Court of Appeals Supports the Tax Tribunal Acceptance of Assessed Valuation on the Tax Rolls In Determination of True Cash Value
In President Inn Properties LLC v. City of Grand Rapids, Michigan Court of Appeals, No. 294452, February 17, 2011, the Tax Tribunal did not abdicate its responsibility to independently determine the true cash value of two parcels of property on which a taxpayer operated a hotel when it adopted the properties' assessed valuation on the local Michigan property tax rolls. There was competent and substantial evidence in the record supporting the tribunal's determination. In this case, the taxpayer's expert and his appraisals concluded that the properties' true cash value was less than that on the assessment rolls. The city's expert and her appraisals concluded that the properties' true cash value was more than that on the assessment rolls. The Tax Tribunal, however, was under no obligation to accept the valuation figures or the approach to valuation advanced by either the taxpayer or the city.
Further, the tribunal did not commit an error of law or adopt a wrong principle by finding that the properties' assessed valuation on the tax roll was also the properties' true cash value. Although a property's assessed valuation on the tax rolls carries no presumption of validity, the tribunal may adopt the assessed valuation on the tax rolls as its independent finding of true cash value when competent and substantial evidence supports doing so.