1 advanced class on tribunal procedures september 15, 2006 practice...with perspective jack van...

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Advanced Class on Tribunal Advanced Class on Tribunal ProceduresProcedures

September 15, 2006September 15, 2006

Practice...With PerspectivePractice...With PerspectiveJack Van Coevering, Chair, Tribunal MemberJack Van Coevering, Chair, Tribunal Member

Patricia L. Halm, Tribunal MemberPatricia L. Halm, Tribunal MemberPeter M. Kopke, Chief ClerkPeter M. Kopke, Chief Clerk

Kimbal R. Smith III, Former Tribunal MemberKimbal R. Smith III, Former Tribunal MemberChristine A. Derdarian, J.D., PAX Resolution Services, LLCChristine A. Derdarian, J.D., PAX Resolution Services, LLC

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AgendaAgenda

Introductions and OverviewIntroductions and Overview Jurisdiction, Pleading and Motion Practice, Jurisdiction, Pleading and Motion Practice,

New Legislation, Administrative Rule ChangesNew Legislation, Administrative Rule Changes Case Updates: SurveyCase Updates: Survey Stipulations & Consent JudgmentsStipulations & Consent Judgments Mediation: A Tool for Resolution & RevenueMediation: A Tool for Resolution & Revenue Do’s & Don’tsDo’s & Don’ts

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Introductions and Introductions and OverviewOverview

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State Tax CourtsState Tax Courts

Independent Courts following the Independent Courts following the Administrative Procedures ActAdministrative Procedures Act

Courts with the Administrative Agency Courts with the Administrative Agency following the Administrative Procedures following the Administrative Procedures ActAct

Commission of non-legal tax Commission of non-legal tax professionals.professionals.

Courts following the US Tax Court ModelCourts following the US Tax Court Model The TribunalThe Tribunal

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Overview of the Tax TribunalOverview of the Tax Tribunal Established in 1973. 1973 P.A. 186.Established in 1973. 1973 P.A. 186.

Single tax court for tax appeals handled in Single tax court for tax appeals handled in numerous boards and circuit courts.numerous boards and circuit courts.

Jurisdiction for all tax matters -- property, Jurisdiction for all tax matters -- property, business and personal tax matters.business and personal tax matters.

Multidisciplinary knowledge and skill – Multidisciplinary knowledge and skill – appraisal, assessing, accounting and law.appraisal, assessing, accounting and law.

Independent of tax enforcement agencies. Independent of tax enforcement agencies. E.R.O. 1991-15E.R.O. 1991-15

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The WorkThe Work Tax Tribunal Tax Tribunal annuallyannually receives approximately receives approximately

2,000 new appeals in the Entire Tribunal division 2,000 new appeals in the Entire Tribunal division and approximately 6,000 new appeals in the and approximately 6,000 new appeals in the Small Claims division. Small Claims division.

Most are property tax cases. Most are property tax cases. 4-5% of the appeals involve individual and 4-5% of the appeals involve individual and

business state tax disputes. business state tax disputes.

Current Status--Current Status-- Pending caseload:Pending caseload: 10,550 appeals10,550 appeals Representing roughly:Representing roughly: $1.5 billion in$1.5 billion in

disputed tax dollarsdisputed tax dollars

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The Tribunal’s Two The Tribunal’s Two Divisions:Divisions:

TTR 205.1101(d) “Entire tribunal” means the hearing division of the tribunal other than the small claims division.

TTR 205.1101(n) “Small claims division” means the residential property and small claims division.

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Jurisdiction, Pleading and Motion Jurisdiction, Pleading and Motion Practice, New Legislation, Practice, New Legislation,

Administrative Rule ChangesAdministrative Rule Changes

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JurisdictionJurisdiction The Tribunal has original and exclusive jurisdiction The Tribunal has original and exclusive jurisdiction

over property tax matters.over property tax matters.

Two Exceptions – Special assessments levied under Two Exceptions – Special assessments levied under the Drain Code or special assessments levied under the Drain Code or special assessments levied under the Inland Lakes Act.the Inland Lakes Act.

The Tribunal has concurrent (i.e., shares) The Tribunal has concurrent (i.e., shares) jurisdiction over non-property tax matters with the jurisdiction over non-property tax matters with the Ingham County Circuit Court in their capacity as the Ingham County Circuit Court in their capacity as the Court of Claims.Court of Claims.

MCL 205.731MCL 205.731

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Jurisdiction – Property Jurisdiction – Property Valuation AppealsValuation Appeals

For 2006:For 2006:

Taxpayers must protest their property’s assessment Taxpayers must protest their property’s assessment to the March Board of Review and file by June 30, to the March Board of Review and file by June 30, 2006, or2006, or

File within 30 days of action taken by a July or File within 30 days of action taken by a July or December Board of Review.December Board of Review.

File within 30 days of the issuance of actual notice of File within 30 days of the issuance of actual notice of an assessment increase if such notice was not an assessment increase if such notice was not properly sent to the taxpayer prior to the March Board properly sent to the taxpayer prior to the March Board of Review.of Review.

MCL 205.735MCL 205.735

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Jurisidiction – Property Jurisidiction – Property Valuation AppealsValuation Appeals

For 2007 and subsequent tax years:For 2007 and subsequent tax years:

Appeals relating to the valuation of property classified as residential and Appeals relating to the valuation of property classified as residential and agricultural real property or agricultural personal property require a protest agricultural real property or agricultural personal property require a protest to the March Board of Review and filing of the appeal by July 31 of the tax to the March Board of Review and filing of the appeal by July 31 of the tax year involved.year involved.

Appeals relating to the valuation of property classified as commercial, Appeals relating to the valuation of property classified as commercial, industrial, or development real property do not require a protest to the industrial, or development real property do not require a protest to the March Board of Review. Such appeals must be filed by May 31 of the tax March Board of Review. Such appeals must be filed by May 31 of the tax year involved.year involved.

Appeals relating to the valuation of property classified as commercial, Appeals relating to the valuation of property classified as commercial, industrial, or utility personal property do not require a protest to the March industrial, or utility personal property do not require a protest to the March Board of Review provided the taxpayer files the required personal property Board of Review provided the taxpayer files the required personal property statement with the local unit of government prior to the commencement of statement with the local unit of government prior to the commencement of the March Board of Review. Such appeals must be filed by May 31 of the the March Board of Review. Such appeals must be filed by May 31 of the tax year involved.tax year involved.

MCL 205.735aMCL 205.735a

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Jurisidiction – Property Jurisidiction – Property Valuation AppealsValuation Appeals

For 2007 and subsequent tax years:For 2007 and subsequent tax years:

File within 35 days of action taken by a July File within 35 days of action taken by a July or December Board of Review.or December Board of Review.

File within 35 days of the issuance of actual File within 35 days of the issuance of actual notice of an assessment increase if such notice of an assessment increase if such notice was not properly sent to the notice was not properly sent to the taxpayer prior to the March Board of taxpayer prior to the March Board of Review.Review.

MCL 205.735aMCL 205.735a

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Jurisdiction – Other Property Jurisdiction – Other Property AppealsAppeals

Principal Residence Exemptions:Principal Residence Exemptions:

For 2006 and subsequent tax years – appeal must be filed within 35 For 2006 and subsequent tax years – appeal must be filed within 35 days of the issuance of actual notice of the denial of the exemption.days of the issuance of actual notice of the denial of the exemption.

MCL 211.7ccMCL 211.7cc

Qualified Agricultural Exemptions:Qualified Agricultural Exemptions:

For 2006 – appeal must be filed within 30 days of the issuance of For 2006 – appeal must be filed within 30 days of the issuance of actual notice of the denial of the exemption.actual notice of the denial of the exemption.

For 2007 and subsequent tax years, appeal must be filed within 35 For 2007 and subsequent tax years, appeal must be filed within 35 days of the issuance of actual notice of the denial of the exemption.days of the issuance of actual notice of the denial of the exemption.

MCL 211.7ee. 205.735, and 205.735aMCL 211.7ee. 205.735, and 205.735a

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Jurisdiction – Other Property Jurisdiction – Other Property AppealsAppeals

Uncappings:Uncappings:

For 2006 and subsequent tax years, appeal must be filed within 35 For 2006 and subsequent tax years, appeal must be filed within 35 days of the receipt of notice of the uncapping.days of the receipt of notice of the uncapping.

MCL 211.27a and 211.27bMCL 211.27a and 211.27b

Special Assessments:Special Assessments:

For 2006 – appeal must be filed within 30 days of the date of the For 2006 – appeal must be filed within 30 days of the date of the hearing held to confirm the special assessment roll.hearing held to confirm the special assessment roll.

For 2007 and subsequent tax years, appeal must be filed within 35 For 2007 and subsequent tax years, appeal must be filed within 35 days of the date of the hearing held to confirm the special days of the date of the hearing held to confirm the special assessment roll.assessment roll.

MCL 205.735 and 205.735aMCL 205.735 and 205.735a

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Jurisdiction - FilingJurisdiction - Filing For 2006:For 2006:

Small Claims – Receipt or sent by first Small Claims – Receipt or sent by first class mail postmarked by the U.S. Postal class mail postmarked by the U.S. Postal Service on or before filing deadline (i.e., Service on or before filing deadline (i.e., June 30, 2006, etc.).June 30, 2006, etc.).

Entire Tribunal – Receipt or sent by Entire Tribunal – Receipt or sent by certified mail postmarked by the U.S. certified mail postmarked by the U.S. Postal Service on or before the filing Postal Service on or before the filing deadline (i.e., June 30, 2006, etc.)deadline (i.e., June 30, 2006, etc.)

MCL 205.735MCL 205.735

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Jurisdiction - FilingJurisdiction - Filing For 2007 and subsequent tax years:For 2007 and subsequent tax years:

Small Claims or Entire Tribunal – Receipt, Small Claims or Entire Tribunal – Receipt, mailing postmarked by the U.S. Postal mailing postmarked by the U.S. Postal Service on or before the filing deadline, or Service on or before the filing deadline, or delivery by a designated delivery service. delivery by a designated delivery service. Delivery by a designated delivery service Delivery by a designated delivery service may occur after the filing deadline if the may occur after the filing deadline if the appeal was given to the delivery service appeal was given to the delivery service by the filing deadline.by the filing deadline.

MCL 205.735aMCL 205.735a

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Jurisdiction – “Party in Jurisdiction – “Party in Interest”Interest”

The Michigan Court of Appeals stated in The Michigan Court of Appeals stated in Covert TwpCovert Twp v v Consumers Power CoConsumers Power Co, 217 Mich App 352, 356; 551 NW2d , 217 Mich App 352, 356; 551 NW2d 464, 466 (1996):464, 466 (1996):

A party is aggrieved by a judgment or order when it A party is aggrieved by a judgment or order when it operates on the party's rights and property, or bears operates on the party's rights and property, or bears directly on the party's interest. directly on the party's interest. Midland Cogeneration Midland Cogeneration Venture Ltd Partnership v Public Service Comm,Venture Ltd Partnership v Public Service Comm, 199 Mich 199 Mich App 286, 304, 501 NW2d 573 (1993). An appeal can be App 286, 304, 501 NW2d 573 (1993). An appeal can be taken only by parties who are affected by the judgment taken only by parties who are affected by the judgment appealed from. In other words, there must be some appealed from. In other words, there must be some substantial rights of the parties that would be prejudiced by substantial rights of the parties that would be prejudiced by the judgment. the judgment. Grace Petroleum Corp v Public Service Grace Petroleum Corp v Public Service Comm,Comm, 178 Mich App 309, 312-313, 443 NW2d 790 (1989). 178 Mich App 309, 312-313, 443 NW2d 790 (1989).

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JurisdictionJurisdiction

The statutory requirements governing the The statutory requirements governing the filing of an appeal are not merely procedural filing of an appeal are not merely procedural requirements. Rather, the Michigan Court of requirements. Rather, the Michigan Court of Appeals has held that these requirements Appeals has held that these requirements must be met to properly invoke the must be met to properly invoke the Tribunal’s subject matter jurisdiction.Tribunal’s subject matter jurisdiction.

Electronic Data Systems CorporationElectronic Data Systems Corporation v v Flint Flint TownshipTownship, 253 Mich 538; 656 NW2d 215 , 253 Mich 538; 656 NW2d 215 (2002) (2002)

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Jurisdiction - ExceptionsJurisdiction - Exceptions Taxpayers may appeal an “excessive” Taxpayers may appeal an “excessive”

assessment without protest or filing an appeal by assessment without protest or filing an appeal by the appropriate filing deadline with the the appropriate filing deadline with the assessment was established by the assessing assessment was established by the assessing officer or taxpayer as the result of a clerical error officer or taxpayer as the result of a clerical error or mutual mistake of fact.or mutual mistake of fact.

If the assessment is determined to have been the If the assessment is determined to have been the result of a clerical error or mutual mistake of fact, result of a clerical error or mutual mistake of fact, the Tribunal would have the authority to correct the Tribunal would have the authority to correct the current tax year assessment and the three (3) the current tax year assessment and the three (3) previous tax year assessments.previous tax year assessments.

MCL 211.53aMCL 211.53a

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Jurisidction – MCL 211.53aJurisidction – MCL 211.53aWith respect to the meaning of the terms “clerical error” and With respect to the meaning of the terms “clerical error” and “mutual mistake of fact,” the Michigan Court of Appeals “mutual mistake of fact,” the Michigan Court of Appeals stated in stated in Ford Motor CoFord Motor Co v v Bruce TownshipBruce Township, 264 Mich App 1; , 264 Mich App 1; 689 NW2d 764 (2004):689 NW2d 764 (2004):

An error that is not clerical in nature-the result of typing, An error that is not clerical in nature-the result of typing, transposing, or calculating assessment figures incorrectly-is transposing, or calculating assessment figures incorrectly-is not correctable under the statute. not correctable under the statute. Int'l Place Apartments-IV Int'l Place Apartments-IV v v [[Ypsilantai Twp, Ypsilantai Twp, 216 Mich App 104]…109, 548 N.W.2d 668. 216 Mich App 104]…109, 548 N.W.2d 668. IdId at 8-9. at 8-9.

So, a “mutual mistake of fact” is a shared or common error, So, a “mutual mistake of fact” is a shared or common error, misconception, misunderstanding, or erroneous belief about misconception, misunderstanding, or erroneous belief about a material fact. MCL 211.53a, then, requires that both the a material fact. MCL 211.53a, then, requires that both the assessing officer and the taxpayer have the same erroneous assessing officer and the taxpayer have the same erroneous belief regarding the same material fact, which belief directly belief regarding the same material fact, which belief directly caused both the excess assessment and excess payment of caused both the excess assessment and excess payment of taxes. taxes. IdId at 9. at 9.

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Jurisdiction – MCL 211.53bJurisdiction – MCL 211.53b In addition to the correction of clerical errors or mutual In addition to the correction of clerical errors or mutual

mistakes of fact, local units of government can correct a mistakes of fact, local units of government can correct a “qualified error” at its July or December Board of Review “qualified error” at its July or December Board of Review and those corrections or the refusal to make such and those corrections or the refusal to make such corrections can be appealed to the Tribunal. Those appeals corrections can be appealed to the Tribunal. Those appeals must be filed:must be filed:

For 2006, within 30 days of the issuance of notice of a For 2006, within 30 days of the issuance of notice of a “53b” correction.“53b” correction.

MCL 205.735MCL 205.735

For 2007 and subsequent tax years, within 35 days of “53b” For 2007 and subsequent tax years, within 35 days of “53b” issuance of notice of the correction.issuance of notice of the correction.

MCL 205.735aMCL 205.735a

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Pleading and Motion Practice – Pleading and Motion Practice – Small ClaimsSmall Claims

MCL 205.735 requires the filing of a MCL 205.735 requires the filing of a petition to initiate an appeal.petition to initiate an appeal.

Small Claims appeal are, however, Small Claims appeal are, however, typically initiated by a letter of appeal.typically initiated by a letter of appeal.

Letters of appeal treated as defective Letters of appeal treated as defective petitions that are cured by the completion petitions that are cured by the completion and timely returned of a Small Claims and timely returned of a Small Claims petition form.petition form.TTR 320TTR 320

A Small Claims petition form is available A Small Claims petition form is available on the Tribunal’s website.on the Tribunal’s website.

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The Tribunal no longer defects The Tribunal no longer defects Petitioner’s for failing to properly Petitioner’s for failing to properly complete a Small Claims petition form complete a Small Claims petition form or pay the required fee. Rather, the or pay the required fee. Rather, the Tribunal will place the Petitioner in Tribunal will place the Petitioner in default.default.

Once the completed petition form has Once the completed petition form has been returned and “verified,” the been returned and “verified,” the Tribunal sends a Small Claims answer Tribunal sends a Small Claims answer form to the local unit of government.form to the local unit of government.

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A copy of the answer form must be served on the A copy of the answer form must be served on the petitioner’s authorized representative or the petitioner’s authorized representative or the petitioner, if the petitioner does not have an petitioner, if the petitioner does not have an authorized representative.authorized representative.TTR 332 TTR 332

If the answer form is not completed and returned, If the answer form is not completed and returned, the Tribunal will notify the respondent that it has the Tribunal will notify the respondent that it has been placed in default and, if the default is not been placed in default and, if the default is not timely cured, the Tribunal will conduct a Small timely cured, the Tribunal will conduct a Small Claims default hearing.Claims default hearing.TTR 247TTR 247

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Evidence must be filed and Evidence must be filed and exchanged at least 14 days in exchanged at least 14 days in advance of the scheduled Small advance of the scheduled Small Claims hearing or it may be Claims hearing or it may be excluded. TTR 342excluded. TTR 342

There is no discovery in the Small There is no discovery in the Small Claims Division except by leave of Claims Division except by leave of the Tribunal. TTR 111the Tribunal. TTR 111

There is a limited motion practice in There is a limited motion practice in the Small Claims Division.the Small Claims Division.

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Pleading and Motion Practice – Pleading and Motion Practice – Entire TribunalEntire Tribunal

A formal petition is required to initiate an A formal petition is required to initiate an Entire Tribunal appeal.Entire Tribunal appeal.

The petition must be served on the assessor The petition must be served on the assessor and the city clerk or township supervisor or and the city clerk or township supervisor or clerk, as appropriate, by certified mail. The clerk, as appropriate, by certified mail. The petition must also be served on school petition must also be served on school board, the county equalization director, and board, the county equalization director, and county clerk. That service may be made by county clerk. That service may be made by first class mail. MCL 205.735, MCL first class mail. MCL 205.735, MCL 205.735a, and TTR 208.205.735a, and TTR 208.

Failure to provide a proof of service will Failure to provide a proof of service will result in the placement of the petitioner in result in the placement of the petitioner in default. TTR 247.default. TTR 247.

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Petitions are required to contain Petitions are required to contain separately numbered paragraphs separately numbered paragraphs with each paragraph limited to a with each paragraph limited to a single statement of fact.single statement of fact.

TTR 240TTR 240 The Tribunal does not generally The Tribunal does not generally

review petitions for strict compliance review petitions for strict compliance with TTR 240.with TTR 240.

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The respondent is required to file an answer The respondent is required to file an answer or a responsive motion (i.e., a motion to or a responsive motion (i.e., a motion to strike, motion for clarification, motion to strike, motion for clarification, motion to dismiss, etc.)dismiss, etc.)

Answers are required to contain separately Answers are required to contain separately numbered paragraphs corresponding to the numbered paragraphs corresponding to the numbered paragraphs in the petition that numbered paragraphs in the petition that admit, deny, or neither admit nor deny the admit, deny, or neither admit nor deny the facts alleged in the petition. TTR 245facts alleged in the petition. TTR 245

Failure to provide a proof of service will result Failure to provide a proof of service will result in the placement of the respondent in default. in the placement of the respondent in default. TTR 247.TTR 247.

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Motions are written requests for action Motions are written requests for action and require the payment of a filing fee and require the payment of a filing fee and a proof of service.and a proof of service.

If the filing fee is not paid, the moving If the filing fee is not paid, the moving party will be defected for the fee. If party will be defected for the fee. If the defect is not cured, there will be the defect is not cured, there will be no action taken on the motion.no action taken on the motion.

Letters requesting action will not be Letters requesting action will not be acted as they are not considered to be acted as they are not considered to be motions.motions.

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Motions to amend to include a subsequent Motions to amend to include a subsequent tax year’s assessment must be filed by filing tax year’s assessment must be filed by filing deadline provided by statute (i.e., May 31, deadline provided by statute (i.e., May 31, 2007 or July 31, 2007, as appropriate).2007 or July 31, 2007, as appropriate).

Problems have arisen with petitions Problems have arisen with petitions addressing assessed and taxable value, addressing assessed and taxable value, motions to amend addressing taxable value motions to amend addressing taxable value only, and subsequent stipulations only, and subsequent stipulations addressing assessed and taxable values for addressing assessed and taxable values for all tax years at issue.all tax years at issue.

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Tribunal Notice 2005-9 provides specific Tribunal Notice 2005-9 provides specific criteria for the filing of motions to extend the criteria for the filing of motions to extend the time for the filing and exchange of valuation time for the filing and exchange of valuation disclosures and prehearing statements.disclosures and prehearing statements.

If the criteria is not met, the motion will be If the criteria is not met, the motion will be denied unless good cause has been shown to denied unless good cause has been shown to grant the motion. On-going settlement grant the motion. On-going settlement discussions, the hiring of a new authorized discussions, the hiring of a new authorized representative, or the beginning or belated representative, or the beginning or belated enforcement of discovery are not considered enforcement of discovery are not considered good cause for the granting of such motions.good cause for the granting of such motions.

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New Legislation – HB 6168New Legislation – HB 6168

The bill would:The bill would:

Provide for mediation of property tax matters.Provide for mediation of property tax matters.

Mediation is not a substitute for settlement negotiations. Rather, Mediation is not a substitute for settlement negotiations. Rather, mediation would be an additional “mechanism” to achieve mediation would be an additional “mechanism” to achieve resolution without hearing.resolution without hearing.

Mediation would be voluntary.Mediation would be voluntary.

Parties would jointly select a mediator from list of mediators Parties would jointly select a mediator from list of mediators certified for mediation by the Tribunal.certified for mediation by the Tribunal.

Statements and submissions made during mediation would not be Statements and submissions made during mediation would not be subject to disclosure without the written consent of all parties.subject to disclosure without the written consent of all parties.

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New Legislation – HB 6169New Legislation – HB 6169

The bill would:The bill would:

Provide for issuance of proposed Provide for issuance of proposed Small Claims decisions by Small Claims decisions by administrative law judges.administrative law judges.

Permit the Tribunal to keep its Permit the Tribunal to keep its annual fee revenue.annual fee revenue.

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New Legislation – HB 6170New Legislation – HB 6170The bill would:The bill would:

Increase the Small Claims Division jurisdictional limitation for non-Increase the Small Claims Division jurisdictional limitation for non-property tax matters and special assessments from $6,000 to property tax matters and special assessments from $6,000 to $20,000.$20,000.

Permit the use of Small Claims procedures in an Entire Tribunal Permit the use of Small Claims procedures in an Entire Tribunal appeal.appeal.

Provide for the filing of exceptions to a Proposed Opinion and Provide for the filing of exceptions to a Proposed Opinion and Judgment rendered by a hearing officer (i.e., administrative law Judgment rendered by a hearing officer (i.e., administrative law judge) or hearing referee. Tribunal members will consider the judge) or hearing referee. Tribunal members will consider the exceptions, if any, and the case files and determine whether the exceptions, if any, and the case files and determine whether the proposed decisions should be adopted, modified, or a rehearing proposed decisions should be adopted, modified, or a rehearing held.held.

Formalize the conducting of telephonic Small Claims hearings and Formalize the conducting of telephonic Small Claims hearings and provide for the conducting of Small Claims in-person hearings at provide for the conducting of Small Claims in-person hearings at locations mutually agreed upon by all parties and the Tribunal. locations mutually agreed upon by all parties and the Tribunal.

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New Legislation – HB 6171New Legislation – HB 6171 The bill would:The bill would:

Remove the limitation on the number of Remove the limitation on the number of Tribunal members of the same professional Tribunal members of the same professional discipline.discipline.

This removal would widen the pool of This removal would widen the pool of candidates for appointment and permit the candidates for appointment and permit the appointment of multi-discipline professionals appointment of multi-discipline professionals (i.e., assessor/appraisers; (i.e., assessor/appraisers; assessor/accountants; assessor/attorneys; assessor/accountants; assessor/attorneys; etc.)etc.)

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Administrative Rule Administrative Rule ChangesChanges

Case Information Statement to be filed Case Information Statement to be filed with Petitionwith Petition

Case Management Conference versus Case Management Conference versus Counsel ConferenceCounsel Conference

Witness Lists, Prehearing Statements, Witness Lists, Prehearing Statements, Exhibit ListsExhibit Lists

Stipulation of FactsStipulation of Facts Expert Witnesses – Valuation Disclosure or Expert Witnesses – Valuation Disclosure or

Written SummaryWritten Summary Non-Property Scheduling Orders – Property Non-Property Scheduling Orders – Property

ImplicationsImplications

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Case Updates: SurveyCase Updates: Survey

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Discussion of Michigan Discussion of Michigan CasesCases

Local Requirements Prior to Board of Local Requirements Prior to Board of ReviewReview

Calculating Taxable Value for Property Calculating Taxable Value for Property Under ConstructionUnder Construction

Transfer of Ownership & UncappingTransfer of Ownership & Uncapping Additions and LossesAdditions and Losses Equalization RatiosEqualization Ratios Property Tax Exemption CasesProperty Tax Exemption Cases Mutual Mistake of FactMutual Mistake of Fact

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Local Requirements Prior to Local Requirements Prior to Board of ReviewBoard of Review

AERC of Michigan, LLC AERC of Michigan, LLC v v City of City of Grand Rapids, Grand Rapids, 266 Mich App 717; 266 Mich App 717; 702 NW2d 692 (2005)702 NW2d 692 (2005)

Fink Fink v v City of Detroit, City of Detroit, 124 Mich App 124 Mich App 44; 333 NW2d 376 (1983)44; 333 NW2d 376 (1983)

Freund Freund v v City of Flint, City of Flint, unpublished unpublished opinion per curiam of the Court of opinion per curiam of the Court of Appeals, decided December 8, 1989, Appeals, decided December 8, 1989, (Docket No. 110415)(Docket No. 110415)

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Calculating Taxable Value for Calculating Taxable Value for Property Under ConstructionProperty Under Construction

Kok Kok v v Cascade Charter Township, Cascade Charter Township, 265 Mich App 413; 695 NW2d 545 265 Mich App 413; 695 NW2d 545 (2005)(2005)

DeSanto DeSanto v v Township of Northville, Township of Northville, unpublished opinion per curiam of unpublished opinion per curiam of the Court of Appeals, decided March the Court of Appeals, decided March 14, 2006, (Docket No. 258430)14, 2006, (Docket No. 258430)

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Transfer of Ownership & Transfer of Ownership & UncappingUncapping

Signature Villas, LLC Signature Villas, LLC v v City of Ann City of Ann Arbor, Arbor, COA Co. 264003 (February 14, COA Co. 264003 (February 14, 2006)2006)

Colonial Square Cooperative Colonial Square Cooperative v v City City of Ann Arbor, of Ann Arbor, 263 Mich App 208; 687 263 Mich App 208; 687 NW2d 618 (2004)NW2d 618 (2004)

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Small Claims DecisionsSmall Claims Decisions

Nelson Nelson v v Village of Leroy, Village of Leroy, (MTT Docket (MTT Docket No. 311865, February 28, 2006)No. 311865, February 28, 2006)

Nelson Nelson v v Village of Leroy, Village of Leroy, (MTT Docket (MTT Docket No. 311866, February 28, 2006)No. 311866, February 28, 2006)

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HRTW, LLCHRTW, LLC v v Township of Delta, Township of Delta, (MTT Docket No(MTT Docket No.. 314104, February 314104, February 28, 2006) 28, 2006)

Lakewood Cottages, LLC Lakewood Cottages, LLC v v Township Township of Sanilac, of Sanilac, (MTT Docket No. 302715, (MTT Docket No. 302715, January 6, 2005)January 6, 2005)

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Additions and LossesAdditions and Losses

WPW Acquisitions WPW Acquisitions v v City of Troy, City of Troy, 466 Mich 466 Mich 117; 643 NW2d 564 (2002)117; 643 NW2d 564 (2002)

City of Southfield City of Southfield v v Cranbrook Centre, LP, Cranbrook Centre, LP, and Americenter of Southfield, and Americenter of Southfield, 04-058112-04-058112-CZ-set for pretrial 07/12/06 CZ-set for pretrial 07/12/06

Issue: Whether a reduction in the Issue: Whether a reduction in the property’s occupancy rate entitles property’s occupancy rate entitles Petitioner to a reduction in taxable value Petitioner to a reduction in taxable value as a “loss” pursuant to MCL 211.34d(h)as a “loss” pursuant to MCL 211.34d(h)(iii).(iii).

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Equalization RatiosEqualization Ratios

Steelcase Inc Steelcase Inc v v City of Kenwood, City of Kenwood, unpublished opinion per curiam of unpublished opinion per curiam of the Court of Appeals, decided the Court of Appeals, decided September 20, 2005, (Docket No. September 20, 2005, (Docket No. 256174)256174)

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Property Tax Exemption Property Tax Exemption CasesCases

Poverty ExemptionsPoverty Exemptions

Mandel Mandel v v City of Oak Park, City of Oak Park, (MTT (MTT Docket No. 274378, August 15, Docket No. 274378, August 15, 2002) Precedential decision2002) Precedential decision

Masters Masters v v City of Mason, City of Mason, (MTT (MTT Docket No. 303300, April 14, 2004)Docket No. 303300, April 14, 2004)

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Conservation EasementsConservation Easements

Michigan Nature AssociationMichigan Nature Association v v Township of Township of Saugatuck, Saugatuck, (MTT Docket No. 283322, (MTT Docket No. 283322, November 10, 2004)November 10, 2004)

Lincoln Institute of Land Policy, Lincoln Institute of Land Policy, www.lincolninst.eduwww.lincolninst.edu, online courses: , online courses: Valuing Land Affected by Conservation Valuing Land Affected by Conservation EasementsEasements

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Charitable ExemptionsCharitable Exemptions

Wexford Medical Group Wexford Medical Group vv City of City of Cadillac, Cadillac, 474 Mich 192; 713 NW2d 734 474 Mich 192; 713 NW2d 734 (2006): Primary issue was “…whether (2006): Primary issue was “…whether the Tax Tribunal or the judiciary may the Tax Tribunal or the judiciary may impose a threshold level of charitable impose a threshold level of charitable care or public health services when care or public health services when the Legislature has not done so.”the Legislature has not done so.”

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City-owned PropertyCity-owned Property

City of Mount Pleasant City of Mount Pleasant v v State Tax Commission,State Tax Commission, 267 Mich App 1; 703 NW2d 227 (2005)267 Mich App 1; 703 NW2d 227 (2005)

Leave to Appeal was GRANTED on January 13, Leave to Appeal was GRANTED on January 13, 2006. The issue is “…limited to whether MCL 2006. The issue is “…limited to whether MCL 211.7m exempts property from taxation on the 211.7m exempts property from taxation on the basis that it is ‘used for public purposes’ within the basis that it is ‘used for public purposes’ within the meaning of that statutory provision when the meaning of that statutory provision when the property is being assembled and prepared with property is being assembled and prepared with infrastructure for eventual sale for economic infrastructure for eventual sale for economic development purposes that have been determined development purposes that have been determined by the city to be in the public interest.”by the city to be in the public interest.”

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Mutual Mistake of FactMutual Mistake of Fact

Ford Motor Company Ford Motor Company v v City of City of Woodhaven, et al,Woodhaven, et al, 475 Mich 425; 716 475 Mich 425; 716 NW2d 247 (2006)NW2d 247 (2006)

MCL 211.53bMCL 211.53b

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Stipulations and Consent Stipulations and Consent JudgmentsJudgments

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Stipulations & Consent Stipulations & Consent JudgmentsJudgments

CONNIE’S TOP TEN REASONS WHY YOUR STIPULATION ARE NOT ACCEPTED:CONNIE’S TOP TEN REASONS WHY YOUR STIPULATION ARE NOT ACCEPTED:

Failure to provide justification (and/or calculations) for the reduction of the taxable value to a figure Failure to provide justification (and/or calculations) for the reduction of the taxable value to a figure lower than the assessed value.lower than the assessed value.

Failure to provide original signature(s).Failure to provide original signature(s). Failure to submit an original stipulation.Failure to submit an original stipulation. Including a year in the stipulation over which the Tribunal has no jurisdiction.Including a year in the stipulation over which the Tribunal has no jurisdiction. Failure to pay the $25 filing fee for the stipulation following issuance of a defect letter.Failure to pay the $25 filing fee for the stipulation following issuance of a defect letter. Principal Residence/Qualified Agricultural Exemption cases:Principal Residence/Qualified Agricultural Exemption cases:

Failure to provide a signature by the unit that denied the exemption.Failure to provide a signature by the unit that denied the exemption. Inclusion of a year not previously denied.Inclusion of a year not previously denied.

Assessor’s Stipulations (a stipulation asking the Tribunal to take jurisdiction where no case is Assessor’s Stipulations (a stipulation asking the Tribunal to take jurisdiction where no case is currently pending): Failure to specify in detail the mutual mistake and/or clerical error at issue.currently pending): Failure to specify in detail the mutual mistake and/or clerical error at issue.

Failure of an agent who signs the stipulation to file an appearance.Failure of an agent who signs the stipulation to file an appearance. The stipulation includes the assessed and state equalized values when only the taxable value was The stipulation includes the assessed and state equalized values when only the taxable value was

initially appealed.initially appealed. Poverty appeals: The stipulation reflects only a loss to the taxable value; a loss to a property should Poverty appeals: The stipulation reflects only a loss to the taxable value; a loss to a property should

reflect a loss to both the state equalized and taxable values.reflect a loss to both the state equalized and taxable values.

Bonus - ErratasBonus - Erratas If the If the TribunalTribunal makes an error on a Consent Judgment or Opinion and Judgment, upon written makes an error on a Consent Judgment or Opinion and Judgment, upon written notification of the error, the Tribunal will issue an Erratum.notification of the error, the Tribunal will issue an Erratum.If the If the partiesparties submit incorrect information to the Tribunal on the Stipulation, then the parties must submit incorrect information to the Tribunal on the Stipulation, then the parties must file a motion to correct the Consent Judgment. file a motion to correct the Consent Judgment.

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Mediation: A Tool for Mediation: A Tool for Resolution & RevenueResolution & Revenue

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Do’s & Don’tsDo’s & Don’ts

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Do’s & Don’tsDo’s & Don’ts

PREFACEPREFACE

MORE hearingsMORE hearings MORE timely decisionsMORE timely decisions

THIS IS WHAT WE NEED…THIS IS WHAT WE NEED…

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Do’s & Don’ts (con’t)Do’s & Don’ts (con’t)

DO’sDO’s…… Mind deadlines…for yourself…vacations, Mind deadlines…for yourself…vacations,

leave, illness, etc.leave, illness, etc. For your colleagues…cover the municipality’s For your colleagues…cover the municipality’s

behind!...(a bad hearing is a bad result)behind!...(a bad hearing is a bad result) Submit adjournment and rescheduling Submit adjournment and rescheduling

requests ASAPrequests ASAP Submit evidence timely…anticipate the workSubmit evidence timely…anticipate the work Mediation/agreement is your friendMediation/agreement is your friend

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DO’sDO’s…… Look at Petitioner’s evidence and be Look at Petitioner’s evidence and be

prepared to comment…same comp’sprepared to comment…same comp’s Submit information before the hearing…Submit information before the hearing…

don’t surprise the judgedon’t surprise the judge Per s.f. analysis < valuation disclosurePer s.f. analysis < valuation disclosure Poverty exemptions…be proactive with Poverty exemptions…be proactive with

BORBOR Appraisers alone < adequate coverageAppraisers alone < adequate coverage

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Do’s & Don’ts (con’t)Do’s & Don’ts (con’t) DO’sDO’s……

Contact the attorney ASAP...facilitates counsel Contact the attorney ASAP...facilitates counsel conferences, exchange of meaningful information…conferences, exchange of meaningful information…keeps the target in sitekeeps the target in site

Create a good working relationship with the attorney…Create a good working relationship with the attorney…cuts expenses and keeps revenues in the long runcuts expenses and keeps revenues in the long run

Make sure all three approaches to value are considered Make sure all three approaches to value are considered and documented to the fact…including the concluding and documented to the fact…including the concluding value methodologyvalue methodology

Narratives go a long way to bridge the gaps between Narratives go a long way to bridge the gaps between mass appraisal and subject property valuationmass appraisal and subject property valuation

Bring market studies to support valuationsBring market studies to support valuations

An ounce of prevention=a pound of cure!An ounce of prevention=a pound of cure!

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DON’T… DON’T… be latebe late DODO map out the route map out the route DO DO come earlycome early DODO listen to the weather reports listen to the weather reports

DON’T… DON’T… ignore/dismiss evidence of ignore/dismiss evidence of opposing party as being inadequateopposing party as being inadequate

DO DO come prepared to discuss evidence come prepared to discuss evidence submitted by opposing party, no matter its submitted by opposing party, no matter its content/formcontent/form

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DON’T… DON’T… take your familiarity for grantedtake your familiarity for granted DO DO become familiar with what you are submittingbecome familiar with what you are submitting DODO assist your “team” in the presentation of your assist your “team” in the presentation of your

evidenceevidence DODO have sales, income and expense, and cost have sales, income and expense, and cost

information plus verificationinformation plus verification DO DO have sources of information usedhave sources of information used DO DO have appraisal process followed, techniques have appraisal process followed, techniques

used and calculations made (check your math!)used and calculations made (check your math!) DO DO consider hypotheticalsconsider hypotheticals

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DON’T… DON’T… minimize the importance of minimize the importance of testimonytestimony DO DO speak slowly and clearlyspeak slowly and clearly DODO provide concise explanations provide concise explanations DODO use NON-technical terms use NON-technical terms DODO be friendly, positive, consistent, be friendly, positive, consistent,

confident and politeconfident and polite DODO be mindful to adjust to pressures be mindful to adjust to pressures

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DON’T… DON’T… make excuses for being make excuses for being unprepared…i.e. unprepared…i.e. DON’T whine!DON’T whine! DO DO prepare, prepare and prepare!prepare, prepare and prepare! DO DO take responsibility for defending the take responsibility for defending the

appraisal/assessment and the evidenceappraisal/assessment and the evidence DODO take the attorney up on the offer to take the attorney up on the offer to

prepare---it is not beneath you to do prepare---it is not beneath you to do so!...meet regularlyso!...meet regularly

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DON’TsDON’Ts…in general…in general Expect to “wing it” in the hearingExpect to “wing it” in the hearing Use technical termsUse technical terms Continue to finish a statement under Continue to finish a statement under

objection, STOP!objection, STOP! Take the process personallyTake the process personally Argue with the Judge or the opposing Argue with the Judge or the opposing

partiesparties

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DON’TsDON’Ts…in general…in general Be an advocate except for your own Be an advocate except for your own

objective opinion of valueobjective opinion of value Answer a question unless you Answer a question unless you

understand the questionunderstand the question Be unfamiliar with your evidence and Be unfamiliar with your evidence and

have to fumble through the pages have to fumble through the pages looking for informationlooking for information

Assume that the appraisal report will Assume that the appraisal report will “stand on its own” “stand on its own”

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DO’sDO’s…in general…in general Come prepared to explain/defend the work Come prepared to explain/defend the work

product of others upon whom you reliedproduct of others upon whom you relied Provide concise explanationsProvide concise explanations Keep thoughts orderly and systematicKeep thoughts orderly and systematic Listen to the full question before answeringListen to the full question before answering If you do not understand a question, ask If you do not understand a question, ask

for clarificationfor clarification Exercise your oral communication skillsExercise your oral communication skills

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DO’sDO’s…in general…in general Prepare by playing devil’s advocatePrepare by playing devil’s advocate When possible use “yes” and “no”When possible use “yes” and “no” Face the Judge when respondingFace the Judge when responding Leave sarcasm and egos at the doorLeave sarcasm and egos at the door Be familiar with your appraisalBe familiar with your appraisal Analyze other cases (e.g. Judge’s Analyze other cases (e.g. Judge’s

opinions, testimony transcripts)opinions, testimony transcripts)

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YOUR Perspective…YOUR Perspective…

What can WE do for you?What can WE do for you?

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Listserve InclusionListserve Inclusion

To be included on the Tribunal’s Listserve, To be included on the Tribunal’s Listserve,

e mail:e mail:

[email protected]@mich.gov

Subject: SubscribeSubject: Subscribe

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For more information, please contact the For more information, please contact the Tribunal’s internet address atTribunal’s internet address at

http://www.http://www.mmichigan.gov/taxtribunalichigan.gov/taxtribunal OR OR contact the Tribunal at:contact the Tribunal at:Michigan Tax TribunalMichigan Tax Tribunal

PO Box 30232PO Box 30232Lansing, MI 48913Lansing, MI 48913PH: 517/373-3003PH: 517/373-3003FAX: 517/373-1633FAX: 517/373-1633

Michigan Tax TribunalMichigan Tax Tribunal

1 advanced class on tribunal procedures september 15, 2006 practice...with perspective jack van...

Documents

tribunal slide

tax appeals

work tax tribunal

tribunal procedures

nonproperty tax matters

single tax court

property tax cases

overview slide