Foley & Lardner LLP partner Lynn Gandhi assessed a Michigan tax case in the Law360 article, “Mich. Panel Revives Hangar’s Property Tax Challenge.”
Discussing a recent ruling by the Michigan Court of Appeals which said the state should have required a municipality to prove that a tax statute applied to a company leasing an aircraft hangar, Gandhi noted the decision indicates that governments should also bear the burden of proofs in disputes over property-based taxes.
“I would interpret that to apply to the general imposition of taxes under the General Property Tax Act” instead of just the specific lessee-user tax statute at issue in the case, Gandhi continued, noting that Michigan precedent has long established that the government must specify its taxing power in disputes over imposition statutes under the Michigan Revenue Act, which does not levy property taxes.
Gandhi highlighted that the appellate court’s conclusion highlighted the potential issues taxpayers can face in a tribunal setting, as not every member is required to be an attorney.
“In general, there are structural challenges at the tribunal based on its composition,” she added.
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