Detroit Diesel Petition As Amended.pdf

Detroit Diesel Corporation Petitioner Vs. Township Of Redford Respondent · 26-002925-TT

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STATE OF MICHIGAN

 DEPARTMENT OF LICENSING & REGULATORY AFFAIRS

 MICHIGAN TAX TRIBUNAL



Detroit Diesel Corporation,



 Petitioner,

v. MOAHR Docket No. _______________26-002925

 [Parcel No. 79-999-00-2027-001]



Redford Township,



 Respondent.



_________________________/

 AMENDED

 PETITION



 Detroit Diesel Corporation (“Petitioner”), through its attorneys, HONIGMAN



LLP, says:



 1. Petitioner's principal office address is 13400 Outer Drive West, Detroit,



MI. Petitioner is a party in interest with respect to property taxes on tax parcel



no(s). 79-999-00-2027-001 ("Petitioner's Property") located in Redford Township.



 2. Respondent, Redford Township, assesses and collects property taxes



in Redford Township.



 3. Petitioner’s property is subject to a State Essential Services Assessment



Exemption pursuant to Resolution 2024-174 of the Michigan Strategic Fund. A



copy of that Resolution is attached hereto as Exhibit 1.



76341580.1

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4. On February 20, 2026, Petitioner timely filed a Form 5278 with



Respondent. A copy of the timely filed Form 5278 is attached hereto as Exhibit 2.



 5. Respondent took no action regarding the Form 5278 because



Respondent’s assessor assumed that the assets listed on the Form 5278 would fall



under Petitioner’s existing personal property account for this location and



Petitioner’s property was already exempt from local ad valorem taxes under MCL



211.9m. Respondent did not realize the error until Petitioner went to file with ESA



in the spring of 2026.



 6. On July 2, 2026, Respondent filed an action with the State Tax



Commission pursuant to MCL 211.154 (the “154 Action”). A copy of the 154 Action



is attached hereto as Exhibit 3.



 7. Petitioner’s receipt of the 154 Action was the first notice that



Petitioner that Respondent’s assessor had effectively denied Petitioner’s Form



5278 and Petitioner timely files this Petition with the Tribunal within 35 days of that



notice pursuant to MCL 211.9m(3).



 8. In the 154 Action, Respondent sought to correct its error and have



the State Tax Commission acknowledge parcel number 79-999-00-2027-001 for



Petitioner’s property and accept Petitioner’s Form 5278. See Exhibit 3.



 9. Petitioner’s property is eligible manufacturing personal property as



defined by MCL 211.9m(8) and is “qualified new personal property” as defined



under MCL 211.9m or “qualified previously existing personal property” as defined



under MCL 211.9n and therefore exempt from local property taxes.

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10. The acquisition costs of the eligible manufacturing personal property



that is exempt under MCL 211.9m or MCL 211.9n are $83,435,187 as reflected on



the Form 5278 attached hereto as Exhibit 2.



 11. Petitioner’s property is also exempt from State Essential Services



Assessment pursuant to Resolution 2024-174. See Exhibit 1 hereto.



 12. Respondent’s failure to process Petitioner’s timely filed Form 5278 was



an inadvertent error and that form should have been processed, as is confirmed



by the Assessor’s 154 Action, Exhibit 3 hereto.



 WHEREFORE, Petitioner requests that the Tax Tribunal enter an Order



directing and finding that: (1) Petitioner’s property, Parcel No. 79-999-00-2027-001,



is eligible manufacturing personal property as defined by MCL 211.9m(8) and is



“qualified new personal property” as defined under MCL 211.9m or “qualified



previously existing personal property” as defined under MCL 211.9n and therefore



exempt from local property taxes; (2) the acquisition costs of the eligible



manufacturing personal property that is exempt under MCL 211.9m or MCL 211.9n



are $83,435,187; (3) Petitioner’s property is exempt from State Essential Services



Assessment pursuant to Resolution 2024-174; (4) Respondent’s assessor must



forward a copy of Tribunal’s Order and Form 5278 to the Department of Treasury



within 15 days of the date of the Order and that the Department of Treasury must



generate or amend the taxpayer’s ESA statement within 15 days of receipt of the



Form 5278.

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Respectfully submitted,



 HONIGMAN LLP

 Attorneys for Petitioner



 By: _______________________________________/s/ Daniel L. Stanley

 Daniel L. Stanley (P57052)

 222 N. Washington Square

 Suite 400

 Lansing, MI 48933

 (517) 377-0714

 dstanley@honigman.com

Dated: August 3, 2026

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EXHIBIT 1

Page 6

MICHIGAN STRATEGIC FUND



 RESOLUTION 2024-174



 APPROVAL OF A STATE ESSENTIAL SERVICES ASSESSMENT EXEMPTION TO

 DETROIT DIESEL CORPORATION



 WHEREAS, the Michigan Legislature passed legislation, 2014 PA 80, to revise the personal

property tax system so us to allow individuals, small businesses, and large businesses to thrive and create

jobs in the State of Michigan, but which needed to be approved by the qualified electors of the Slate or

Michigan;



 WHEREAS, on August 5, 2014, the qualified electors of the State of Michigan approved the

legislation to revise the personal property tax system. The approval enacted 2014 PA 92 and 2014 PA 93,

the Stale Essential Services Assessment Act (the "SESA") and the Alternative State Essential Services

Assessment Act (the "Alternative SESA");



 WHEREAS, the SESA and the Alternative SESA authorized the creation and operation of the

SESA Exemption and the Alternative SESA Exemption Program by the Michigan Strategic Fund (the

"MSF") pursuant to MCL 211.1059;



 WHEREAS, on October 28, 2014, by Resolution 2014-176, the MSF Board approved (i) the SESA

Exemption (the "SESA Program") and Alternative SESA Exemption Program (the "Alt SESA Program")

("collectively, the "SESA Exemption Program") and (ii) program guidelines for the SESA Exemption

Program (the "Program Guidelines");



 WHEREAS, on October 28, 2014, by Resolution 2014-177, the MSF Board approved the MSF

Fund Manager or the MSF President to negotiate the terms and conditions and execute all final documents

necessary to effectuate awards and decisions approved under the SESA Exemption Program;



 WHEREAS, the Michigan Economic Development Corporation (the "MEDC") provides

administrative services to the MSF for the SESA Exemption Program;



 WHEREAS, Detroit Diesel Corporation (the "Company") is an Eligible Claimant, as defined in

MCL 211.1053(d), which will claim an exemption for Eligible Personal Property, as defined in MCL

211.I053(e);



 WHEREAS, the Program Guidelines require that projects be located in Eligible Distressed Areas,

as defined in the Program Guidelines, in order to be eligible for the SESA Program (the "EDA

Requirement");



 WHEREAS, the Program Guidelines require that qualifying investments be made after MSF

approval and within three (3) years of commencement of the project in order to be eligible for the SESA

Exemption Program (the "Commencement Requirement");



 WHEREAS, the MEDC is requesting a waiver to the EDA Requirement and the Commencement

Requirement (the "Waiver Request");



 WHEREAS, the Company has requested that the MSF Board approve a 100% exemption under

the SESA Program for up to fifteen years estimated to be worth $3,294,130 for up to $161,800,000 in



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qualified investment in Eligible Personal Property, as defined in the Program Guidelines, in the Township

of Redford, Wayne County (the "SESA Exemption Recommendation"); and



 WHEREAS, the MEDC recommends the MSP Board approve the SESA Exemption

Recommendation, the Waiver Request, and require a one-time administrative fee in the amount of S10,000

payable to the MSF upon completion of the first performance milestone (collectively, the "Request");



 NOW, THEREFORE, BE IT RESOLVED, that the MSF Board approves the Request.



 Ayes: Dr. Britany AfTolter-Caine, Susan Corbin, Wesley Eklund, Rachael Eubanks,

 Dimitrius Huteherson, Michael B. Kapp (on behalf of Director Wieferich,

 designation attached), Quentin L. Messer, Jr., Dan Meyering, Leon

 Richardson, Charles P. Rothstein, Susan Tellier, Cindy Warner



 Nays: None



 Recused: None



Lansing, Michigan

December 10, 2024

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EXHIBIT 2

Page 9

Michigan Department of Treasury Parcel Number Assessor's Copy

5278 (Rev. 08.25) MSF RESOLUTION 2024-174 2026

Eligible Manufacturing Personal Property Tax Exemption Cla"rn, and Report of Fair Market

Value of Qualified New and Previously Existing Personal Property (Combined Document)

Issued under authority of PA 206 of 1893 and PA 92 of 2014, as amended. Filing is mandatory In order to claim the Eligible Manufacturing Personal Property tax exemption.

DO NOT COMPLETE THIS COMBINED DOCUMENT UNLESS THE PERSONAL PROPERTY MEETS THE DEFINITION OF ELIGIBLE MANUFACTURING PERSONAL

PROPERTY. Eligible Manufacturing Personal Property (EMPP) means all personal properly located on occupied real property il that personal property is predeminanUy used

In industrial processing or direct Integrated support. For personal property that is construction in progress and part of a new facility not In operation, EMPP means all personal

property that is part of that new facility if that personal property will be predominantly used in industrial processing when the facility becomes operational.

Qualified new and qualified previously existing personal property (as defined by MCL 211.9m and 211.9n) for which an exemption has been properly claimed is exempt from local

property tax. To claim this exemption, a fully completed Form 6278 must be delivered to the assessor of the local unit of government In which the qualified personal properly

Is located, postmarked no later than February 20, 2026. Failure to complete the required certification, personal property statement, and report of fair market value on

Form 5278 may result In tho claim being dented. Claiming this exemption when not entitled to it can result in significant penalties.

Important Note: Leasing companies are not eligible to receive the exemption under MCL 211,9m and MCL 211.9n and may not use this Combined Document. A lessee and

lessor may elect that the lessee report leased personal properly on this Combined Document by completing the Election of lessee Report of Eligible Manufacturing Personal

Property (Form 5467) and attaching it to this form. Absent such an election, the personal property must be reported by the lessor on the personal property statement (Form 632).

PART I: ELIGIBLE MANUFACTURING PERSONAL PROPERTY'TAX.EXEMPTION CLAIM

To claim this exemption you must fully complete the entire Combined Document, including the required certification, and report of

fair market value. A separate Form 6278 must be flied for each,parcel•number.

Taxpayer Information

Federal Employer Identification Number (FEIN) Taxpayer Name Associated with this FEIN

Detroit Diesel Corporation

3 8 - 2 7 7 2 0 2 3 Primary Occupant Name, if other than Taxpayer Name

Assumed names, if any, used by legal entity (attach list if necessary):

Contact Person Name Contact E-mail Address Contact Telephone Number

Stefania Nagey stefania.nagey@daimlertruck,com (313) 592-7642

Contact SL No. Contact Street Name or PO Box Contact City State ZIP Code Country

13400 Outer Drive West Detroit MI 48239

Printed Name of Parson in Charge of Records Telephone Number Address where records are retained

Stefanie Nagey (313) 592-7642 13400 Outer Drive, West / Detroit, MI 48239

Personal Property Location Information

Parcel Number of Personal Property claimed as Eligible Manufacturing Personal Properly

MSF RESOLUTION 2024-174

NOTE: If the property is located within a city, complete the City and County fields below, if located within a township but not within a village, complete the Township

and County fields. If located within a village, also complete the Township, Village and County fields.

City Township Village County

Redford Twp. Wayne

Street Address where personal property is located City State ZIP Code

13400 Outer Drive West Detroit MI 48239

List all real property parcel numbers where the personal property reported on this form is located (attach list as necessary)

79-999-00-3230-500

CERTIFICATION

1. I certify that I own, lease or otherwise occupy the real property on which the eligible manufacturing personal property is located, or I am the sole proprietor, partner, officer,

managing member or the duly authorized agent of the owner, lessee or occupant (agent must attach letter of authority).

2. I certify that the personal property for which an exemption is claimed pursuant to this Combined Document is Eligible Manufacturing Personal Property as defined by MCI

211.9m and the personal property for which an exemption is being claimed meets the more than 50% requirement of being predominately used in Industrial processing or

direct integrated support and therefore qualifies or will qualify for exemption under MCL 211.9m or MCL 211.9n.

3. I certify my understanding that according to Public Act 92 of 2014, as amended, I am required to provide access to the books and records, for audit purposes, relating to

the location and description; the date of purchase, lease, or acquisition; and the purchase price, lease amount, or value of ell personal property owned by, leased by, or in

the possession of that person or a related entity if requested by the assessor of the township or city, county equalization department, or Michigan Department of Treasury

for the year in which the statement is filed and the immediately preceding 3 years.

4, I certify my understanding that to qualify for the EMPP exemption on this parcel, I must electronically certify an ESA statement and make electronic payment of any ESA

liability by the statutory deadline of August 15, 2026, and that failure to pay ESA liability and applicable late payment penalty via ACH, EFT, or c-file by the statutory

deadline of April 15, 2027, will result in rescission of this exemption. I understand that Public Act 92 of 2014 prohibits payment of ESA liability by check.

5. I hereby certi that all the information contained within and attached to this Combined Document is true and accurate to the best of my knowledge, information and belief.

Signati Date / / Assessor Use Only, -,Dote of Receipt . - , . 6 . ,, ,.,, .. ,• 11 (18 A) oi ao a 6) Printed Nam MA' /

Stefanie Nagey ' I ; ' LI

Tele

Tax Manager

0313 Continue on Page 2

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5278. Pane 2 Assessor's Copy

PART 2: Report of Fair Market Value (Acquisition Cost) of Qualified.New and Previously Existing Personal Property

Qualified new personal property and qualified previously existing personal property located on occuplectreal property is exempt from local ad valorem

taxation andls Instead subject to the Essential Services Assessment (ESA), payable to the Michigan Department of Treasury. See Instructions, page 2.

Check if there is zero acquisition cost reported In the total in Part 2, Section B, below. Unless this box Is checked, failure to report

acquisition cost In Section B may result In rescission of the EMPP exemption for this parcel.

Check if the personal property reported on this form includes leased personal property for which the election of lessee report is being filed.

The taxpayer must complete the Election of Lessee Report of Eligible Manufacturing Personal Property (Form 5467) and Include it with this

copy of Form 5278 when filed with the local tax collecting unit.

Section A: Summary and Reporting Instructions for Essential Services Assessment

Provide a yes or no answer to all questions, The Acquisition Cost (MCL 211.1053(a)(i)j for all personal property must be reported In Section B below.

1. Is the personal property reported on this Combined Document subject to an Industrial Facilities Exemption Certificate

(RA. 198 of 1974) that went into effect prior to December 31, 2012? If yes, attach a copy of the IFT certificate Yes X I No

Certificate Begin Dale Certificate End Date IFT Certificate _

Number:

NOTE: The IFT Certificate Number is typically seven digits, al hough some may also have an additional character that is entered in the dotted

field. Otherwise, leave the dotted box blank.

2. Is the personal property reported on this Combined Document subject to a P.A. 328 (MCL 211.91) New Personal

Property exemption?

If yes, attach a copy of the P.A. 328 certificate Yes X No

Certificate Begin Dale Certificate End Date P.A. 328 — Certificate Number.:

3. Is the personal property reported on his Combined Document exempt from the Essential Services Assessment, and

either subject to or exempt from an Alternative Essential Services Assessment, as a result of a resolution adopted

under provisions of MCL 211.1059 by the Michigan Strategic Fund (MSF)? If yes, attach a copy of the MSF resolution X Yes j No

Certificate Begin Date Certificate End Date MSF Certificate

Number: 2 0 2 4 — 1 7 4 12/10/2024 12/30/2039

Yes X No 4. Is the personal property reported on this Combined Document subject to a Renaissance Zone Exemption? n

Renaissance Zone Name Expiration Date

Section B: Report of Acquisition Cost

Report of Qualified New Personal Property (MCL 211.9m) and Qualified Previously Existing Personal Property (MCL 211.9n). For purposes of reporting in this section,

'Acquisition cost' means 100% of the fair market value of personal property at the time of acquisition by the first owner, including the cost of freight, sales tax, and Installation.

and other capitalized costs, except capitalized interest, prior to any reduction of Fair Market Value provided for by statute. Report Construction in Progress (CIP) as defined

in MCI. 211.9m(6)(c) in this part of the Document. For Construction in Progress, Acquisition Cost includes the cost of freight, sales tax, and installation. (See instructions for

more information on Construction In Progress.)

Year Placed in Service Acquisition Cost IMCL 211.1053(a)(I)I Year Placed in Service Acquisition Cost IMCL 211.1053(a)(01

Construction in Progress 56,053,633 2020

2025 22,523,295 2019

2024 4,858,259 2018

2023 2017

2022 2016

2021 2015 and Prior

TOTAL ACQUISITION COST FOR ALL YEARS LISTED HERE IN SECTION B 83,435,187

0313

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EXHIBIT 3

Page 12

Michigan Department of Treasury

627 (Rev. 09-25), Page 1 of 2 L-4154

Assessor or Equalization Director's Notice of Property OFFICE USE ONLY

Incorrectly Reported or Omitted From Assessment Roll File Number 154-

This form is issued under authority of Section 211.154, MCL. Filing is mandatory.

PART 1: ASSESSOR/EQUALIZATION DIRECTOR SECTION

 ASSESSOR/EQUALIZATION DIRECTOR INFORMATION (Type or Print Legibly)

 Name of Assessor or Equalization Director Telephone Number E-mail Address

 Jessica V Gracer (313) 387-2732 jgracer@wcaassessing.com

 Mailing Address (Number, Street, PO Box) City State ZIP Code

 15145 Beech Daly Redford Township MI 48239

 PROPERTY AND ASSESSMENT ROLL INFORMATION

 Name(s) of Property Owner(s)

 Detroit Diesel Corporation

 Owner's Mailing Address (Number, Street, PO Sox) City State ZIP Code

 13400 W Outer Drive Redford Township MI 48239

 County Where Property is Located Name of Local Assessing Unit Village Name (if applicable)

 Wayne Redford Township

 Parcel Code Name of School District Where Property is Located

 79-999-00-2027-001 South Redford

 Property Classification

 Real Residential 1 Real Agricultural 13(1 Personal Industrial pi Personal Residential

 Real Industrial Real Developmental _ Personal Commercial Personal Agricultural r7

 Real Commercial I Real Timber-Cutover Personal Utility Special Roll (PA 198, PA 255, PA 189)

 Property Description (if omitted from the roll, legal description must be provided)

 Personal Property Account



 REASON FOR THIS NOTICE

 The Assessor or Equalization Director must provide a detailed explanation for requesting this change. Attach an additional page if necessary.



 ASSESSED VALUE TAXABLE VALUE

 Year(s) for Which Notice Assessed Value Requested Taxable Value Requested

 was Given on Assessment Roll Assessed Value on Assessment Roll Taxable Value

 2026 0 0 0 0

 2025

 2024

 REAL AND PERSONAL PROPERTY INFORMATION (Question 1 Personal Property only)

 1. Did the owner of the property complete and deliver a Form 632 (L-4175), Personal Property Statement, or Form 5278, Eligible Manufacturing

 Personal Property Combined Document, for each year that this notice covers that was:

 X Timely Filed? (Accepted as filed and used in determining the assessment that was confirmed by the Board of Review?)

 Estimated/Not Filed? If estimated or not filed, indicate the year(s):

 2. Is this property assessed on the Industrial Facilities Tax Roll, the Commercial Facilities Tax Roll, the Technology Park Facilities Roll, the

 Neighborhood Enterprise Zone Roll, the Renaissance Zone or as an Act 189 of 1953 assessment?

 Yes X No If Yes, specify the roll:

 ASSESSOR/EQUALIZATION DIRECTOR CERTIFICATION

 I certify that the taxpayer's assessments for years open to correction which are not included on this form have been reviewed and it has been

 determined that the assessments were correct as rendered or, if the assessments were estimated, that the estimates were adequate in amount.

 Assessor or Equalization Director Signature. Date



 i Y

See page 2 for instructions for the assessor/equalization director.

The property owner/agent must complete and sign page 2, and submit the complete form to the assessor.

Page 13

627, Page 2 of 2

 79-999-00-2027-001 Parcel Code from Page 1



 INSTRUCTIONS FOR ASSESSOR/EQUALIZATION DIRECTOR



 NOTICE: THIS FORM WILL NOT BE PROCESSED IF THE FOLLOWING DOCUMENTATION IS NOT PROVIDED:

 Each form must include calculations showing how the proposed revision in assessed and taxable value was calculated.

 Personal Property: Include a copy of the original Form 632 (L-4175), or Form 5278, and a copy of the amended Form(s).

 Real Property: Include a copy of the record card showing that property was omitted from the record card, or that the property was

 included on the record card when it did not exist, or that an item on the record card was incorrect.

 For a complete list of items needed to process your application, review the "MCL 211.154 Checklist" online at

 www.michigan.gov/154petitions.



 The State Tax Commission's jurisdiction under MCL 211.154 is limited to correcting assessments for the current assessment year (the

 year of discovery and disclosure to the State Tax Commission) and two immediately preceding years. Although you must present a

 copy of this form to the property owner for concurrence or disagreement, you may also immediately submit a second copy of this form,

 without the owner's concurrence or disagreement, to the State Tax Commission. Your failure to do so by December 31 of the current

 calendar year may affect the Commission's jurisdiction to consider all of the assessment years that the Assessor or Equalization

 Director included on this form.

PART 2: PROPERTY OWNER SECTION

 OWNER'S CONCURRENCE OR DISAGREEMENT

 THIS SECTION SHALL BE COMPLETED BY THE PROPERTY OWNER AND THE SIGNED FORM AND ANY ATTACHMENTS

 RETURNED TO THE ASSESSOR.

 I AGREE with this request for corrected Assessed Value and/or Taxable Value.

 I DO NOT AGREE with this request for corrected Assessed Value and/or Taxable Value. (The owner who checks this box must

 submit an explanation below for not concurring with this request.)

 OWNER'S EXPLANATION FOR NON-CONCURRENCE (attach additional pages as necessary)



 OWNERSHIP OF PROPERTY

 Did the property that is indicated in this form change ownership during the time period starting with the earliest year for which a change

 is being requested, up to the present?

 Yes No If Yes, insert the date the ownership changed:

 PROPERTY OWNER CERTIFICATION

 I hereby certify that all the information contained within, and attached to, this application is true and accurate to the best of my

 knowledge, information and belief.

 Property Owner Signature Date



 Telephone Number E-mail Address



 www.michigan.gov/154petitions

 STC Date Stamp



State Tax Commission

Michigan Department of Treasury

PO Box 30471

Lansing MI 48909

Page 14

The 2026 5278 was timely filed by Detroit Diesel to the local Assessor 2/20/2026. The filing

was for specific assets located at 13400 W. Outer Drive that fell under an exemption under

MSF Resolution 2024-174 (see attached). As the Assessor, it was assumed that these

assets would fall under the existing personal property account for this location under

Detroit Diesel, and no personal property account was assigned to the 2026 assessment

roll. As a result, no assessment notice was generated, as the current account was already

exempt from local ad valorem taxes under MCL 211.9m. The error was not realized until the

taxpayer went to file with ESA in the spring of 2026. This situation is a first for both parties

involved.

At this time, we are respectfully requesting that the State Tax Commission acknowledge the

personal property account (79-999-00-2027-001) for the assets exempt under MSF

Resolution 2024-174, and accept the 5278 filing attached. This will allow ESA to properly

process and acknowledge the assets under the umbrella of this exemption.

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