Clare A Mock Declaration of Trust.pdf
Clare A Mock Declaration Of Trust, Petitioner Vs. Township Of Burr Oak, Respondent · 25-003773-TT
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RECEIVED 0cT 3 1 2025 MICHAEL J. CAYWOOD mike@haascaywood.com HAAS [GN AWVAOI@]D) yom MICHIGAN Jjoe@haascaywood.com TAX TRIBUNAL JACOB M. PORTER ATTORNEYS & C.0U NEL QRS Jjacob@haascaywood.com TIFFANY E. EDWARDS tiffany@haascaywood.com OLIVIA A. KURAJIAN olivia@haascaywood.com October 24, 2025 RAYMOND H, DRESSER (1901-1968) Dept. of Licensing and Regulatory Affairs Jo ns Michigan Tax Tribunal RAYMOND H. DRESSER JR. PO Box 30232 (1931-2013) Lansing, MI 48909 Re: Clare A. Mock Declaration of Trust v. Butt Oak Township Entire Tribunal Docket No. Dear Clerk: Enclosed for filing please find the original plus return copy of Petitioner's Entire Tribunal Petition, together with this firm's check in the amount of $250.00, which represents the appropriate filing fee. Following filing, please return time stamped copies of the Petition to me in the enclosed self- addressed /stamped envelope. Please let me know if you have any questions regarding the enclosed. Thank you for your attention to this request. Yours very truly, HAASCAYWOOD PC MJC/meg Enc. Lie to MI Tax Tribunal 2025-10-24 2619-2.docs TranInfo:4606 26069532-1 10/30/25 Chkit: 40945 Ant: $250.00
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STATE OF MICHIGAN DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS MICHIGAN TAX TRIBUNAL CLARE A. MOCK DECLARATION OF TRUST Docket No. DATED DECEMBER 11, 1996, Parcel No. 75-001-013-008-00 Petitioner, v. BURR OAK TOWNSHIP, Respondent. MICHAEL J. CAYWOOD (P59905) TIFFANY E. EDWARDS (P83462) HAASCAYWOOD PC Attorneys for Petitioner 21 W. Chicago Street Coldwater, Michigan 49036 517-278-4410 mike@haascaywood.com tiffany@haascaywood.com PETITION FOR APPEAL Petitioner, Sturgis Bank & Trust and Maxine M. Mock, as Co-Trustees of the Clare A. Mock Declaration of Trust Dated December 11, 1996, as amended (the "Clare Trust"), petitions the Michigan Tax Tribunal for the recapping of the taxable value of real property located in Burr Oak Township, Michigan. In support, Petitioner states: 1. Respondent is a Michigan municipal corporation in St. Joseph County, Michigan. 2. Petitioner, Clare Trust, is managed by Co-Trustees Sturgis Bank & Trust and Maxine M. Mock. 3. Co-Trustee, Sturgis Bank & Trust, is a financial institution whose principal office is 113-125
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5.
Petitioner, Clare Trust, is the record owner of the subject property.
6.
Petitioner is a party in interest with respect to the subject property desctibed in this Petition.
7.
This Tribunal has subject matter jurisdiction over this appeal.
Subject Property
8.
The subject property ("Property")
is the following teal propetty located in Burr Oak
Township:
a)
V-L Butt Oak Rd. Burr Oak, MI 49030 - Patcel 75 001 013 008 00.
9.
The Property is classified as 102 Agricultural real property as shown in the attached GIS
repotts (Exhibit A).
Underlying Facts
10. Mz. Clare A. Mock is the Settlor of the Clare Trust.
11. The Property was transferred from Clare A. Mock to the Clare Trust on December 11, 1996.
12. The Clare Trust was amended in 2016 to specify that the Clare Trust net income, and
potentially principal, would go to his siblings, Eatl Mock and Maxine Mock, upon Clare's death, with
third parties as contingent remainder beneficiaries after the death of the surviving sibling. See Clare
Trust, Article IV.A. (Exhibit B).
13. Clare passed away in 2017.
14. Eatl passed away in 2018.
15. Maxine is still alive and is the last sutviving sibling.
16. Maxine uses the property as the sole present beneficiary of the Clare Trust.Page 4
Uncapping of Taxable Value 18. As of 2025, the Assessor for Burt Oak Township, Dale Hutson, has determined to uncap the taxable value of the Property in the year following the death of Clare, regardless of whether the property remains in the Clate Trust or is distributed later, or whether the life-term interest received by Maxine is substantially equal to the fee value of the propesty, or whether a Qualified Agricultural Property Affidavit is filed. 19. On September 21, 2025, Mr. Hutson issued Notices of Uncapping for the tax years 2019, 2020, 2021, 2022, 2023, and 2024 (Exhibit C). 20. During a discussion to contest the Notices of Uncapping held on Thursday, October 2, 2025 between Mr. Hutson, Sturgis Bank & Trust, and the undersigned counsel on behalf of Sturgis Bank & Trust, Mt. Hutson indicated that he believed Clate passed away in 2018 and began uncapping as of 2019. 21. Sturgis Bank & Trust cotrected Mr. Hutson's understanding to clarify that Clare passed away in 2017. 22. Mr. Hutson indicated that he would file a notice of uncapping for 2018 as well, based on the fact that Clate passed away in 2017, although no notice of uncapping for 2018 has yet been issued. 23. As Mr. Hutson described his process, he wotks ahead on the next year's database as of March, so the Propetty has already uncapped for 2025 and 2026, although no notices have yet been issued. 24. Mt. Hutson further indicated that the Trustee can backdate penalties and fees at 1% per month and determines them to be automatically and immediately "due" and delinquent at that time.
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27. The facts upon which Petitioner relies to invoke the Tribunal's authority over the ptiot tax years stems from Mr. Hutson's blanket uncapping of all tax years following the death of Clare A. Mock in 2017, and that Clare's death is not a sufficient reason for uncapping the Property's taxable value. 28. The values for the Property as established by Respondent's Notices of Uncapping (Exhibit C) are: V-L Burr Before Before Amount of Correction Oak Rd Correction Cotrection (TV) | Inctease/ (SEV) Decrease 2018 2019 107300 26150 81150 107300 2020 126700 26646 82692 109338 2021 119600 27019 83849 110868 2022 120500 27910 86616 114526 2023 122000 29305 90947 120252 2024 133800 30770 95494 126264 2025 2026 29. Petitioner contends that the values for the Property should not be uncapped and any increase in the taxable value should be limited to the lesset of the Propetty's taxable value in the immediately preceding year minus any losses, multiplied by the lesser of 1.05 or the inflation rate, plus all additions, ot the Property's cutrent state equalized value, putsuant to MCL 211.27a(2)(a). Argument 30. Petitioner argues that the death of a Clare Mock does not automatically create an uncapping event under MCL 211.27a(6) because it does not constitute a transfer of title or a present interest including beneficial use of the property substantially equal the fee value of the property.
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years, the statute restricts the Trustee from receiving a refund for taxes "collected" prior to the adjustment but makes no mention of taxes that are "due". 33. In both Stephenson v. Park Township and Stephenson v. Mendon Township, Mark A. Stephenson challenged the uncapping of taxable values for agticultural properties that were transferred from his deceased mothet's trust. 34. In the Park Township case, the subject property was transferred to the Jean Esther Stephenson Revocable Trust in 2002, with Jean Stephenson's children as contingent beneficiaries. a) Jean Stephenson died on August 29, 2021, and a deed from the Trust to Petitioner was executed in December 2022 and recorded on February 21, 2023. b) The QAPs were also recorded on February 21, 2023. ¢) Park Township uncapped the subject property's taxable value for the 2022 tax year following the recording of these documents. d) Petitioner did not file a PTA with the township as required. 35. The Mendon Township case involved similar facts and issues, with the Tribunal ultimately finding in favor of Stephenson. 36. In both cases, the properties maintained their qualified agricultural status throughout the relevant time periods. 37. Under Michigan law, taxable value is determined pursuant to MCL 211.27a, with annual increases limited to 5% or the rate of inflation, whichever is less. MCL 211.27a. 38. In the year following a transfer of ownership, however, taxable value is set equal to the state
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40. "Beneficial use" (defined in MCL 211.27a(11)(b)) means, "the right to possession, use, and enjoyment of propetty, limited only by encumbtances, easements, and restrictions of record.” 41. Michigan law requires notification to assessing officers within specific timeframes for ownership transfers. MCL 211.27a. 42. The statute provides that entities "shall notify the assessing officer on a form provided by the state tax commission not mote than 45 days after a conveyance of an ownership interest that constitutes a transfer of ownership." MCL § 211.27a. 43. For qualified agricultural property, MCL 211.27a(7)(0) provides an exception to transfer of ownership if "the person to whom the qualified agticultural propetty is transferred files an affidavit with the assessor of the local tax collecting unit in which the qualified agricultural property is located and with the register of deeds for the county in which the qualified agricultural property is located attesting that the qualified agricultural property will temain qualified agricultural property." 44. MCL 211.27a(8) provides for recapping when specific conditions are met, requiring local tax collecting units to "revise the taxable value of qualified agricultural property taxable on the tax roll in the possession of that local tax collecting unit to the taxable value that qualified agricultural property would have had if there had been no transfer of ownership": (8) If all of the following conditions are satisfied, the local tax collecting unit shall revise the taxable value of qualified agricultural property taxable on the tax roll in the possession of that local tax collecting unit to the taxable value that qualified agricultural property would have had if there had been no transfer of ownership of that qualified agricultural property since December 31, 1999 and there had been no adjustment of that qualified agticultural property's taxable value under subsection (3) since December 31, 1999: (a) The qualified agticultural property was qualified agricultural property for
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45. Regarding calculation of overpayments, underpayments, and refunds, MCL 211.27b provides for the adjustment of taxable value and the levy of taxes, interest and penalties for the untimely filing of the notice of transfer exemption required by MCL 211.27a(10). 46. Although MCL 211.27a(9) restricts the disbursement of refunds for property taxes “collected” before an adjustment made under MCL 211.27a(8), it does not address property taxes that are "due": (9) If the taxable value of qualified agricultural property is adjusted under subsection (8), the owner of that qualified agricultural property is not entitled to a refund for any property taxes collected under this act on that qualified agricultural property before the adjustment under subsection (8). 47. In Stephenson v. Mendon Township, the Ttibunal examined the calculation of sums paid, underpaid, interest pursuant to MCL 205.737, which describes how the adjustment made under MCL 211.27a(8) may result in a refund of overpaid taxes, fees, penalties, and interest: "If a refund is warranted, it shall include a proportionate shate 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." 48. The statutory framework does not provide a mechanism for PTAs to retroactively recap taxable values for prior tax yeats—the 45-day notification requirement serves as a procedural safeguard to ensure timely assessment adjustments, but failure to comply results in uncapping without a statutory remedy for recapping through late PTA filing. MCL § 211.27a. 49. In both Stephenson cases, the failure to file PTAs within the required timeframe contributed
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51. In the case of the Clare Trust, the beneficiaties, Fatl and Maxine, received an interest in the real estate following the death of the Settlor, Clare, however, it was not a transfer as contemplated by the uncapping framework because it was not transferred by deed and the present interest (including beneficial use) was subject to mote than "only" the encumbrances, easements, and restrictions of record as the term is defined by MCL 211.27a(11)(b). 52. The beneficiaries’ interest was in fact subject to a remainder interest held by third parties in addition to general rights such as creditor claims and other probate exemptions. 53. Further, the present beneficiaries only gained the right to distributions of income and principal from the Trust during their lifetime. 54. The value of a life estate is not substantially equal to the value of the fee interest, both in terms of monetary value as well as the fact that Maxine does not receive a fee simple absolute interest — third patties retain future interest rights as remainder beneficiaries. 55. The QAP affidavit provisions demonstrate greater flexibility for retroactive relief: MCL 211.27a(8) specifically addresses situations where qualified agricultural affidavits are filed after the transfer occurs, providing a statutory mechanism for recapping. MCL 211.27a. 56. The statute requires that: (1) the qualified agricultural property maintained its status for taxes levied in 1999 and each year thereafter, and (2) the owner files an affidavit under subsection (7)(o). Id. 57. The Park Township case illustrates this principle, whete the Tribunal found that "all of the conditions are met, and the subject property's TV should be recapped for 2022" despite the late filing of the qualified agticultural affidavit, which demonstrates that QAP affidavits can indeed recap
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taxable value of qualified agricultural property when an affidavit under MCL 211.27a(7)(0) is not filed within the year of the transfer of title of the qualified agticultural property, but is filed later." 59. In the context of the Clare Trust, the filing of a QAP for properties that meet the statutory tequitements should be recapped for all years dating back to the death of the trust settlor. 60. Further, the Tribunal's use of the word "collected" instead of "due" reveals important distinctions in tax obligation timing and enforceability. a) The term "due" appears in contexts establishing when obligations arise, while "collected" refers to actual payment receipt. b) Conversely, the qualified agricultural property recapping provisions specifically reference taxes "collected," indicating that the prohibition on refunds applies only to amounts actually received by the taxing authority. MCL 211.27a. ¢) This distinction suggests that uncollected taxes subject to recapping adjustments may be modified and refunded as necessary without the statutory prohibition. 61. The Park Township decisions statement that Petitioner "is not entitled to a refund of any taxes collected as a result of the uncapping” emphasizes the finality of collected amounts while implying that uncollected amounts remain subject to adjustment. 62. Similarly to the tax tribunal's holding in the cases described above, the uncapping of real estate held by the Clare Trust will result in appealable error due to the misapplication of law or adoption of a wrong principle. Michigan Bell Tel Co v Dep't of Treasury, 445 Mich 470, 476; 518 NW2d 808 (1994).
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64. In contrast, QAP affidavits can recap previous years when filed late, provided the property maintained its qualified agricultural status and other statutory conditions are met. 65. The penalty structure for late filing is set forth by MCL 211.27b, however, QAP affidavits filed after an uncapping determination is made face no monetary penalties aside from the preclusion of refunds of previously collected taxes. 66. The Tribunal's textual distinction between "collected" and "due" reflects important timing considerations in tax obligation enforcement and adjustment mechanisms. 67. Ultimately, the real estate held in the Clare Trust should be recapped for all years following the death of the settlots due to the lack of a "transfer", and is further exempt for each agricultural property under MCL 211.27a(0) because it will remain qualified agricultural property. 68. Accordingly, the required PTAs and QADPs for the recapping of the real estate held in the Clare Trust will be filed on ot around the time of filing this Petition. 69. Petitioner hereby ptesetves all legal rights, arguments, claims, defenses, and the like, related to the amounts in dispute, for reasons including but not limited to the recency of the Notices of Uncapping and the inability to obtain appraisals ot other valuation methods to dispute the values asserted in the Notices of Uncapping, to the extent they exist for purposes of the appeal process. 70. Petitioner further presetves all legal rights, arguments, claims, defenses, and the like, related to the issues on appeal and the underlying uncapping, for reasons including but not limited to the recency of the Notices of Uncapping and the inability to obtain appraisals ot other valuation methods to dispute the values asserted in the Notices of Uncapping, to the extent they exist for purposes of the
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WHEREFORE, Petitioner requests that this Tribunal enter judgment in favor of Petitioner; find that the taxable value of the Property must remain capped (or, as may be applicable, recapped); adjust the taxable value accordingly; and award Petitions such other and further relief as may be just and propet, including their costs and attorneys' fees. HAASCAYWOOD PC — Date: _\D roms Michgel J. Caywo6od (59905) Tiffany E. Edwards (P83462) Attorneys for Petitioner
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VERIFICATION I declare under the penalties of perjury that this Petition has been examined by me and that its contents ate true to the best of my information, knowledge, and belief. Sturgis Bank & Trust, Co-Trustee of the Clate A. Mock Declaration of Trust Dated December 11, 1996 pe [0/24/2025 y: Aaron Miller Its: Trust Officer Maxine M. Mock, Co-Trustee of the Clare A. Mock Declaration of Trust Dated December 11, 1996 Date: PE - 02% WW ahing m ib By: Maxine M. Mock |
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PETITION Exhibit A - St. Joseph County GIS Reports
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St. Joseph GIS Parcel Report: 001 013 008 00 10/2/2025 5:09:18 PM Property Address BURR OAK RD Owner Address "MOCK CLARE A TRUST i Unit: - Unit Name: 33471 KIBILOSKI RD BURR OAK, MI 49030 General Information for 2025 Tax Year 001 BURR OAK
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PRE 2024: 100% PRE 2025: 100% Prev Year Info MBOR Assessed 2024 $133,800 2023 $122,000 Land Information Final Taxable $30,770 $29,305 Acreage: 43.73 Tax Description S1/2N 1/2 SW 1/4 SEC 13 T7S ROW. EXC COM SW COR SD SEC TH N 1326.25 FT TO POB EXC TH N 444.71 FT THN 89D 57M 20S E 614.90 FT TH S 00D 14M 41S W 444.72 FT TH S 89D 57M 20S W 613 FT TO POB EXC. ALSO SW 1/4 NW 1/4 SE 1/4 SD SEC. EST 43.49 A+/-. Sales Information Sale Date: 10-28-2005 Sale Price: 105500 Instrument: WD Grantor: MOCK CLARE A TRUST Grantee: COOPER MATTHEW W & SANDY M Terms of Sale: 03-ARM'S LENGTH Liber/Page: 1338/366 Sale Date: 09-06-2001 Sale Price: 0 Instrument: OTH Grantor: GARNER MERLE IRENE Grantee: MOCK CLARE A-TRUST Terms of Sale: 07-DEATH CERTIFICATE Liber/Page: / Sale Date: 12-11-1996
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Sale Date: 05-16-1990 Sale Price: 60000 Instrument: WD Grantor: GARNER MERLE | Grantee: MOCK CLARE A Terms of Sale: 03-ARM'S LENGTH Liber/Page: 0600/465 Delinquent Tax Information *DOES NOT include unpaid taxes on PERSONAL PROPERTY No Records Found Tax History +Total Due as of settlement date Tax Details 2025 Summer School Dist. Code: 75020 School Dist. Name: BURR OAK Property Class: 102 Class Name: AGRICULTURAL Last Payment Date: Base Tax: $332.64 Admin Fees: $0.00 Interest Fees: $0.00 Total Tax & Fees: $332.64 Tax Items 2025 Summer Tax Source Millage Rate STATE EDUCATION 6 COUNTY OPERATING 4.4863 Tax Details 2024 Winter School Dist. Code: 75020 School Dist. Name: BURR OAK Property Class: 102 Class Name: AGRICULTURAL Assessed Value: Taxable Value: State Equalized Value: Exemption Percent: Base Paid: Admin Fees Paid: Interest Fees Paid: Total Paid: Tax Amt. 190.33 142.31 Assessed Value: Taxable Value: State Equalized Value: Exemption Percent: $164,800 $31,723 $164,800 100% $0.00 $0.00 $0 $0.00 Base Amt. Paid $0.00 $0.00 $133,800 $30,770 $133,800 100%
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Tax Source UNIT OPERATING COUNTY COA COUNTY 911 COUNTY ROAD COUNTY TRANSPORT COUNTY PARKS LOCAL SCHOOL OP SCH SINKING FUND ST JOE ISD OP ST JOE ISD SP ED ST JOE ISD SP EV STJOE ISD CTE GLEN OAKS CC SCHOOL OPER FC Millage Rate 0.8813 0.75 0.993 Tax Detalls 2024 Summer School Dist. Code: School Dist. Name: Property Class: Class Name: Last Payment Date: Base Tax: Admin Fees: Interest Fees: Total Tax & Fees: Tax tems 2024 Summer Tax Source STATE EDUCATION COUNTY OPERATING BURR OAK 102 AGRICULTURAL September 1, 2024 $323.58 $0.00 $0.00 $323.58 Millage Rate 6 4.5162 Tax Amt. 27.11 23.07 30.55 30.77 10.14 7.65 0.00 91.08 6.96 74.87 8.98 30.49 83.32 0.00 Assessed Value: Taxable Value: State Equalized Value: Exemption Percent: Base Paid: Admin Fees Paid: Interest Fees Paid: Total Paid: Tax Amt. 184.62 138.96 Base Amt. Paid $27.11 $23.07 $30.55 $30.77 $10.14 $7.65 $0.00 $91.08 $6.96 $74.87 $8.98 $30.49 $83.32 $0.00 © $133800 $30,770 $133,800 100% $323.58 $0.00 $0 $323.58 Base Amt. Paid $184.62 $138.96
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School Dist. Code: School Dist. Name: Property Class: Class Name: Last Payment Date: Base Tax: Admin Fees: Interest Fees: Total Tax & Fees: Tax Items 2023 Winter 75020 BURR OAK 102 AGRICULTURAL December 21, 2023 $405.38 $0.00 $0.00 $405.38 Millage Rate Tax Source UNIT OPERATING 0.8887 COUNTY COA 0.7456 COUNTY 911 0.9942 COUNTY ROAD 0.9942 COUNTY TRANSPORT 0.33 COUNTY PARKS 0.2492 LOCAL SCHOOL OP 18 SCH SINKING FUND 2.9712 ST JOE ISD OP 0.2267 ST JOE ISD SP ED 2.4383 ST JOE ISD SPEV 0.2925 ST JOE ISD CTE 0.9932 GLEN OAKS CC 2.7109 SCHOOL OPERFC 18 Tax Details 2023 Summer ‘School Dist, Code: 75020 School Dist. Name: BURR OAK Property Class: 102 Assessed Value: Taxable Value: State Equalized Value: Exemption Percent: Base Paid: Admin Fees Paid: Interest Fees Paid: Total Paid: Tax Amt. 26.04 21.84 29.13 29.13 9.67 7.30 0.00 87.07 6.64 71.45 8.57 29.10 79.44 0.00 Assessed Value: Taxable Value: State Equalized Value: $122,000 $29,305 $122,000 100% $405.38 $0.00 $0 $405.38 Base Amt. Paid $26.04 $21.84 $29.13 $29.13 $9.67 $7.30 $0.00 $87.07 $6.64 $71.45 48.57 $29.10 $79.44 $0.00 $1 22,000 h $29,305 $122,000 100%
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Tax Source Millage Rate Tax Amt. Base Amt. Paid STATE EDUCATION [3 175.83 $175.83 COUNTY OPERATING 4.5217 132.50 $132.50 Application Use: This map is neither a fegally recorded map nor a survey and ts not intended to be used as such. The information on St. Joseph County websites, are distributed and transmitted ‘as is” without warranties of any kind, either expressed or implied, including without limitations, warranties of title or implied warranties of merchantability or fitness for a particular purpose. St. Joseph County does not guarantee the accuracy, timeliness, or completeness of the information on this website. GIS/Mapping: The Geographic Information System (GIS) made available through this website is developed and maintained by St. Joseph County. Use of materials and information constitutes acceptance of all disclaimers associated with these websites. GIS data is not the official record of the County. This data is made available for information purposes anly!
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PETITION Exhibit B - Clare Trust, as Amended
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DECLARATION OF TRUST
I, CLARE A. MOCK, a resident of the Township of Burr Oak, County of St. Joseph
and State of Michigan, declare myself trustee of the property transferred to this Trust.
1 have
also caused or may cause the death benefits under any insurance policies on my life to be made
payable at my death to the successor trustee then acting hereunder.
The trust property, all
rights as beneficiary of those policies, the proceeds of those policies when received, any
property added to the trust in accordance with the provisions of this instrument, and
all
investments
and reinvestments
thereof ("trust principal")
shall
be held upon
the terms
hereinafter provided.
I have no spouse and no children. My heirs at law are as follows:
MAXINE MOCK, sister
EARL J. MOCK, brother
ARTICLE]
This instrument, and the initial trust hereby evidenced, as from time to time amended,
may
be
designated
the
"CLARE
A. MOCK DECLARATION
OF TRUST DATED
Aestee
vy
1976
KPage 23
A. The trustee shall distribute to me or apply for my benefit such amounts of net income and principal, even to the extent of exhausting principal, as the trustee believes desirable from time to time for my health, support in reasonable comfort, best interests, and welfare, considering all circumstances and factors deemed pertinent by the trustee. Any undistributed net income shall be accumulated and added to principal, as from time to time determined by the trustee. B. In addition, the trustee shall distribute to me or others such amounts of net income and principal as I may from time to time direct in writing, except that if the trustee believes that I am unable to manage my business affairs properly because of advanced age, illness, or other cause, the trustee may, in the trustee's sole discretion, decide not to honor my written direction. C. During any period in which I am unable to properly care for my affairs, my Successor Trustee as hereinafter named, shall become trustee in my place. The Successor Trustee shall determine whether I am able to properly care for my affairs. When making such determination, the Successor Trustee may rely upon my written request or if I am incapable of doing so, the Successor Trustee may consult with my physician and siblings in making such determination. The Successor Trustee, in determining to act or cease acting under this paragraph, may conclusively rely on a written medical opinion issued by a licensed medical doctor.
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welfare, medical, dental, hospital, or similar care of me. In providing nursing home or permanent care, the Trustee shall require that any establishment, agency or facility providing the care for me provide: 1. Reasonable comfort and maintenance as the standard of living which I had maintained up to the time of admission. 2, Medical and nursing care of adequate quality, which covers all conditions of physical and mental infirmities attended upon old age. 3. The best care and comfort in all situations relating to health, medical, dental, hospital, nursing expenses and expenses of invalidism (except major hospitalization) as I would have provided for the rest of my life. ARTICLE IIT Following my death, the trustee shall pay out of the trust principal all (a) my legally enforceable debts, including debts owed by me to a trustee individually, except debts which are an encumbrance on real property, (b) the expenses of my last illness and funeral, (c) the administration expenses payable by reason of my death, and (d) the estate, inheritance, and succession taxes (including interest and penalties, if any, but excluding any generation-skipping taxes) payable in any jurisdiction by reason of my death (including those administration expenses and taxes payable with respect to assets which do not pass under this trust). Despite
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trustee shall certify in writing to the personal representative of my probate estate, if any, the extent to which the principal available for payment of the preceding items is or will be insufficient. The preceding items shall be paid by the trustee without seeking reimbursement, recovery, or contribution from any person, except that if no personal representative of my probate estate is appointed within six months after my death, the trustee shall, to the maximum extent permitted by law, seek reimbursement for, recovery of, or contribution toward the payment of those taxes attributable to property in which I have a qualifying income interest for life or over which I have a power of appointment. ARTICLE IV A. As of the date of my death, but after providing for the payments, if any, required by Article II of this instrument, the trustee shall distribute the remaining trust assets (including property to which the trustee may be entitled under my will or from any other source) as follows: 1. If my brother, EARL J. MOCK or my sister, MAXINE MOCK, survives me, then commencing as of the date of my death and during the life of my brother and sister, the Trustee shall distribute to my brother and sister and the survivor of the two, so much of the net income and principal of my Trust estate, even to the extent of exhausting principal, as the Trustee believes desirable from time to time for the health, support and
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(a) the Trustee may make unequal distributions to my brother and sister, or may exclude one or more of them, and shall have no duty to equalize those distributions. 2. Upon the death of the last to die of my siblings and me, the remaining principal of the trust shall be divided into equal shares and distributed to MICHIGAN STATE UNIVERSITY, East Lansing, Michigan, WESTERN MICHIGAN UNIVERSITY, Kalamazoo, Michigan, and the GLEN OAKS COMMUNITY COLLEGE FOUNDATION, Centreville, Michigan and the Trust shall terminate. B. Understanding the size of the corpus of the trust that may be established hereunder, I do hereby authorize the trustee to commingle the trust funds in one trust pool for the purposes of investment and administration but with separate accountings to be maintained for each beneficiary. ARTICLE V The provisions of this Article shall apply to each trust held under this instrument: A. If at any time a beneficiary eligible to receive net income or principal distributions is under legal disability, or in the opinion of the trustee is incapable of properly managing his or her financial affairs, then the trustee may make those distributions directly to the beneficiary, to a lawful guardian of the beneficiary, or may otherwise expend the amount to
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the individual having personal custody (whether or not a court-appointed guardian) where no conservator has been appointed. B. Among the circumstances and factors to be considered by the trustee in determining whether to make discretionary distributions of net income or principal to a beneficiary are the other income and assets known to the trustee to be available to that beneficiary and the advisability of supplementing such income or assets. C. Except as otherwise provided by law, no interest of any beneficiary shall be subject to anticipation, to claims for alimony or support, to voluntary transfer without the written consent of the trustee, or to involuntary transfer in any event. D. If at any time after my death the trustee shall determine that the trust is of a size that is no longer economical to administer, the trustee, without further responsibility, may (but need not) distribute the trust to the beneficiary for whom the trust is named. E. Notwithstanding any other provision of this instrument, at the end of ninety years after the date of my death, the trustee shall distribute the principal and all accrued or undistributed net income of the trust to the beneficiary for whom the trust is named. ARTICLE VI A. The trustee shall have the following powers with respect to each trust held under this instrument, exercisable in the discretion of the trustee:
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special, or limited), even though the trustee could not properly purchase the property as a trust investment and though its retention might violate principles of investment diversification; 2. To sell at public or private sale, wholly or partly for cash or on credit, contract to sell, grant or exercise options to buy, convey, transfer, exchange, or lease (for a term within or extending beyond their term of the trust) any real or personal property of the trust, and to partition, dedicate, grant easements in or over, subdivide, improve, and remodel, repair, or raze improvements on any real property of the trust, and in general to deal otherwise with the trust property in such manner, for such prices, and on such terms and conditions as any individual might do as outright owner of the property; 3. To borrow money at interest rates then prevailing from any individual, - bank, or other source, irrespective of whether any such individual or bank is then acting as trustee, and to create security interests in the trust property by mortgage, pledge, or otherwise; 4, To invest in bonds, common or preferred stocks, notes, real estate mortgages common trust funds, shares of regulated investment companies, currencies, partnership interests (whether general, special, or limited), or other securities or property, real or personal, domestic or foreign, including partial interests, such as life estate, term or remainder interests, without being limited by any statute or rule of law governing investments by trustees; 5. To make allocations, divisions, and distributions of trust property in cash
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of unrealized gain for federal income tax purposes; and to determine the value of any property so allocated, divided, or distributed; 6. To make such elections and allocations under the tax laws as the trustee deems advisable without regard to the relative interests of the beneficiaries; the trustee shall not make adjustments between principal and income, or in the interests of the beneficiaries, to compensate for the effects of such elections and allocations; and any decision made by the’ trustee with respect to the exercise of any tax election or allocation shall be binding and conclusive on all persons; 7. To exercise in person or by general or limited proxy all voting and other rights, powers, and privileges and to take all steps to realize all benefits with respect to stocks or other securities; and to enter into or oppose, alone or with others, voting trusts, mergers, consolidations, foreclosures, liquidations, reorganizations, or other changes in the financial structure of any corporation; 8. To cause any security or other property to be held, without disclosure of any fiduciary relationship, in the name of the trustee, in the name of a nominee, or in. unregistered form; 9. To pay all expenses incurred in the administration of the trust, including reasonable compensation to any trustee, and to employ or appoint and pay reasonable compensation to accountants, depositories, investment counsel, attorneys, attorneys-in-fact,
Page 30
11. To compromise or abandon any claim in favor of or against the trust; 12. To lend money to, and to purchase property from, the personal representative of my estate and retain it for any period of time without limitation, and without liability for loss or depreciation in value, notwithstanding any risk, unproductivity, or lack of diversification; 13. To commingle for investment purposes the property of the trust with the property of any other trust held hereunder, allocating to each trust an undivided interest in the commingled property; 14. To receive any property, real or personal, to be added to the trust by lifetime or testamentary transfer or otherwise, if the trustee consents in writing; 15. To execute instruments of any kind, including instruments containing covenants and warranties binding upon and creating a charge against the trust property and containing provisions excluding personal liability; and 16. To use and expend the trust income and principal to (i) conduct or cause to be conducted environmental investigations of the trust property, including environmental audits, assessments, site monitoring, laboratory analyses, testing, title histories, aerial photographs, public and private records reviews, and any related inquiries arising out of or in any way related to liability or claims under federal; state or local environmental statutes, regulations, ordinances, requirements, demands of government authorities or policies or under
Page 31
appropriate federal, state or local authorities either on its own accord or in response to an actual or threatened violation of environmental laws; (iii) institute legal proceedings, claims and demands concerning environmental hazards, contamination or condition of the trust property, or contest, pay, compromise, settle or comply with legal proceedings, claims, demands, orders, penalties, fines and damages brought or imposed by federal, state or local government authorities or by a private litigant; and (iv) employ agents, consultants and legal counsel to assist with or perform the above undertakings or actions. Any expenses or costs. incurred by the trustee under this subparagraph may be charged against income or principal as the trustee shall determine. 17. To perform all other acts necessary for the proper management, investment, and distribution of the trust property. 18. To retain any farm property, even though that property may constitute all or a large portion of the trust principal, and to acquire other farm property; to engage in farm products, including livestock breeding and feeding, poultry farming, and dairy farming, whether by operating directly with hired labor, by retaining farm managers or management agencies (including any such agency which is in any way affiliated with the corporate trustee), * or by renting on shares or for cash; to enter into farm programs; to purchase or rent farm machinery and equipment; to purchase livestock, poultry, fertilizer, seed and feed; to improve the farm property and to repair, improve, and construct farm buildings, fences, irrigation
Page 32
B. The powers granted in this Article shall be in addition to those granted by law and may be exercised even after termination of all trusts hereunder until actual distribution of all trust principal, but not beyond the period permitted by any applicable rule of law relating to perpetuities. C. To the extent that such requirements can legally be waived, no trustee hereunder shall ever be required to give bond or security as trustee, or to qualify before, be appointed by, or account to any court, or to obtain the order or approval of any court respecting the exercise of any power or discretion granted in this instrument. Pursuant to Michigan Revised Probate Code Section 801(2), the trustee shall not register the trust with a Probate Court of the State of Michigan, unless the trustee otherwise elects. D. The trustee's exercise or nonexercise of powers and discretions in good faith shall be conclusive on all persons. No person paying money or delivering property to any trustee hereunder shall be required or privileged to see to its application. The certificate of the trustee that the trustee is acting in compliance with this instrument shall fully protect all persons dealing with a trustee. E. This instrument and all dispositions hereunder shall be governed by and interpreted in accordance with the laws of the State of Michigan. F. The Certificate of Trustee that it is acting according to the terms of this instrument shall fully protect all persons dealing with Trustee.
Page 33
A. Any trustee may resign at any time by giving prior written notice to me, if I am then living, or if I am not then living, to the beneficiary or beneficiaries to whom the current trust income may or must then be distributed. B. If I cease to act as trustee hereunder for any reason, I name EARL J. MOCK and CITIZENS BANK of Sturgis, Michigan as Co-Trustees hereunder. If EARL J. MOCK ceases to act as trustee herein for any reason, I name MAXINE MOCK, as Co-Trustee and if she is unable or refuses CITIZENS BANK shall act as sole Trustee. Except as otherwise provided in paragraphs D and E of this Article, if CITIZENS BANK, Sturgis, Michigan ceases to act as trustee hereunder for any reason, or if any successor ‘trustee appointed as hereinafter provided ceased to act as trustee hereunder for any reason, the person or persons indicated in - paragraph ot this Article shall, by written instrument, appoint any bank or trust company, within the State of Michigan, as successor co-trustee. C. The person or persons indicated in —o this Article may at any time, by written instrument, approve the accounts of the trustee with the same effect as if the accounts had been approved by a court having jurisdiction of the subject matter and of all necessary parties. D. If any corporate trustee designated to act or at any time acting hereunder is merged with or transfers substantially all of its assets to another corporation, or is in any other manner reorganized or reincorporated, the resulting or transferee corporation shall become
Page 34
if then living, or after my death, by a majority in number of the beneficiaries to whom the current trust income may or must then be distributed. If any person so entitled to act is then under legal disability, the instrument of appointment or approval may be signed by the lawful. guardian of such person on his or her behalf. F. The incumbent trustee shall have all of the title, powers, and discretion granted to the original trustee, without court order or act of transfer. No successor trustee shall be personally liable for any act or failure to act of a predecessor trustee. With the approval of the person or persons indicated in paragrap this Article who may approve the accounts of the trustee, a successor trustee may accept the account furnished, if any, and the property delivered by or for a predecessor trustee without liability for so doing, and such acceptance shall be a full and complete discharge to the predecessor trustee. ARTICLE VIII A. I reserve to myself all rights now or hereafter vested in me as owner of any life insurance policies made payable to the trustee, including the rights to change beneficiaries, to borrow money (from the issuing companies, the banking department of any corporate trustee acting hereunder, or others) using the policies as security, to surrender the policies for cash, to receive dividends and all other payments available to the owner, and to withdraw any policies held by the trustee (in which event the trustee shall have no duty to seek their return).
Page 35
may substantially increase the duties of the trustee or decrease trustee compensation without the written consent of the trustee, and if this instrument is completely revoked, all trust property and policies of insurance held by the trustee shall be transferred and delivered to me or as I may otherwise direct in writing. As settlor and initial trustee, I now sign this declaration of trust on ee J] 19_7¢ WITNESSES: low RB 27 Jed} Clare A. Mock
Page 36
FIRST AMENDMENT TO THE CLARE A. MOCK DECLARATION OF TRUST DATED DECEMBER 11, 1996 This "First Amendment” to the Clare A. Mock Declaration of Trust dated December 11, 1996, is made and enteted into on December 16, 2016. A. RECITALS Clate A. Mock executed and enteted into the Clare A. Mock Declaration of Trust dated December 11, 1996 (the "Clate Mock Trust"). In Article VIII of the Clare Mock Trust, the right to amend or revoke the Clare Mock Trust was reserved to Clare A. Mock as Settlor. At the time of this First Amendment, Clare A. Mock is the Trustee of the Clare Mock Trust. NOW, THEREFORE, pursuant to Article VIII of the Clare Mock Trust, Clate A. Mock hereby amends the Clare Mock Trust as follows: Amendment to Article IV of the Clare Mock Trust. Asticle IV is hereby deleted and replaced in its entitely as follows: ARTICLE IV A. As of the date of my death, but after providing for the payments, if any, required by Article III of this instrument, the Trustee shall distribute the remaining trust assets (including property to which the trustee may be entitled under my will or from any other source) as follows: 1. If my brother, EARL J. MOCK or my sister, MAXINE M. MOCK, survives me, then commencing as of the date of my death and during the life of my brother and sister, the Trustee shall distribute to my brother and sister and the sutvivor of the two, so much of
Page 37
(a) the Trustee may make unequal distributions to my brother and sister, or may exclude one or mote of them, and shall have no duty to equalize those distributions. 2. Upon the death of the last to die of my siblings and me, the remaining principal of the trust shall be distributed as follows: @ If living, the items listed below shall be distributed to DOUGLAS R. WALL, whose address is 63925 Butt Oak Rd, Bust Oak, Michigan 49030. If DOUGLAS R. WALL is not living at the time of the last to die of my siblings and me, then the distributions to him shall lapse and become a patt of the distributions set forth in Article IV.A.2(b). ® My John Deere 6405 tractor and any related attachments. ® My brush, wood and gravity wagons (3 total wagons). * Any real property remaining in the Trust estate. (b) All of the rest and residue of the my Trust estate shall be divided into equal shares and distributed to MICHIGAN STATE UNIVERSITY, East Lansing, Michigan, WESTERN MICHIGAN UNIVERSITY, Kalamazoo, Michigan, and the GLEN OAKS COMMUNITY COLLEGE FOUNDATION, Centreville, Michigan. Upon the completion of the distributions set forth in Article IV.A.2, the Trust shall terminate, B. Understanding the size of the corpus of the trust that may be established hereunder, I do hereby authorize the Trustee to commingle the trust funds in one trust pool for the purposes of investment and administration, but with separate accountings to be
Page 38
19. My trustee has the authority to access, use, manage, copy, handle, distribute, deactivate, dispose, transfer, sell, assign, convey, release, delete, and control any of my digital assets, wherever situated (including the content thereof). My trustee has the authority to obtain, access, modify, control, and delete my passwords, enciyption codes, and any other electronic credentials associated with my digital assets. My digital assets shall include, without limitation, all of my: (A) electronic and digital devices that can receive, store, process, or send digital information, including, without limitation, computers, laptops, phones, tablets, peripherals, storage devices, servers, cloud-based data, and other digital processing and data content devices; (B) information created, generated, sent, communicated, received, or stored on a digital device or system that delivers or receives digital information (including, without limitation: digital music, sounds, digital photographs and images, digital videos, software licenses, social network accounts, file- sharing accounts, financial accounts, banking accounts, domain registrations, DNS service accounts, web hosting accounts, online storage accounts, other online accounts, and any other forms of digital content); (C) rights to own, possess, or use an electronic system for creating, generating, sending, receiving, storing, displaying, or processing information; (D) electronic communications (including, without limitation, videos, emails, email accounts, content, signs, signals, writings, images, sounds, data, or intelligence of any nature) sent by me or received by me, wherever stored, including, without limitation, on an electronic device that I own or in an account in my name at any setvice provider or digital custodian (no
Page 39
not be limited by, advancements in technology following the execution of this trust. This power to my trustee over my digital assets is only limited to the extent I have disposed of any digital asset pursuant to the online tools for any digital account during my Lifetime (for example, my Google account, my Facebook account, and any other digital account in which I have used the online tool). Amendment to Article VII of the Clare Mock Trust. Asticle VII is hereby deleted and replaced in its entirely as follows: ARTICLE VII A Any trustee may resign at any time by giving prior written notice to me, if am then living, or if I am not then living, to the beneficiary or beneficiaties to whom the current trust income may or must then be distributed. B. If I cease to act as trustee hereunder for any reason, I name BARL J. MOCK and STURGIS BANK AND TRUST COMPANY of Sturgis, Michigan as Co-Trustees hereunder. If EARL J. MOCK is unable or refuses to act as a Co-Trustee or otherwise ceases to act as Co-Trustee herein for any reason, I name MAXINE M. MOCK as Co-Trustee. If MAZXINE M. MOCK is unable or refuses to act as a Co-Trustee or otherwise ceases to act as Co-Trustee herein for any reason, I name DOUGLAS R. WALL as Co-Trustee. If DOUGLAS R., WALL is unable or refuses to act as a Co-Trustee or otherwise ceases to act as Co-Trustee herein for any reason, then Co-Trustee STURGIS BANK AND TRUST COMPANY shall act as sole Trustee. Except as otherwise provided in patagtaphs D and E of this Article, if STURGIS BANK AND TRUST COMPANY, Sturgis, Michigan ceases to
Page 40
paragraph F of this Article shall, by written instrument, appoint any bank ot trust company, within the State of Michigan, as successot Co-Trustee. C. The person or persons indicated in paragraph E of this Article may at any time, by written instrument, approve the accounts of the trustee with the same effect as if the accounts had been approved by a court having jurisdiction of the subject matter and of all necessary parties. D. If any corporate trustee designated to act ot at any time acting hereunder is mesged with or transfers substantially all of its assets to another corporation, or is in any other manner reorganized or reincorporated, the resulting or transferee corporation shall become trustee in place of its corporate predecessor. E. A successor trustee may be appointed and the accounts of the trustee may be approved pursuant to paragraph C of this Article by me, if then living, or after my death, by a majority in number of the beneficiaries to whom the current trust income may or must then be distributed. If any person so entitled to act is then under legal disability, the instrument of appointment or approval may be signed by the lawful guardian of such person on his or her behalf. FE. ‘The incumbent trustee shall have all of the title, powers, and discretion granted to the original trustee, without court order or act of transfer. No successor trustee shall be personally liable for any act or failure to act of a predecessor trustee. With the approval of the petson or persons indicated in paragraph E of this Article who may approve the accounts of
Page 41
4. Limitation on First Amendment. Except as otherwise amended by this First Amendment, 1 ratify, confirm, and republish the Clare Mock Trust, which otherwise remains in full force and effect. As settlor, I now sign this First Amendment to the Clare Mock Trust on December 16, 2016. WITNESSES: 2 ue # Wyk Clare A. Mock Michfiel, Caywood wd Poly fuila A. Bregitzer 1
Page 42
PETITION Exhibit C - Notices of Uncapping
Page 43
NOTICE OF UNCAPPING FROM HUTSON ASSESSING INC PARCEL IDENTIFICATION 60450 FARRAND RD. PARCEL GODE NUMBER: 75001 013 008 00 COLON, Mi 49040 TEMP- RETURN SERVICE REQUESTED PROPERTY ADDRESS: BURR OAK RD ‘ NAME AND ADDRESS OF OWNER OR PERSON NAMED ON ASSESSMENT ROLL: MOCK CLARE A TRUST 33471 KIBILOSKI RD BURR OAK Mi 48030 Appeal Rights Date of Uncapping: 09/21/2025 A transfer of ownership has occured on this property and the Taxable Value has been uncapped. Date of Transfer: 07/30/2018 Year uncapped: 2019 Percent uncapped: 100.00 If you believe this information is incorrect you may appeal to the Michigan Tax Tribunal by the filing of a petition within 35 days of this action. The petition must be a Michigan Tax Tribunal form or a form approved by the Michigan Tax Tribunal. Michigan Tax Tribunal forms are available at www.michigan.gov/taxtrib. The Property Tax Act directs an uncapping of Taxable Value the Year following a transfer of ownership. Contact my office if you have any questions. /s/ Dale Hutson Dale Hutson
Page 44
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PETITION Exhibit D - Stephenson Cases
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Sem, bE STATE OF MICHIGAN GRETCHEN WHITMER DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS MARLON I. BROWN, DPA GOVERNOR LANSING DIRECTOR Mark A Stephenson, MICHIGAN TAX TRIBUNAL Petitioner, SMALL CLAIMS DIVISION v MTT Docket No. 23-003622 Mendon Township, Presiding Judge Respondent. Patricia L. Halm FINAL OPINION AND JUDGMENT The Tribunal issued a Proposed Opinion and Judgment (POJ) on September 25, 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 September 30, 2024, Respondent filed exceptions to the POJ. In the exceptions, Respondent states the record reflects that the subject property has a mixed use of agricultural and residential and the qualified agricultural exemption (QAE) was reduced to 80.2%. MCL. 211.27a(8)(k) allows this change in use parcel to be entered into QAE from uncapping when a letter request is made to exclude the change in use from the program. Because no letter request was made, the Tribunal does not have authority to enter the parcel into the QAE program for recapping of the 2022 taxable value. On October 10, 2024, Petitioner filed a response to the exceptions. In the response, Petitioner states that this is the first time Respondent has raised this argument. Regardless, the Notice of Uncapping for Parcel No. 75-010-030-006-00 clearly states that the basis for uncapping was “failure on the part of the transferee (buyer) to timely file the Property Transfer Affidavit (form L-4260).” Furthermore, the Notice of Uncapping, which was dated September 12, 2023, was for the year 2022. Petitioner did not request that the Township separate the residence on the parcel from the QAE portion until October 25, 2023. As such, Respondent's exceptions are without merit. The Tribunal has considered the exceptions, the response, and the case file and finds that the Administrative Law Judge (ALJ) properly considered the testimony and
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MTT Docket No. 23-003622 Page 2 of 4 shown good cause to reverse the ALJ's proposed opinion. Given the above, Respondent failed to show good cause to justify modifying the POJ or granting a rehearing.’ As such, the Tribunal adopts the POJ as the Tribunal’s final decision in this case.? The Tribunal also incorporates by reference the Findings of Fact and Conclusions of Law contained in the POJ in this Final Opinion and Judgment. As a result: a. The properties’ TVs, as established by Respondent for the tax year at issue, are as follows: Parcel Number: 75-010-030-005-00 Year Ni 2022 $313,900 Parcel Number; 75-010-030-006-00 Year Tv 2022 $379,400 b. The properties’ final TVs, for the tax year at issue, are as follows: Parcel Number: 75-010-030-005-00 Year Tv 2022 $58,853 Parcel Number: 75-010-030-006-00 Year Tv 2022 $81,819 IT IS SO ORDERED. IT IS FURTHER ORDERED that the officer charged with maintaining the assessment rolls for the tax year at issue shall correct or cause the assessment rolls to be corrected to reflect the property's taxable values as finally provided in this Final Opinion and Judgment within 20 days of the entry of the Final Opinion and Judgment, subject to the processes of equalization? 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.
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MTT Docket No. 23-003622 Page 3 of 4 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 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 the last pending claim and closes this case. 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
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MTT Docket No. 23-003622 Page 4 of 4 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
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STATE OF MICHIGAN GRETCHEN WHITMER DEPARTMENT OF LICENSING AND REGULATORY AFFAIRS MARLON I. BROWN, DPA GOVERNOR LANSING DIRECTOR Mark A Stephenson, MICHIGAN TAX TRIBUNAL Petitioner, SMALL CLAIMS DIVISION MTT Docket No. 23-003812 \' Case Type: Uncapping Park Township, Presiding Judge Respondent. Joshua M. Wease FINAL OPINION AND JUDGMENT Location of Hearing: Telephonic Hearing Held on: February 11, 2025 Appearances on Behalf of Petitioner: ~~ Mark Stephenson and Sara Fazio (attorney) Appearances on Behalf of Respondent: Dale Hutson SUMMARY OF JUDGMENT The subject property's taxable value (TV) was not properly adjusted under MCL 211.27a. The subject property's TV for the tax year at issue shall be as follows: Parcel Number: 75-013-025-015-00 Year Tv 2022 $6,997 2023 $7,346 2024 $7,713 PROCEDURAL HISTORY On September 12, 2023, Petitioner received notice that the subject property’s TV was uncapped for tax year 2022 under MCL 211.27a. Petitioner filed a petition for the subject and two additional parcels with the Tribunal on October 14, 2023, which was
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MTT Docket No. 23-003812 Page 2 of 10 The amount of TV in dispute, as set forth in the pleadings, for all tax years at issue is within the jurisdictional limits of the Smali Claims Division." Further, the property's TV for subsequent tax years is included in this proceeding.? ISSUES AND APPLICABLE LAW The issue in this matter is whether Petitioner has proven by a preponderance of the evidence that the subject property’s TV was improperly uncapped under MCL 211.27a. Under the General Property Tax Act, property taxes are based on the property's TV for the tax year(s) at issue. MCL 211.27a provides that a property's TV is the lesser of the property's state equalized value (SEV) or capped TV, and a property's capped TV is, absent a transfer of ownership, determined mathematically by taking into consideration the prior tax year's TV, statutory losses, the lesser of the rate of inflation or 5%, and statutory additions, including omitted property (i.e., property not previously assessed). MCL 211.27a(8) states that: If all of the following conditions are satisfied, the local tax collecting unit shall revise the taxable value of qualified agricultural property taxable on the tax roll in the possession of that local tax collecting unit to the taxable value that qualified agricultural property would have had if there had been no transfer of ownership of that qualified agricultural property since December 31, 1999 and there had been no adjustment of that qualified agricultural property's taxable value under subsection (3) since December 31, 1999: (a) The qualified agricultural property was qualified agricultural property for taxes levied in 1999 and each year after 1999. (b) The owner of the qualified agricultural property files an affidavit with the assessor of the local tax collecting unit under subsection (7)(0). MCL 211.27a(7)(0) states that: [A] transfer of qualified agricultural property, if the person to whom the qualified agricultural property is transferred files an affidavit with the assessor of the local tax collecting unit in which the qualified agricultural property is located and with the register of deeds for the county in which the qualified agricultural property is located attesting that the qualified
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MTT Docket No. 23-003812 Page 3 of 10 prospective buyer of that qualified agricultural property that the qualified agricultural property is subject to the recapture tax provided in the agricultural property recapture act, 2000 PA 261, MCL 211.1001 to 211.1007, if the qualified agricultural property is converted by a change in use, as that term is defined in section 2 of the agricultural property recapture act, 2000 PA 261, MCL 211.1002... .. MCL 211.27a(8) and (9) states that: (8) If all of the following conditions are satisfied, the local tax collecting unit shall revise the taxable value of qualified agricultural property taxable on the tax roll in the possession of that local tax collecting unit to the taxable value that qualified agricultural property would have had if there had been no transfer of ownership of that qualified agricultural property since December 31, 1999 and there had been no adjustment of that qualified agricultural property's taxable value under subsection (3) since December 31, 1999: (a) The qualified agricultural property was qualified agricultural property for taxes levied in 1999 and each year after 1999. (b) The owner of the qualified agricultural property files an affidavit with the assessor of the local tax collecting unit under subsection (7)(0). (9) If the taxable value of qualified agricultural property is adjusted under subsection (8), the owner of that qualified agricultural property is not entitled to a refund for any property taxes collected under this act on that qualified agricultural property before the adjustment under subsection (8). Pursuant to R 792.10133, after hearing, the Tribunal must issue a final decision in writing. Additionally, “[a] written final decision shall include separate sections entitled “findings of fact” and “conclusions of law.” Findings of fact “shall include a concise statement of the underlying supporting facts” that are “based exclusively on the evidence.” Consequently, the Tribunal has not addressed every piece of evidence or every inference that might lead to a conflicting conclusion and has rejected evidence contrary to its findings. Furthermore, “[e]ach conclusion of law shall be supported by authority or reasoned opinion.” Accordingly, the Tribunal will outline the summary of evidence, findings of facts, and conclusions of law, before ultimately rendering judgment.
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MTT Docket No. 23-003812 Page 4 of 10 Petitioner's contentions of TV: Parcel Number: 75-013-025-015-00 Year Tv 2022 $6,997 2023 $7,346 2024 $7,713 The exhibits offered by Petitioner may be viewed on lines 3 and 16 of the docket maintained in this case.® No exhibits were excluded from evidence. Based on the pleadings, admitted exhibits, and sworn testimony, Petitioner contends that the uncapping was improper. Petitioner points to another case between them and Mendon Township, Docket No. 23-003622, which has the exact same facts and issues as this case. The Tribunal found for Mr. Stephenson in that case. Petitioner contends that Respondent retroactively uncapped the subject property’s TV for the 2022 tax year when it incorrectly determined there was a transfer of ownership on August 29, 2021. Ms. Fazio testified that her client, Petitioner, received a distribution of real property from his mother's Trust at the end of 2021. There was an issue with the deed that was corrected and filed in 2023. The issue is whether Petitioner's mother’s death, on August 29, 2021, was the catalyst for the uncapping of the TV, and thus the filing of the qualified agricultural affidavit, or whether it should not have happened until the property was distributed to Petitioner. Petitioner claims that at the time of the mother’s death, Petitioner had no authority to file the qualified agricultural affidavit because the property had yet to be transferred to him. The property remained in the Trust during the four month creditor period and the beneficiaries made a proposal for distribution of the Trust due to a discrepancy in the Trust. When Petitioner's sister, Cheryl, signed off on the proposal for distribution in November 2022, that is when the distributions could be made. Petitioner's deed needed to be corrected, and the deed and qualified agricultural affidavit were filed in January 2023. The deeds were executed in December 2022, recorded on February 21, 2023, and Petitioner filed the qualified agricultural affidavit. In September 2023, Petitioner received the notices of uncapping for 2023 and was required to pay outstanding taxes. Petitioner argues that transfers under MCL 211.27a(7)(o) do not include transfers of qualified agricultural property if the person files the affidavit with the township and register of deeds, attesting qualified agricultural property will remain qualified agricultural property. Additionally, the transfer is also not a transfer of ownership because it is a transfer between certain family members. Further, Ms. Fazio argues this is form over substance; MCL 211.27a(7)(0)
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MTT Docket No. 23-003812 Page 5 of 10 B. Respondent's Evidence Parcel Number: 75-013-025-015-00 Year Tv 2022 $65,200 2023 $68,460 2024 $71,883 The exhibits offered by Respondent may be viewed on lines 6 to 9 of the docket maintained in this case.” No exhibits were excluded from evidence. Based on the pleadings, admitted exhibits, and sworn testimony, Respondent contends that the uncapping event took place in 2021 and therefore the property was uncapped for 2022. Mr. Hutson claims that the property transfer affidavits (PTA) were required to be filed within 45 days of the transfer of ownership, but none were filed with Respondent. He believes a transfer from a trust is a transfer of ownership, and he does not see that Petitioner has provided a copy of the Trust noting that Petitioner was a beneficiary other than a contingent beneficiary. Respondent found out about the transfer of ownership when the deed and qualified agricultural affidavit were filed on February 21, 2023. Because the qualified agricultural affidavits were not filed before the 2022 tax bills were due (February 15, 2023), the TVs for 2022 were uncapped. Though there is no timeframe for the filing of the qualified agricultural affidavit, it does not affect the taxes due. Mr. Hutson testified that the uncapping exception for a distribution of trust property to a family member, does not apply, because the statute requires the property to be classified as residential and the subject properties are classified as agricultural. There is no dispute that the properties are qualified agricultural exemption (QAE) properties, the only issue is timing regarding what can be adjusted and when. The parcel has a QAE of 100% in 2022. FINDINGS OF FACT The following facts were proven by a preponderance of the evidence: 1. The subject property is located at M-60, Park Township, in Saint Joseph County. 2. The subject property is classified as agricultural real and has QAE of 100% for the 2022 tax year. 3. Respondent uncapped the subject property’s TV because a qualified agricultural affidavit was not filed before the 2022 taxes were due (February 15, 2023). Petitioner did not file a PTA with Respondent, as required by MCL 211.27a(10). p
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MTT Docket No. 23-003812 Page 6 of 10 b. The Trust held the subject property for Jean Stephenson’s benefit with her children, Mark, Ronald, and Cheryl, as contingent beneficiaries. ¢. Jean Stephenson died August 29, 2021. d. A deed from the Trust fo Petitioner was executed in December 2022. e. A corrected deed from the Trust to Petitioner was recorded on February 21, 2023. f. The deed and qualified agricultural affidavits were recorded on February 21, 2023. CONCLUSIONS OF LAW TV is determined pursuant to MCL 211.27a. Except for additions and losses, annual increases are limited to 5% or the rate of inflation, whichever is less.® In the year following a transfer of ownership, however, TV is set equal to the SEV (i.e., “uncapped”).? A “transfer of ownership” is defined by MCL 211.27a(6) as “the conveyance of title to or a present interest in property, including the beneficial use of the property, the value of which is substantially equal to the value of the fee interest,” and includes a conveyance by deed! and a change in the beneficiaries of a trust. Respondent uncapped the subject property's TV for the 2022 tax year, following the recording of a deed involving the subject property and the filing of a qualified agricultural affidavit on February 21, 2023. Respondent testified that it was the filing of these documents that alerted them to the transfer of property, namely the Jean Esther Stephenson Revocable Trust, the death of Jean Esther Stephenson in 2021, and the subsequent transfer of the subject property to Petitioner, a Trust beneficiary. Petitioner asserts that the subject property’s TV should not have been uncapped because a qualified agricultural affidavit was filed with Respondent. The Tribunal must determine whether a transfer of ownership for purposes of uncapping occurred. If a transfer occurred, the Tribunal must determine whether any sections of MCL 211.27a(7) apply that specify certain situations that are not transfers of ownership for uncapping purposes. In this case, the subject property was held in the Jean Esther Stephenson Revocable Trust for the benefit of Jean Esther Stephenson, Petitioner's mother. Petitioner and his siblings were contingent beneficiaries. Petitioner's mother passed away on August 29, 2021. Petitioner argues the transfer of ownership would not have occurred at the time of her death because Michigan's trust laws require a statutory grace period for creditors to make claims against the estate and the Trust held the title and control of the properties until they were deeded to Petitioner. However, the Court of
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MTT Docket No. 23-003812 Page 7 of 10 Twp of Long Lake.'® That court noted that MCL 211.27(a)(6) states that a transfer of ownership includes the conveyance of “the beneficial use of the property.”'4 The Fifarek court held that the death of the last trust settlor resulted in a change in beneficiaries.’ The Tribunal finds Fifarek instructive and persuasive. Applying Fifarek to the facts of this case, Jean Esther Stephenson's death resulted in a change in beneficiaries ~ and a transfer of ownership — because Petitioner received the beneficial use of the subject properties. 6 Further, MCL 211.27a(6)(e) states that: A change in the sole present beneficiary or beneficiaries of a trust, except under any of the following conditions: (i) A change that adds or substitutes the spouse of the sole present beneficiary. (ii) Beginning December 31, 2014, for residential real property, a change that adds or substitutes the settlor's or the settlor's spouse's mother, father, brother, sister, son, daughter, adopted son, adopted daughter, grandson, or granddaughter and the residential real properly is not used for any commercial purpose following the conveyance. Upon request by the department of treasury or the assessor, the sole present beneficiary or beneficiaries shall furnish proof within 30 days that the sole present beneficiary or beneficiaries meet the requirements of this subparagraph. If a present beneficiary fails to comply with a request by the department of treasury or assessor under this subparagraph, that present beneficiary is subject to a fine of $200.00. Here, the change did not add or substitute the spouse of the sole present beneficiary, under MCL 211.27a(6)(e)(i) and the property is classified as agricultural real property; therefore, the exception contained in MCL 211.27a(6)(e)(ii) does not apply. There is no dispute that the subject property was qualified agricultural property, under MCL 211.7dd, during 2022. A transfer of ownership does not include transfers of qualified agricultural property “if the person to whom the qualified agricultural property is transferred files an affidavit with the assessor of the local tax collecting unit in which the qualified agricultural property is located and with the register of deeds for the county in which the qualified agricultural property is located attesting that the qualified agricultural property will remain qualified agricultural property.”? The statute does not specify the time in which the qualified agricultural affidavit is required to be filed with either the 3 Fifarek House Trust v Twp of Long Lake, unpublished per curiam opinion of the Court of Appeals, issued March 7, 2017 (Docket No. 330489) appeal denied 501 Mich 909; 802 NW2d 626 (2017).
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MTT Docket No. 23-003812 Page 8 of 10 assessor or the county. However, the Court of Appeals in Lyle Schmidt Farms LLC v Mendon Twp,'8 recognized that “MCL 211.27a(8) provides for ‘recapping’ the TV of qualified agricultural property when an affidavit under MCL 211.27a(7)(0) is not filed within the year of the transfer of title of the qualified agricultural property, but is filed later . ..."® In this case, the qualified agricultural affidavit was filed more than one year after the transfer of ownership (the death of Jean Esther Stephenson). Therefore, the Tribunal must determine whether Petitioner's qualified agricultural affidavit satisfies MCL 211.27a(8). MCL 211.27a(8) states that: If all of the following conditions are satisfied, the local tax collecting unit shall revise the [TV] of qualified agricultural property taxable on the tax roll in the possession of that local tax collecting unit to the taxable value that qualified agricultural property would have had if there had been no transfer of ownership of that qualified agricultural property since December 31, 1999 and there had been no adjustment of that qualified agricultural property's [TV] under subsection (3) since December 31, 1999: (a) The qualified agricultural property was qualified agricultural property for taxes levied in 1999 and each year after 1999. (b) The owner of the qualified agricultural property files an affidavit with the assessor of the local tax collecting unit under subsection (7)(0).2° Here, all of the conditions are met, and the subject property's TV should be recapped for 2022. However, MCL 211.27a(9) provides that "[i]f the [TV] of qualified agricultural property is adjusted under subsection (8), the owner of that qualified agricultural property is not entitled to a refund for any property taxes collected under this act on that qualified agricultural property before the adjustment under subsection (8).” As such, the 2022 TV shall be recapped; however, Petitioner is not entitled to a refund of any taxes collected as a result of the uncapping. The following 2023 and 2024 tax years are increased by the respective inflation rate multipliers, which was 1.05 for each year. JUDGMENT IT IS ORDERED that the property's TV for the tax year(s) at issue shall be as set forth in the Summary of Judgment section of this Final Opinion and Judgment. IT IS FURTHER ORDERED that the officer charged with maintaining the assessment rolls for the tax year(s) at issue shall correct or cause the assessment rolls to be corrected to reflect the property’s taxable values within 20 days of entry of this Final Opinion and Judgment, subject to the processes of equalization?! To the extent that
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MTT Docket No. 23-003812 Page 9 of 10 published, the assessment rolls shall be corrected once the final level is published or becomes known. IT IS FURTHER ORDERED that Petitioner is NOT entitled to a refund of the property's ad valorem taxes paid for the tax year(s) at issue. This Final Opinion and Judgment resolves all pending claims in this matter and closes this case. 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 ya H. Lbroe— Entered: May 21, 2025 4
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MTT Docket No. 23-003812 Page 10 of 10 By: Tribunal Clerk
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Be - | 9589 0710 5270 2k27 Laan yg | | I HAAS [ONT ATTORNEYS & COUNSELORS 21 West Chicago Street, Coldwater, Michigan 49036 | TO Dept. of Licensing & Regulatory Michigan Tax Tribunal PO Box 30232 Lansing, MI 48909