Arthur Bienz v. Township of Clarence
333530
| Mich. Ct. App. | Oct 12, 2017Background
- Petitioners Arthur and Gail Bienz bought a parcel in 2014 for $56,001; the 2015 assessed value was $30,300 and taxable value $24,310.
- Petitioners petitioned the March Board of Review; the Board lowered assessed value to $28,000 (matching petitioners’ asserted true cash value) but left the taxable value unchanged.
- Petitioners appealed to the Michigan Tax Tribunal (MTT), framing the appeal as contesting only the 2015 taxable value, arguing it should be $15,590 based on an alleged 2003 improper assessment.
- Petitioners’ theory: after a 2003 transfer the parcel’s taxable value was overstated (they say true cash value should have been based on land-value tables), producing a chained overassessment through capped annual increases to 2015.
- MTT found petitioners failed to show the 2003 assessed value was improper, relied on 2003 and 2014 arm’s-length sales supporting the assessed/true cash value, and upheld the 2015 taxable value of $24,310.
- The Court of Appeals affirmed, holding petitioners either waived or failed to preserve a true cash value challenge for 2014 and that the MTT’s finding about 2003 was supported by substantial evidence.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether 2015 taxable value should be reduced because prior (2003) assessed value was improper | Bienz: 2003 assessed value should have reflected land-value table true cash value, yielding a 2003 taxable value of $11,818 and a 2015 taxable value of $15,590 after capped increases | Township: 2003 assessment matched market transfers (2001, 2003 sales); taxable value properly set based on assessed (50% of true cash value) after transfer | Held: Petitioners failed to show 2003 assessment improper; MTT’s finding supported by substantial evidence; taxable value affirmed |
| Whether petitioner can challenge 2014/2015 true cash value on appeal | Bienz: disputes MTT’s acceptance of 2014 sale price as true cash value | Township: petition limited appeal to taxable value; petitioners agreed below that true cash value was $56,000 | Held: Issue not properly before MTT/appeals court; petitioner waived/assented to true cash value determination |
| Whether land-value tables control true cash value instead of sales evidence | Bienz: land-value table yields lower value for 2003 | Township: market sales control; no authority that land tables override sale price | Held: Court rejects reliance on land tables absent authority; market sales control true cash value |
| Whether MTT may reduce current taxable value for an earlier unconstitutional increase | Bienz: seeks reduction under precedent allowing reduction for prior unconstitutional increases | Township: argues no showing of unconstitutional increase | Held: Court assumes MTT had authority but finds no unconstitutional prior increase shown; no relief granted |
Key Cases Cited
- Booth Newspapers, Inc. v. Univ. of Michigan Bd. of Regents, 444 Mich 211 (court will not ordinarily review issues raised first on appeal)
- Bates Assoc., LLC v. 132 Assoc., LLC, 290 Mich App 52 (party cannot accept action below then raise as error on appeal)
- Trinity Health-Warde Lab, LLC v. Charter Twp. of Pittsfield, 317 Mich App 629 (scope of appellate review of MTT decisions)
- Mich Props., LLC v. Meridian Twp., 491 Mich 518 (standard of review for MTT and authority to reduce prior unconstitutional taxable-value increases)
- WPW Acquisition Co. v. City of Troy, 250 Mich App 287 (true cash value synonymous with fair market value)
- Huron Ridge LP v. Ypsilanti Twp., 275 Mich App 23 (assessments must reflect arm’s-length market price)
- Pontiac Country Club v. Waterford Twp., 299 Mich App 427 (MTT must determine true cash value using best approach)
- Brunt Assoc., Inc. v. Dep’t of Treasury, 318 Mich App 449 (substantial-evidence standard explained)
- Lyle Schmidt Farms, LLC v. Mendon Twp., 315 Mich App 824 (taxable-value capping and uncapping rules after transfer)