Tax Tribunal Did Not Erroneously Modify True Cash Value of Property to Purchase Price
The Michigan Court of Appeals ruled in Oza v. Township of West Bloomfield, Michigan Court of Appeals, No. 296228, April 19, 2011, the Michigan Tax Tribunal did not commit an error of law by modifying the 2006 true cash value of taxpayers' residential property for local property tax purposes on the basis of its own evaluation of the credibility of the taxpayers' testimony to the administrative law judge without first conducting a rehearing to determine for itself if their testimony was credible.
The taxpayers' argument was premised on an inaccurate characterization of the tribunal's ruling because the ruling was not based on any credibility determination. Instead, the tribunal found that the actual purchase price for the property was a more reliable indication of the property's value and that the taxpayers' testimony alone was insufficient to show that they failed to act prudently and knowledgably in negotiating the purchase price.