Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...
By Ryan Prete
The MGM Grand Detroit, LLC can seek a refund of property taxes after the Michigan Court of Appeals ruled that it can bring a claim challenging the City of Detroit’s assessment of the casino ( MGM Grand Detroit, LLC v. City of Detroit , 2017 BL 294876, Mich. Ct. App., No. 332000, 8/22/17 ).
In an August 22 opinion, a three-judge panel reversed the Michigan Tax Tribunal’s judgment granting summary disposition in favor of Detroit.
MGM challenged the city’s assessment, alleging that a uniform method of assessment wasn’t used for all three casinos located in Detroit, including MGM’s casino. According to the opinion, MGM alleged that both it and the city assessor believed that a uniform method was used. However, MGM “noted a marked disparity in its assessment compared with the other two Detroit casinos” and filed a petition claiming that a “mutual mistake of fact” resulted in an overpayment of property taxes for the 2012-2014 tax years.
The Tax Tribunal ruled that uniformity of MGM’s property assessment was a legal issue, not relating to a mutual mistake of fact, and found the petition was untimely filed. On appeal, the Court of Appeals agreed with MGM’s assertion that the tribunal erred in finding that the casino had pled a mistake of law rather than a mutual mistake of fact.
“MGM asserted that the ‘mutual mistake’ was the belief by it and the assessor that the 2012-2014 assessments for all three casinos would be uniform, and this ‘mutual mistake’ hinges upon the factual question of whether the assessment of its property was done in a way that was uniform with the other two Detroit casinos’ assessments,” according to the opinion. “Keeping in mind that a (C)(8) motion is to be decided on the basis of the pleadings alone and that Michigan is a notice pleading state, we are satisfied that MGM set forth a claim under MCL 211.53a.”
The court found MGM’s assertions qualified as allegations of a mutual mistake of fact sufficient to survive summary disposition and remanded to the Tax Tribunal for further proceedings.
MGM Resorts International operates casinos all over the globe and holds a market cap of $18.1 billion.
To contact the reporter on this story: Ryan Prete in Washington at email@example.com
To contact the editor responsible for this story: Jennifer McLoughlin at firstname.lastname@example.org
Text of the opinion is at http://src.bna.com/rU2.
Copyright © 2017 Tax Management Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)