861 N.W.2d 347
Mich. Ct. App.2014Background
- Family Fare, LLC leases space in a shopping center in Grand Rapids and pays 78.71% of the center’s taxes; it is a subsidiary of Spartan Stores, Inc.
- Spartan filed a petition under MCL 205.735a to challenge the city’s tax assessment of the shopping center and invoked the Tax Tribunal’s jurisdiction.
- Grand Rapids moved for summary disposition arguing petitioners were not “parties in interest” under MCL 205.735a(6) and thus the Tribunal lacked jurisdiction.
- Family Fare moved to be added as a party, asserting its leasehold (and tax-payment responsibility) made it a “party in interest.”
- The Tax Tribunal first allowed Family Fare’s inclusion but then granted the city’s motion, concluding petitioners failed to show they were a “party in interest.”
- The Court of Appeals reversed: it held that a “party in interest” under MCL 205.735a(6) includes persons/entities with a property interest (including leaseholds); Family Fare qualifies but Spartan (as parent without a property interest) does not.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a "party in interest" under MCL 205.735a(6) includes commercial leaseholders | Family Fare/Spartan: statute authorizes any person/entity with a property interest to appeal directly to the Tax Tribunal; leaseholders have property interests | City: only property owners or their agents (per GPTA board-of-review rules) qualify as "party in interest" | "Party in interest" includes persons/entities with a property interest; commercial leaseholders qualify (Family Fare qualifies; Spartan does not) |
| Whether Tax Tribunal had jurisdiction absent board-of-review protest | Petitioners: MCL 205.735a(4)/(6) permits direct appeals to Tribunal for specified classes of property by a party in interest | City: procedural scheme and GPTA limits should control, precluding non-owners | Tribunal has jurisdiction over direct appeals by parties with property interests for property classified under MCL 211.34c |
Key Cases Cited
- Wexford Medical Group v. City of Cadillac, 474 Mich 192 (standard for reviewing Tax Tribunal statutory interpretation)
- Briggs Tax Service, LLC v. Detroit Public Schools, 485 Mich 69 (standard for review of summary disposition)
- Walgreen Co. v. Macomb Twp., 280 Mich App 58 (limits on who may protest before board of review)
- Jefferson Schools v. Detroit Edison Co., 154 Mich App 390 (definition of "party in interest")
- Adams Outdoor Advertising v. City of East Lansing, 463 Mich 17 (leaseholds are interests in real property)
- Lookholder v. State Highway Commissioner, 354 Mich 28 (leasehold interests constitute property)