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Keywords

zoning

plaintiffzoning

Related Cases

Kensington Hills Development Co. v. Milford Tp., 10 Mich.App. 368, 159 N.W.2d 330

Facts

The case involved a 36.47-acre tract of land in southeastern Michigan, currently zoned for one-family residential development, despite its location at a busy intersection with commercial zoning nearby. The property had been assessed at $105,720 after a reappraisal, which included a separate valuation for a 300-foot strip along the highway based on its potential commercial use. The property owners contested the assessment, arguing it was based on an illegal use since the land was zoned residential.

The property in question is a 36.47-acre tract located on a busy intersection in an expanding southeastern Michigan community. Presently the entire acreage is zoned only for one-family residential development, although commercial zoning and development abounds along the intersecting roads.

Issue

Whether the assessment of the residentially zoned property was erroneous due to its valuation based on potential commercial use, and whether an assessment rate exceeding 50% was valid.

Also to be considered is the question of whether an assessment rate of more than 50% On a specific piece of property is valid (a rate of 53.4% Being approved by the tax commission when it reduced the evaluation from $105,720 to $99,005 but left the assessment at $52,800), where an established ‘margin of error’ local system of valuation resulted in an average assessment level of 50%.

Rule

Zoning restrictions must be considered in property assessments, and it is erroneous to assess non-commercial property based on its potential for commercial use without evidence of future rezoning.

Zoning law does not require a specific parcel to be zoned in accordance with its most lucrative possible use, Biske v. City of Troy (1967), 6 Mich.App. 546, 149 N.W.2d 899, and the ultimate rezoning of highway frontage land is highly conjectural.

Analysis

The court found that the appraiser's reliance on the potential commercial value of the property was inappropriate, as there was no evidence that the property would be rezoned. The court emphasized that zoning laws do not require properties to be assessed based on their most lucrative potential use, and that the assessment must reflect the current zoning status.

It is clear that the assessment was made for a value that could only be predicated upon the land's potential commercial usefulness.

Conclusion

The court reversed the State Tax Commission's assessment and remanded the case for a proper evaluation that complies with the constitutional limit of 50% of the appraisal value.

It is ordered that this matter be remanded to the State tax commission with instructions that this residentially zoned property be appraised and be assessed at nor more than 50% Of the appraisal, all consistent with this opinion.

Who won?

The property owners prevailed because the court found that the assessment was based on an incorrect principle of valuation that disregarded the existing zoning restrictions.

The plaintiff maintained its consistently held argument that the assessed value was improper, as it set a value for the property based on an illegal use.

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Related Cases

Ryder Truck Rental, Inc. v. Bryant, 170 So.2d 822

Amelang v. Harris County Appraisal District, 695 S.W.3d 348

Holy Spirit Association for the Unification of World Christianity v. Tax Commission of City of New, 55 N.Y.2d 823, 432 N.E.2d 140, 447 N.Y.S.2d 438 (Mem)

Western Maryland Railroad, Land & Imp. Co. of Baltimore City v. Goodwin, 77 Md. 271, 26 A. 319

Cincinnati, P., B.S. & P. Packet Co. v. Catlettsburg, 105 U.S. 559, 15 Otto 559, 1881 WL 19755, 26 L.Ed. 1169