Taxpayer Unsuccessfully Argued the Public-Service Improvement Mistakenly Increased Value
In Nixon Road Holding Co., LLC v. Township of Delta, Michigan Court of Appeals, No. 303519, October 23, 2012, the Michigan Tax Tribunal's order upholding local property taxes imposed on three parcels of property was upheld because the taxpayer failed to provide any valuation disclosures showing that the property was improperly assessed and because the taxpayer's proposed valuation method of dividing the purchase price of the parent parcel by the number of child parcels was not an accepted method of calculating true cash value.
The taxpayer also argued that the township had mistakenly included in its calculations the value of public-service improvements that the taxpayer had made to the property for the purposes of platting and dividing the parent parcel. The Tax Tribunal found, however, that the property became uncapped for purposes of property taxes when the taxpayer acquired it, and the taxpayer did not show that any increase in taxable value following the uncapping event resulted from public-service improvements. Furthermore, the taxpayer did not submit any evidence demonstrating that any later assessments improperly included public-service improvements as additions.