Lyle Schmidt Farm LLC v. Township of Mendon
315 Mich. App. 824
Mich. Ct. App.2016Background
- Five parcels of vacant agricultural land in Mendon and Sherwood Townships were bought by the Wiegels in 2004; because no affidavit under MCL 211.27a(7)(o) was filed then, the parcels were uncapped for 2005 assessments.
- In 2006 the parcels were sold: Equity Trust and Lyle Schmidt Farms purchased the parcels; both purchasers timely filed affidavits asserting the parcels remained qualified agricultural property.
- In 2007 the Wiegels (who no longer owned the parcels) filed affidavits asserting the parcels had remained qualified agricultural property since 1999.
- Petitioners (current owners) sought recapping to 2004 taxable values in 2008 and again in 2014, based on the Wiegels’ 2007 affidavits; boards of review denied relief and MTT affirmed, concluding the Wiegels were not owners when they filed.
- The Court of Appeals consolidated appeals and affirmed the MTT: MCL 211.27a(8)(b) requires the affidavit to be filed by the owner at the time of filing (i.e., a current owner), so former-owner affidavits do not trigger recapping.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether MCL 211.27a(8)(b) allows a former owner to file an affidavit under MCL 211.27a(7)(o) to trigger recapping | The Wiegels’ 2007 affidavits should recapture taxable values to 2004 because the statute permits the owner who files an affidavit to cause recapping; former-owner affidavits qualify | The statute requires the owner who files the affidavit to be a current owner; the Wiegels lacked ownership when they filed and thus their affidavits do not satisfy MCL 211.27a(8)(b) | Court held statute’s plain meaning of “owner” is present tense; only current owners can file to trigger recapping, so recapping was not available based on the Wiegels’ affidavits |
Key Cases Cited
- Mt Pleasant v. State Tax Comm, 477 Mich 50 (administrative-review limits and MTT deference)
- Mich Props, LLC v. Meridian Twp, 491 Mich 518 (standard for substantial-evidence review of MTT findings)
- Koontz v. Ameritech Servs, Inc, 466 Mich 304 (use of dictionary and plain-meaning rules in statutory construction)
- Klooster v. City of Charlevoix, 488 Mich 289 (uncapping after transfer of ownership under MCL 211.27a(3))
- In re Complaint of Rovas Against SBC Mich, 482 Mich 90 (agency interpretations not binding if they conflict with plain statutory meaning)