The Michigan Tax Tribunal has started to send out notices to property owners who had filed classification appeals. There are approximately 10,000 of such appeals. It is very important for property owners to respoind in a timely manner to the notices.
What has happened is tied to the enactment of the personal property tax credit first for SBT and now in the MBT at 35%. The amount of the credit is significant (35%) but is applicable for personal property located on a parcel classified as industrial.
The problem is inaccuracies in the classification of property. Because the credit is not available to property classified as "commercial", many taxpayers (10,000) filed appeals with their local assessor and the local Board of Review and finally the State Tax Commission. Michigan law invests with the State Tax Commission the authority to rule on classification appeals and provides that their determination is final and the property owners cannot appeal to the Michigan Tax Tribunal. However, the Department of treasury can appeal a determination of the State Commission.
Because of the enormous number of appeals and the significance of the classification to the property owner, the State Tax Commission sent the appeals to the Michigan Tax Tribunal earlier this year. The Tax Tribunal has recently started to process the appeals.