Committee Addresses Michigan Tax Tribunal

The House Tax Policy Committee began hearing testimony on HB 5578, a bill aimed at clarifying the criteria used by the Michigan Tax Tribunal during an assessment dispute, aimed primarily at the use of comparable properties.

Sponsor of the bill Representative David Maturen (R-Vicksburg) said the purpose is to ensure the “highest and best use” of the property is relayed. The tribunal would be required to make an independent determination of the market which measures the potential uses of the property, economic viability, and competition. In comparable properties, the tribunal cannot compare with a use that is different from the highest and best use of the property, or if the sale or rental happened under different economic conditions than the highest and best use. The tribunal will determine information for each comparable that has been verified and discloses all private restrictions.

Vacant comparable properties will be excluded unless the vacancy is typical for marketing properties of the same class, if the timing is within a typical marketing exposure time period, if the vacancy does not reflect a use different from the highest and best use, or if the vacancy is not related to economic and market conditions different from the property.

Comparable properties with deed restrictions will also be excluded unless they assist in economic development of the property, if it was imposed for purposes of development, and does not materially increase the likelihood of vacancy or inactivity.

Tricia Kinley with the Michigan Chamber of Commerce testified that the chamber is not in favor of the bill. More testimony will be heard next week.

posted by PAA Online , Friday, April 29, 2016 10:10 AM
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