Iip Mi 4 Llc And Livwell Michigan Llc V City Of Warren

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Automated Summary

Key Facts

LivWell owns property used for marijuana production under Michigan's MRTMA and MMFLA. They claimed a Qualified Agricultural Exemption (QAE) from school taxes in 2023. The City of Warren denied the QAE, arguing marijuana production is commercial, not agricultural. LivWell appealed to the December Board of Review, which denied the QAE, then appealed to the Tax Tribunal. The Tax Tribunal initially found jurisdiction was improperly invoked but later granted the QAE, citing misleading appeal notice language. The court vacated the Tax Tribunal's decision, ruling jurisdiction was lacking as LivWell failed to appeal to the July Board of Review per MCL 211.7ee(6).

Tax Type

School operating tax exemption under the Qualified Agricultural Exemption (QAE) for property used in marijuana production.

Issues

  • The second issue concerned the adequacy of the City's notice regarding appeal procedures. The Tax Tribunal claimed the notice was 'ineffective and misleading' because it allowed LivWell to appeal to either the July or December Board of Review. The court rejected this, finding the notice constitutionally sufficient as it clearly directed LivWell to review MCL 211.7ee, which explicitly outlined the correct appeal process. The court distinguished this case from others where due process violations occurred, such as incorrect addresses or missing deadlines.
  • The primary issue was whether the Michigan Tax Tribunal had subject-matter jurisdiction to review LivWell's appeal of a denied Qualified Agricultural Exemption (QAE). The City argued that jurisdiction was lost because LivWell failed to appeal to the July Board of Review as required by MCL 211.7ee(6). The court agreed, emphasizing that jurisdictional requirements under MCL 205.735a(5) are mandatory and cannot be waived, even if the notice was misleading.

Tax Years

2023

Holdings

  • The court held that the Michigan Tax Tribunal lacked jurisdiction to hear LivWell's appeal regarding the denial of their Qualified Agricultural Exemption (QAE) claim. The appeal was required to first be made to the July Board of Review under MCL 211.7ee(6) due to the City's summer tax levy, which LivWell failed to do. The Tax Tribunal's assertion of jurisdiction was deemed an error of law, necessitating dismissal of the case.
  • The court concluded that the City's notice to LivWell satisfied procedural due process requirements. The notice clearly stated the right to appeal and the timeframe, directing the taxpayer to review MCL 211.7ee to determine the correct Board of Review. Unlike other cases where notices were defective, this notice was deemed constitutionally adequate and not a mere gesture.

Remedies

The court vacated the Tax Tribunal's Final Opinion and Judgment, determining it lacked jurisdiction to hear the case.

Tax Issue Category

Other

Legal Principles

  • The court conducted a de novo review of the Tax Tribunal's legal interpretation of jurisdictional statutes under MCL 205.735a and MCL 211.7ee. It concluded the Tax Tribunal exceeded its authority (ultra vires) by asserting jurisdiction over a claim that failed to meet statutory prerequisites, emphasizing that jurisdictional errors must be dismissed without remand unless constitutional due process is violated.
  • The court applied the Literal Rule of statutory interpretation, emphasizing that the plain language of MCL 205.735a(5) and MCL 211.7ee(6) must be enforced as written. It held that the Tax Tribunal's jurisdiction to hear Qualified Agricultural Exemption (QAE) claims is strictly contingent on the taxpayer first appealing to the correct Board of Review (July or December) as specified by the statute, without considering extrinsic factors or ambiguities.

Precedent Name

  • Winkler v Markey Twp
  • Bluewater Nat Gas Holding, LLC
  • Wright v Genesee Co
  • Kemennu v Dep't of Treasury
  • Electronic Data Sys Corp v Flint Twp
  • Campbell v Dep't of Treasury
  • Sixarp, LLC v Byron Twp
  • New Covert Generating Co, LLC v Cover Twp
  • Geldhof Enterprises Inc v Dep't of Treasury

Cited Statute

  • General Property Tax Act, § 7ee
  • Tax Tribunal Act, § 762a
  • Tax Tribunal Act, § 735a
  • General Property Tax Act, § 53b

Judge Name

  • Korobkin
  • Maldonado
  • Murray

Passage Text

  • The notice in the instant case clearly notified LivWell of its right to appeal, as well as the timeframe for doing so.
  • The statute plainly states that 'the assessment must be protested before the board of review before the tribunal acquires jurisdiction of the dispute.'
  • The Tribunal therefore finds that Petitioner failed to properly invoke the Tribunal's jurisdiction under statute.