Court of Appeals Distinguishes between Taxable Value and True Cash Value
In Chosid v. City of Ann Arbor, Michigan Court of Appeals, No. 292721, May 31, 2011, the Court of Appeals affirmed that the the Michigan Tax Tribunal correctly denied the taxpayers' motion to amend their petition challenging a city's true cash value assessment of their home for the 2008 property tax year because the tribunal lacked subject matter jurisdiction. The taxpayers claimed the Tax Tribunal had jurisdiction to hear their appeal because they first timely protested the taxable value assessment with the July Board of Review. The Michigan Court of Appeals noted, however, that a true cash value assessment and a taxable value assessment were two separate and unique assessments.
As the Tax Tribunal explained in its opinion, taxable value was determined through the use of a statutory mathematical calculation, whereas true cash value involved consideration of market prices. The taxpayers were required to timely protest both the taxable value assessment and the true cash value assessment to the Board of Review in order to vest the Tax Tribunal with jurisdiction to review the assessments. Even if the Tax Tribunal had granted the taxpayers' motion to amend their petition, it would not have vested the Tax Tribunal with jurisdiction because the amendment would not have changed the fact that the board of review did not first consider the true cash value assessment. Moreover, the taxpayers never claimed that they appealed the true cash value assessment to the board.