Tax Tribunal Has No Jurisdiction When Appeal Period Had Expired
In JH Campbell, Inc. v. Township of Dexter, Michigan Court of Appeals, No. 295455, March 8, 2011, the Court of Appeals ruled that the Michigan Tax Tribunal did not obtain jurisdiction to review the taxable values of a taxpayer's real property for the 2004 property tax year when the taxpayer challenged the 2007 and 2008 values. The taxpayer's appeal was based on the underlying premise that the additions to the 2004 taxable values of its real property were unconstitutional and, therefore, its 2007 and 2008 taxable values should have been lowered as a result of the error. The applicable provision on which improvements were added to taxable value was declared unconstitutional in Toll Northville, Ltd v. Northville, 480 Mich. 6; 743 N.W. 2d 902 (2008).
The Michigan Court of Appeals held that the Tax Tribunal did not have jurisdiction to make changes to the 2007 and 2008 taxable values when those changes were initially reflected in 2004 and the time for filing a timely appeal with the tribunal based on the 2004 taxable values had long passed. Moreover, the taxpayer did not cite any authority that supported the proposition that the Tax Tribunal had the authority to examine taxable values when a provision that affected taxable values was subsequently declared unconstitutional. Consequently, the court concluded that the taxpayer did not demonstrate that the Tax Tribunal made an error of law or adopted a wrong principle with respect to the tax years on appeal in this case. The taxpayer also failed to cite any authority to support its proposition that because the provision adding improvements to taxable value was subsequently determined to be unconstitutional, the access road and other public improvements to its property could be removed from the taxable values as a loss.