Brighton Contests and Settles Tax Tribunal CasesBrighton Contests and Settles Tax Tribunal Cases

5/5/13 - A major loss in tax revenue to Michigan cities, townships and villages in the last few years has seen tax bills that have been appealed by companies to the Michigan Tax tribunal. Public school districts, counties, colleges, libraries and other public entities have also suffered as a result of the appeals. According to Brighton City Finance Director Kelly Hanna, in 2011 and 2012 the city paid out $440,000 to property owners — mostly commercial and industrial firms — which appealed their local property taxes to the Michigan Tax Tribunal. Hanna says 90 tax cases have now been settled between the city and the contesting parties for the years 2007-2012. City Manager Dana Foster tells WHMI it's very difficult for cities or townships to win cases that go before the tribunal. The MTT generally either rules in favor of the appealing party, or approves a compromise between the amount of tax relief the property owner is seeking and the value of the property according to the municipality. Foster says that thanks to the spirited legal defense presented before the tribunal by city attorney Paul Burns and his staff, the city has been able to get the $1.3 million in tax relief the companies sought whittled down to one-third that amount. Currently, the Aberdeen apartment complex; the Brighton Mall, which is contesting 2012 taxes; and Meijer - which is contesting 2011, 2012 and 2013 taxes — are the three largest unsettled cases. MJR Cinema,The Home Depot, the Brighton Mall and Summerville - a senior/assisted living development — are the four largest cases that the city has closed. The taxable value involved in those cases represents over one-third (34%) of the total taxable value in contention. In regard to the Brighton Mall, the mall owners contested tax years 2009-through-2011 before the court decided in the city's favor, ruling its property values should be maintained. As a result, the Brighton Mall received no refund. Still unresolved, Hanna says, are 220 properties before the tribunal for the years 2008-'12, representing a total of $31,000,000 in taxable value. Without being contested by the city, the cases would result in a loss of $540,000 in revenue to the city. (TT)