(Chelsea Update would like to thank Matt Pegouskie for the information in this story.)
The Michigan Court of Appeals made decisions in three additional cases in the long-standing City of Dexter v 5 Healthy Towns Foundation (5HF) tax dispute.
All three decisions were in favor of 5HF. Of the approximately 22 actions filed in this dispute, determinations have been made in favor of the foundation 20 times. Two cases remain open.
Of the three appeals, all filed by the City of Dexter, two were technical questions, questioning lower court decisions (Washtenaw County Circuit Court – WCCC) on the State Tax Commission’s (STC) authority to determine what property is taxable. The cases involved tax year 2015, 2016 and 2017.
Washtenaw County Circuit Court determined, in these cases, the STC had no authority. On March 4, in a written opinion, the Court of Appeals agreed with WCCC, upholding the WCCC decision that the STC had no authority.
The third was an appeal on the actual merits of the tax case. Dexter appealed the decision by the Michigan Tax Tribunal (MTT) for the 2018 tax year. This case involved the City of Dexter’s ongoing claim the company who manages 5HF’s wellness centers should pay a ‘user’ tax equal to the property tax. The MTT determined 5HF uses the property for their mission.
The management company is simply 5HF’s agent to accomplish the Foundation’s mission and therefore should not pay a user tax. The Court of Appeals ruling confirms the MTT decision.
