The refusal by the Michigan Supreme Court to accept the appeal of a property tax case by the Big Box retailer Menard’s is recognition of the problems created by the “Dark Stores” theory of property valuation, the Michigan Association of Counties (MAC) said today in reaction to the court’s order.
In May 2016, a unanimous panel of the Michigan Court of Appeals, in Menard, Inc. vs. City of Escanaba, expressly rejected the Tax Tribunal’s reliance on the “Dark Stores” method. Not only did the court find that the Tax Tribunal made a mistake of law, it also found that the tribunal didn’t properly perform its duty in evaluating evidence for determining value.
MAC’s Stephan Currie speaks with Frank Beckmann about Dark Stores issue.
The Supreme Court’s decision means the Court of Appeals ruling stands as precedent and must be followed. That court had ordered the Tax Tribunal to again review the case, taking additional evidence on proper valuation in doing so.
“This is a most promising development,” said Stephan Currie, MAC’s executive director. “The Tax Tribunal has to return to this matter and operate under the orders given by the Court of Appeals to properly assess the value of commercial property.” In this particular case, the tribunal had ruled the Menard property was worth 60 percent less than what Escanaba had determined via standard valuation practices.
MAC was one of several organizations filing amicus briefs in support of the city of Escanaba’s position in the case.
Under the Dark Stores method, the Tax Tribunal has reduced so many valuations of Big Box properties that local revenues to provide public services have been reduced by at least $100 million since 2013. This process is shifting more of the burden onto homeowners to fund the basic public services all Michigan communities and businesses utilize each day.
For more information on MAC, visit www.micounties.org.
MAC joined with a broad coalition of government and business groups at a May 30 event to highlight the ongoing, and worsening, crisis in Michigan’s physical infrastructure.
“Sound infrastructure is vital for economic growth. The drivers of our economy: manufacturing, agriculture and tourism depend on it,” said Andy Johnston, vice president of government affairs for the Grand Rapids Area Chamber of Commerce. “Infrastructure must be a data-driven discussion, and the data is clear. The Legislature needs to keep the funding promises made in 2015 for roads and begin laying the foundation to address other vital infrastructure systems.”
MAC’s Transportation Platform calls for “the logical development, interconnection and sustained maintenance of all transportation designs and infrastructures within our state.”
For more on the issue, see the press release, or visit fixmistate.org.
The National Association of Counties (NACo) urges counties to participate in the following call:
“Join the Stepping Up partners for the second Stepping Up Network Call: a deeper dive into the question “Do we conduct timely screening and assessments?” which is featured in the publication Reducing the Number of People with Mental Illness in Jails: Six Questions County Leaders Need to Ask. On this call, a representative from the Virginia Department of Behavioral Health and Developmental Services will discuss specific mental health screening tools and protocols used in regional and local jails. In addition, representatives from Champaign County, IL, and Douglas County, KS, will be available to discuss their counties’ screening and assessment processes and respond to participants’ questions. Prior to the call, participants should join or review the “Conducting Timely Mental Health Screening and Assessment in Jails” webinar, which will occur on Thursday, April 6 at 2pm ET. The webinar will be recorded and posted on the Stepping Up Toolkit“
Click here to register for the call.