2023 $125,000 $62,500 $20,171 Parcel Number: 02-450-400-30 Year TCV SEV TV 2023 $125,000 $62,500 $20,171 Parcel Number: 02-450-400-31 Year TCV SEV TV 2023 $125,000 $62,500 $20,171
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MTT Docket Nos. 23-002443 & 24-003619 Page 4 of 7 b. The property’s TCV, SEV, and TV, as determined by the Tribunal for the tax year at issue, are as follows: Parcel Number: 02-450-400-20 Year TCV SEV TV 2023 $26,000 $13,000 $13,000 Parcel Number: 02-450-400-21 Year TCV SEV TV 2023 $26,000 $13,000 $13,000 Parcel Number: 02-450-400-22 Year TCV SEV TV 2023 $26,000 $13,000 $13,000 Parcel Number: 02-450-400-23 Year TCV SEV TV 2023 $26,000 $13,000 $13,000 Parcel Number: 02-450-400-24 Year TCV SEV TV 2023 $26,000 $13,000 $13,000 Parcel Number: 02-450-400-25 Year TCV SEV TV 2023 $26,000 $13,000 $13,000 Parcel Number: 02-450-400-26 Year TCV SEV TV 2023 $26,000 $13,000 $13,000 Parcel Number: 02-450-400-27 Year TCV SEV TV 2023 $26,000 $13,000 $13,000 Parcel Number: 02-450-400-28 Year TCV SEV TV 2023 $52,000 $26,000 $20,171 Parcel Number: 02-450-400-29 Year TCV SEV TV 2023 $52,000 $26,000 $20,171
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MTT Docket Nos. 23-002443 & 24-003619 Page 5 of 7 Parcel Number: 02-450-400-30 Year TCV SEV TV 2023 $26,000 $13,000 $13,000 Parcel Number: 02-450-400-31 Year TCV SEV TV 2023 $26,000 $13,000 $13,000 IT IS SO ORDERED. IT IS FURTHER ORDERED that the 2024 tax year shall be SEVERED and assigned Docket No. 24-003619. IT IS FURTHER ORDERED that Petitioner shall file a petition pertaining to the 2024 tax year within 21 days of the entry of this Order.4 The petition shall note the docket number assigned by the Tribunal for the 2024 tax year and if filed utilizing the Tribunal’s e-filing system, must be filed on the assigned 2024 docket number as a “Severed Petition.” IT IS FURTHER ORDERED that the Tribunal shall issue a Notice of Docket after receipt of the petition. IT IS FURTHER ORDERED that the officer charged with maintaining the assessment rolls for the 2023 tax year shall correct or cause the assessment rolls to be corrected to reflect the property’s true cash and taxable values within 20 days of entry of this Final Opinion and Judgment, subject to the processes of equalization.5 To the extent that the final level of assessment for a given year has not yet been determined and published, the assessment rolls shall be corrected once the final level is published or becomes known. IT IS FURTHER ORDERED that the officer charged with collecting or refunding the affected taxes shall collect taxes and any applicable interest or issue a refund within 28 days of entry of this Final Opinion and Judgment. If a refund is warranted, it shall include a proportionate share of any property tax administration fees paid and penalty and interest paid on delinquent taxes. The refund shall also separately indicate the amount of the taxes, fees, penalties, and interest being refunded. A sum determined by the Tribunal to have been unlawfully paid shall bear interest from the date of payment to the date of judgment, and the judgment shall bear interest to the date of its payment. A sum determined by the Tribunal to have been underpaid shall not bear interest for any time period prior to 28 days after the issuance of this Final Opinion and Judgment. Pursuant to MCL 205.737, interest shall accrue (i) after December 31, 2020, through 4 Alternatively, the petition may be downloaded from the Tribunal’s website and mailed to the Tribunal via United States Postal Service at: Michigan Tax Tribunal, PO BOX 30232, Lansing, MI 48909. The petition may also be delivered to the Tribunal via overnight carrier (UPS, FedEx, or DHL) at: Michigan Tax Tribunal, 2nd Floor MTT, 2407 N. Grand River Avenue, Lansing, MI 48933. 5 See MCL 205.755.
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MTT Docket Nos. 23-002443 & 24-003619 Page 6 of 7 June 30, 2022, at the rate of 4.25%, (ii) after June 30, 2022, through December 31, 2022, at the rate of 4.27%, (iii) after December 31, 2022, through June 30, 2023, at the rate of 5.65%, (iv) after June 30, 2023, through December 31, 2023, at the rate of 8.25%, (v) after December 31, 2023, through June 30, 2024, at the rate of 9.30%, and (vi) after June 30, 2024, through December 31, 2024, at the rate of 9.50%. This Final Opinion and Judgment resolves all pending claims in this matter and closes Docket No. 23-002443. APPEAL RIGHTS If you disagree with the final decision in this case, you may file a motion for reconsideration with the Tribunal or a claim of appeal with the Michigan Court of Appeals. A motion for reconsideration must be filed with the Tribunal with the required filing fee within 21 days from the date of entry of the final decision. Because the final decision closes the case, the motion cannot be filed through the Tribunal’s web-based e-filing system; it must be filed by mail or personal service. The fee for the filing of such motions is $50.00 in the Entire Tribunal and $25.00 in the Small Claims Division, unless the Small Claims decision relates to the valuation of property and the property had a principal residence exemption of at least 50% at the time the petition was filed or the decision relates to the grant or denial of a poverty or disabled veterans exemption and, if so, there is no filing fee. You are required to serve a copy of the motion on the opposing party by mail or personal service or by email if the opposing party agrees to electronic service, and proof demonstrating that service must be submitted with the motion. Responses to motions for reconsideration are prohibited and there are no oral arguments unless otherwise ordered by the Tribunal. Alternatively, you may file a claim of appeal with the Michigan Court of Appeals. If the claim is filed within 21 days of the entry of the final decision, it is an “appeal of right.” If the claim is filed more than 21 days after the entry of the final decision, it is an “appeal by leave.” A copy of the claim of appeal must be filed with the Tribunal to certify the record on appeal. There is no certification fee. By _____________________________ Entered: October 3, 2024 ssm/bm
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MTT Docket Nos. 23-002443 & 24-003619 Page 7 of 7 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 provide by those parties, attorneys, or authorized representatives. By: Tribunal Clerk