Although Orion Township trustees wanted to know if a July Board of Review could consider resolving a dispute over tax exemption with the Gingellville Community Center, the center’s attorney said at this time they would prefer to see their dispute through at the state level.
The Lake Orion Review reported recently that the center, located on Waldon Road, had learned in March that they were being assessed for property tax from Orion Township, although the center said they had tax exemption status as a 501(c)(3) organization.
A March Board of Review denied an appeal from the center, who received a letter of assessment from the township. Its next step will be to take its appeal before the Michigan Tax Tribunal sometime in June.
According to clerk Jill Bastian, the issue was being brought before the board as an agenda item on May 3 because of some comments that were made at the previous board meeting.
‘I understand there is a process to be followed…with some of the comments made, I’m not sure that process was followed,? she added.
Bastian said the board could discuss possible ways to resolve the issue, or simply receive and file the agenda item.
‘I asked if there were any questions about the process, and I got no responses from anyone,? said supervisor Jerry Dywasuk.
Trustee Richard Tomczak wondered if directing the supervisor, as chief assessor for the township, to make a correction at the July Board of Review, returning the center to its tax exempt status, would be an option.
Tax attorney Stephanie (Simon) Morita, of the township’s attorney firm, said that would not be possible, because the March and July Boards of Review each have different functions by statute.
‘March looks at tax exemptions…the only things considered in July would involve mutual mistakes of fact, or to correct clerical errors,? she said.
‘So in July, they can correct something if both partners agree it’s incorrect,? said Tomczak.
Morita said that would not pertain to a question of tax exemption, but rather a figure that was incorrect.
‘In 1997 the same issue came up because by mistake, the pieces of paper from the title company went to the opposite people,? said Bastian. ‘The board of review is to represent the property owner, not the township.?
Morita said that would still not be considered a mutual mistake of fact. ‘Proving a mutual mistake of fact is one of the most difficult things you can do,? she added..
Bastian said paperwork held by the center clearly states it’s a 501(c)(3).
‘I’m arguing about the process,? she said.
‘Is there absolutely no gray area in the middle(with the July Board of Review)?,? asked trustee Michael Gingell.
‘Through the proper appeal process, but not the next board of review,? Morita said.
The board asked Morita to submit in writing to the township the reasons why the issue could not be considered by the next board of review, as well as what the township could do as part of the appeals process if it feel it was in error.
‘I know the burden of proof is ours,? said Lillian Hutchison, a Gingellville Community Center board member. ‘Maybe we could get something in writing saying we don’t owe…we have to spend a lot of money on lawyers. We did try to talk to the (March) Board of Review, they said they didn’t know anything about it.?
‘Now it’s up to them,? said township assessor John Attwell. ‘If they feel strongly enough, they can prove to the tax tribunal (they are not subject to property tax). The burden of proof is on them.?
Mark Crane, attorney for the center, said the better process for the center at this time would be to go to the tax tribunal.
‘The fact something needs to be filed in Lansing doesn’t mean we have to go through a big, long mess,? he added. ‘This may be able to be settled relatively quickly. But we do appreciate the township’s efforts.?
‘Do not pin your hopes on this board,? Tomczak said. ‘There’s a process you have to go through…but it’s good for us to have information.?