Michigan Tax Tribunal Dismissed a Taxpayer's Property Tax Appeal
In Quality Behavioral Health, Inc. v. City of Detroit, Michigan Court of Appeals, No. 297664, September 27, 2011, the Michigan Tax Tribunal correctly dismissed a taxpayer's local property tax appeal petition because both the taxpayer and the assessor failed to allege facts indicating mutuality of mistake as required to trigger the applicability of the three-years-from-payment limitation period. If that limitation period did not apply, the usual time periods applied, and the taxpayer's tax appeal was not timely filed under them. In this case, the taxpayer did not allege that it told the assessor that its property was a group home. Rather, the taxpayer merely alleged that during an inspection by the city, someone on the premises told the city inspector that the property was a group home.
The Michigan Court of Appeals concluded that the three-years-from-payment time period was a limitations period and not jurisdictional. Accordingly, the tribunal had subject matter jurisdiction under the provision that granted exclusive and original jurisdiction to the tribunal regarding final determinations relating to assessment, valuation, rates, special assessments, allocation, or equalization under the property tax laws. Although the tribunal possessed subject matter jurisdiction, the failure to satisfy the three-years-from-payment time period rendered the appeal untimely.