January 23, 2004 - The Michigan Tax Tribunal today released two property tax decisions involving the valuation of two Michigan electric cogeneration power plants - one in Filer Township in Manistee County and the other in the City of Midland in Midland County.

The Tribunal is the State’s tax court conducting trials in property tax, income tax, and business tax disputes. As a court, the Tribunal does not set tax policy and is not associated with the Michigan Department of Treasury or other tax collecting agencies. The Tribunal’s decisions are based solely on the testimony and evidence presented at trial.

“While the cases look somewhat similar on the surface, it is important to note that they were heard and decided by two different judges who were presented with very different evidence and legal arguments by the respective parties in the cases,” said Michigan Tax Tribunal Chair Jack Van Coevering.  “Both judges were faced with very complex and unique issues and did an outstanding job given the resource constraints they faced.”

The first case  -- TES Filer City Station v Township of Filer (MTT Docket No. 192808), will result in the payment of $1 million in additional taxes by the electric cogeneration power plant TES Filer City Station.

The second case -- Midland Cogeneration Venture LP v City of Midland (MTT Docket No. 242614) will result in a refund of $36 million to the Michigan Cogeneration Venture Limited Partnership.

The hearing in TES Filer City Station began September 16, 1997, and ended October 28, 1997, 22 hearing days and one month later.  The judge presiding in that case resigned from the Tribunal prior to rendering a decision and the case was reassigned to Judge Richard A. Southern, who, at the request of TES Filer City Station, reconvened the hearing so as to allow the parties the opportunity to submit limited additional evidence.  The reconvened hearing began October 28, 2002, and ended November 22, 2002, 12 hearing days and one month later.  The parties submitted their final post-hearing briefs on February 18, 2003.  Judge Southern considered over 158 exhibits and 37 six to eight hour videotapes covering the testimony of 18 witnesses in the rendering of his decision.

The hearing in Midland Cogeneration Venture LP began January 7, 2002, and ended February 12, 2003, 157 hearing days and 13 months later.  The parties submitted their final post hearing briefs on June 9, 2003.  Judge Victoria Enyart considered over 750 exhibits and 30,000 pages of hearing transcripts covering the testimony of 28 witnesses in the rendering of her decision.

             Copies of both decisions are available on the web at http://www.michigan.gov/cis/0,1607,7-154-10576_17489---,00.html. 

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