ESCANABA — “Reversed and remanded.” Those are the words of the Michigan Court of Appeals in their decision to overturn a ruling by the Michigan Tax Tribunal in the case of Menard, Incorporated versus the City of Escanaba.
The Court of Appeals said the tribunal made an error of law in its decision to side with Menards on a challenge against the city’s tax assessment of the big box store. The tribunal agreed with Menards’s use of a sales-comparison approach to determining the property’s true cash value.
The assessor for Menards also used comparable properties that had deed restrictions — something the location in Escanaba does not have — in making that determination. According to the Court’s ruling, these decisions resulted in an assessment that was nearly five million dollars lower for 2014 alone compared to the city’s estimate.
The case will be reconsidered by the tribunal in light of the Court’s decision. Click here to read the Michigan Court of Appeals decision.