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Contact Information:
Edward S. Kisscorni, CPA
290 Suncrest Court, SW
Grandville, MI 49418

Office: 616/233-0667
Cell: 616/443-6730
Fax: 616/233-0667




Wednesday, September 21 2011

Circuit Court Decision Consistent With Supreme Court Ruling

In Hino Motors Manufacturing USA v. Naftaly, Michigan Court of Appeals, No. 292527, September 13, 2011, the Court of Appeals ruled consistent with the Michigan Supreme Court's decision in Midland Cogeneration Venture Limited Partnership v. Naftaly, 489 Mich. 83 (2011), where the Michigan Court of Appeals held that a circuit court had subject matter jurisdiction over a property tax appeal from a State Tax Commission (STC) property classification decision because it constituted a final decision that was quasi-judicial and affected private rights and, therefore, it fell within the ambit of Art. 6, 28 of the Michigan Constitution, which guaranteed judicial review.  In addition, because the STC's reclassification decision was a discretionary act, the circuit court abused its discretion by issuing a writ of mandamus directing members of the STC to reclassify the taxpayer's property.

The taxpayer argued that because there was only one correct outcome in making the classification in this case, the STC's reclassification decision was ministerial and not discretionary.  However, a ministerial versus discretionary distinction could not rest on the fact that there was only one correct outcome.  The fact that a person, board, or entity was empowered to make a decision was enough to categorize the act as discretionary, and the applicable statute clearly empowered the STC to decide property classification disputes. Therefore, assuming that the STC was in fact presented with a situation in which there was only one correct outcome, its act in deciding the matter was nevertheless discretionary, thereby removing it from the realm of a writ of mandamus.




Posted by: Ed Kisscorni AT 12:35 pm   |  Permalink   |  0 Comments  |  Email
Tuesday, September 20 2011

Tax Tribunal Must Make An Independent Determination of True Cash Value

In U-Wash, Inc. v. City of Allen Park, Michigan Court of Appeals, No. 295798, August 30, 2011, the Court of Appeals ruled the State Tax Commission had jurisdiction to entertain a city's proposed request to correct the taxable values of a company's car-wash equipment for local Michigan property tax purposes because the property was incorrectly reported.  However, the Tax Tribunal did not fulfill its duty to make an independent determination of true cash value.  

By all appearances, the tribunal's judge merely adopted the city's proposed true cash value, as corrected by the State Tax Commission, as her own findings without identifying substantial evidence to support them.  Therefore, the record was insufficient to indicate that the true cash values for the tax years at issue were the amounts assessed by the city's assessor. The court remanded the case back to the Tax Tribunal for a redetermination of the true cash values.

Posted by: Ed Kisscorni AT 12:13 pm   |  Permalink   |  0 Comments  |  Email


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