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Traverse City asks Michigan Municipal League for amicus brief in airport tax-exemption appeal
Summary
The commission voted to request the Michigan Municipal League Legal Defense Fund file an amicus brief in the city's Michigan Supreme Court appeal over a Court of Appeals decision on tax-exempt status for an airport property; commissioners debated the statewide significance and reputational risk.
The Traverse City Commission voted to ask the Michigan Municipal League (MML) Legal Defense Fund to file an amicus brief supporting the city's appeal to the Michigan Supreme Court in a tax-exemption dispute involving airport property.
Why it matters: the Court of Appeals issued a published opinion that the city says improperly shifted the burden of proof to municipalities in tax-exemption cases. The city argues the default under tax law is that properties are taxable and that entities seeking an exemption should bear the burden of proving it. Traversing the case to the Supreme Court could clarify statewide law for municipalities that operate airports or similar facilities.
City Attorney (role stated during discussion) explained the city prevailed in the Michigan Tax Tribunal but lost at the Court of Appeals. The appellate decision, she and outside counsel said, reversed longstanding precedent by placing the burden on the municipality rather than on a property owner seeking exemption. The city has already sought leave to appeal to the Michigan Supreme Court; staff said that having MML file an amicus brief increases the chance the Supreme Court will accept the case because it raises a statewide issue.
Commission debate: Commissioner Shaw opposed asking MML to file the brief, saying further appeal could undermine public trust and waste resources; other commissioners argued the legal question affects many municipalities and that MML involvement shields the city from being the lone appellant on a matter of statewide consequence.
Public comment: Fred Bimber, an attorney and city resident, urged commissioners to request MML support to increase the likelihood the Supreme Court will grant leave.
Vote: Mayor Pro Tem Wilson moved the resolution and Commissioner Stanley seconded; roll call was 6 in favor, 1 opposed (Commissioner Shaw). The motion passed.
What the action does: the commission’s vote asked the city to request MML file an amicus brief in support of the city's position that the burden of proof for tax-exempt status rests with the party claiming exemption. The underlying Supreme Court decision on leave and merits will determine final statewide effect.
