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154062 - Menard, Inc v City of Escanaba

Menard, Inc.,
 
John D. Pirich
 
Petitioner-Appellant,
 
v
(Appeal from Ct of Appeals)
 
 
(Tax Tribunal)
 
City of Escanaba,
 
Jack L. Van Coevering
 
Respondent-Appellee.
 

Summary

Menard owns a freestanding “big box” retail store in the City of Escanaba. In determining the property’s “true cash value” for purposes of property tax assessment, the city valued the property at about $8 million, based on a cost approach. Menard challenged the assessment and presented an expert appraiser who valued the property at about $3.3 million, based largely on a sales-comparison approach. The Michigan Tax Tribunal (MTT) rejected the city’s valuation and accepted Menard’s valuation with minor adjustments. The Court of Appeals reversed and remanded, holding that there were flaws in the valuation approaches used by both parties, and that the MTT on remand must make a new determination of value after the parties are allowed to present additional evidence. The Supreme Court has directed oral argument to address whether the Court of Appeals exceeded its limited appellate review of a decision of the MTT, and, if so, whether the MTT may utilize a valuation approach similar to that recognized in Clark Equipment Company v Leoni Twp, 113 Mich App 778 (1982).