Court Opinion

ID: 9738146
Source: CourtListenerOpinion
Date Created: 2023-08-26 19:43:28.882343+00
Date Added: 2024-06-11T07:24:03.996067
License: Public Domain

Shepherd, J.
(concurring). I agree that this case must be remanded and I accept the rationale of the majority with one exception. The majority says:
However, the one percent mortgage is the subsidy. To derive a capitalization rate based on the assumption of a one percent mortgage is to value the subsidy. The interest subsidy is an intangible asset and is not a proper subject to be taxed under Michigan’s property tax laws.
In Meadowlanes Limited Dividend Housing Ass’n v City of Holland, 156 Mich App 238; 401 NW2d 620 (1986), we remanded to the Tax Tribunal and required that it take into account the value, if any, of the mortgage interest subsidy. In Meadowlanes we expressed no opinion as to the effect of that subsidy in the particular case since that decision is to be made initially by the Tax Tribunal.
Similarly, in this case I would have the Tax Tribunal make a determination of whether the interest subsidy within the total context of the facts of this case has any impact on market value.