Sixarp LLC v. Township of Byron

CourtMichigan Supreme Court
DecidedMarch 26, 2025
Docket166190
StatusPublished

This text of Sixarp LLC v. Township of Byron (Sixarp LLC v. Township of Byron) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sixarp LLC v. Township of Byron, (Mich. 2025).

Opinion

Michigan Supreme Court Lansing, Michigan

Syllabus Chief Justice: Justices: Elizabeth T. Clement Brian K. Zahra Richard H. Bernstein Megan K. Cavanagh Elizabeth M. Welch Kyra H. Bolden Kimberly A. Thomas

This syllabus constitutes no part of the opinion of the Court but has been prepared by the Reporter of Decisions for the convenience of the reader.

SIXARP, LLC v TOWNSHIP OF BYRON

Docket No. 166190. Argued on application for leave to appeal December 4, 2024. Decided March 26, 2025.

Sixarp, LLC, doing business as Praxis Packaging Solutions, filed a petition in the Michigan Tax Tribunal against the Township of Byron, alleging that its constitutional right to due process was violated by the failure of the township’s assessor, Timothy Baker, to notify Praxis of its right to appeal the township’s decision denying its request for a tax exemption and to explain the reason for the denial. Praxis operated a manufacturing facility in the township. In February 2021, Praxis applied to the township for the eligible manufacturing personal property (EMPP) exemption under MCL 211.9m and MCL 211.9n for the 2021 tax year related to some of its manufacturing equipment. Baker denied the application on the grounds that the “qualified new personal property” or “qualified existing personal property” claimed by Praxis did not meet the definition of EMPP set forth in the statutes. The denial notice included a section titled “Notification of Taxpayers Right of Appeal,” which stated that a taxpayer could appeal a denial of the EMPP exemption before the March Board of Review and that filing a protest was “necessary” to protect the right to further appeal a dispute over an EMPP exemption in the tribunal. In February 2021, the township mailed a notice of assessment to Praxis that included an increased tentative state-equalized taxable value for the current tax year and taxable value for the previous year for its personal property. The notice of assessment also specified that taxpayers who disputed the values in the notice had to appeal before the March Board of Review, and it included the Board’s meeting times and a phone number to call to make an appointment to meet with the Board. Praxis’s agents contacted Baker regarding the details of submitting an appeal. In his communications with Praxis’s agents, Baker did not provide any deadlines for submitting an appeal or advise them of the Board’s hearing date or of the filing requirements for an appeal. Baker did advise Praxis to email him a letter appeal. Praxis’s agent sent Baker a letter appeal on March 10, 2021, but the Board had adjourned the evening of March 9, 2021, and Baker replied via email that the appeal was too late. Praxis did not appear before the March Board and the Board did not consider Praxis’s appeal. Praxis then petitioned the Tax Tribunal, and the township moved for summary disposition, arguing in part that the tribunal lacked jurisdiction because Praxis had failed to first appeal before the Board. The tribunal granted the township’s motion and dismissed Praxis’s petition for lack of jurisdiction. Praxis appealed in the Court of Appeals, which reversed and remanded to the tribunal. 348 Mich App 1 (2023). The Court of Appeals held that the township’s efforts to provide notice to Praxis did not comport with its statutory obligations under MCL 211.9m(3) or MCL 211.9n(3) and therefore deprived Praxis of due process. The Court of Appeals vested the tribunal with jurisdiction as a matter of equity to consider Praxis’s exemption claim. The township applied for leave to appeal in the Supreme Court, and in lieu of granting leave, the Court ordered oral argument on the application. 513 Mich 1052 (2024).

In a unanimous opinion by Justice CAVANAGH, the Supreme Court held:

Praxis failed to timely protest the township’s exemption denial before the March Board of Review despite receiving timely notice from the township; therefore, the Tax Tribunal did not have jurisdiction to hear Praxis’s claim.

1. Under MCL 211.9m(3) and MCL 211.9n(3), when an EMPP exemption request is denied before the first substantive meeting of the Board of Review, the denial must be appealed before the Board. If the petitioner does not prevail before the Board, the Board’s decision may be appealed by filing a petition with the tribunal. Similarly, an assessment dispute as to the valuation or exemption of property must be protested to the Board before the tribunal acquires jurisdiction. The tribunal has exclusive and original jurisdiction over the final decision of an agency related to an assessment or valuation under MCL 205.731. Under the doctrine of in pari materia, MCL 205.731 must be read together with MCL 205.735a (requiring that an assessment be protested before the Board) and MCL 211.9m(2)(c) and MCL 211.9n(2)(c) (which require that a petition be filed with the tax tribunal to appeal a denial by the Board). Thus, the tribunal could not exercise jurisdiction in this case because the township denied the exemption before the Board met, and Praxis failed to appeal the decision before the Board. Further, as the tribunal correctly noted, it had no equitable power to waive or otherwise disregard a statutory requirement or filing deadline, so it had no authority to grant Praxis’s exemption request. The Court of Appeals concluded that under Parkview Mem Ass’n v Livonia, 183 Mich App 116 (1990), the requirement to protest before the Board could be waived or excused because Praxis had received inadequate notice. However, in Parkview, although the petitioners did not protest before the Board, the Court remanded the petitioners’ claims to the tribunal because the petitioners had received the tax assessments mailed by the respondent two days after the Board had adjourned. Accordingly, the Parkview Court concluded that the late notices violated due process because they were not provided in a manner reasonably calculated to afford the petitioners notice and an opportunity to be heard. Parkview was overruled to the extent that it held that the jurisdictional requirements of MCL 205.735, including the protest requirement, are merely “procedural requirements for perfecting an appeal” in the tribunal that are not express limitations on the tribunal’s jurisdiction. The Legislature clearly mandated that the requirements for appeal in the tribunal under MCL 205.735 are jurisdictional, and the requirements of the statute may only be waived by the court if necessary to remedy a constitutional due-process violation that deprived the taxpayer of their ability to invoke the right to protest. Because Praxis did not satisfy the statutory requirements for the tribunal to exercise jurisdiction by first protesting the township’s decision before the Board, it had to demonstrate that the township deprived it of its right to constitutional due process in order to invoke the Court’s judicial power to waive the jurisdictional requirements.

2. MCL 211.9m addresses new manufacturing personal property, and MCL 211.9n addresses previously existing manufacturing personal property. Under both statutes, an assessor’s denial of an EMPP exemption must (1) be sent in writing to the person who filed the form, (2) contain a statement of the reason for the denial, and (3) advise the person that they have the right to appeal the denial before the Board under MCL 211.30 by filing a “combined document” as described by MCL 211.9m(2) and MCL 211.9n(2). There was no dispute that the written notice sent by the township to Praxis satisfied the first requirement. Regarding the second requirement, the notice stated the reason for the denial: the claimed personal property did not meet the statutory definition of EMPP under the statutes. Although Praxis argued that this reason was insufficient, the statutory language does not require more detail than Baker provided.

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Sixarp LLC v. Township of Byron, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sixarp-llc-v-township-of-byron-mich-2025.