In a press release, state Rep. Sara Cambensy of Marquette said Enyart has been instrumental in holding up efforts to abolish the “dark store” loophole.

“The reappointment of Ms. Enyart to the tax tribunal by our governor is a disastrous decision for local units of government in Michigan,” she said. “Her reappointment guarantees municipalities will lose big box tax appeals in the future, as Ms. Enyart decided the recent Menards v. City of Escanaba case.”

The tribunal issued a ruling in the long-running Menards dispute in May. It required the city to reduce the taxable value of the store and reimburse Menards for previous years’ taxes — a decision the city plans to appeal despite only modest success during its already costly court battle.

Escanaba in 2012 placed a taxable value of $4.3 million on the Menards store, which the city says cost $9 million to $10 million to build. After the initial appeal by Menards, the tribunal lowered the taxable value to $1.6 million.

VICTORIA ENYART

Following a round of court appeals, the Michigan Supreme Court sent the case back to the tribunal. Its final opinion sets the taxable value at $2.5 million, up from the $1.935 million figure sought by Menards.

According to Cambensy, local property assessors are directed to value a property to its “highest and best” use. But under the dark store method, a store can be valued as though it were vacant or “dark,” because stores argue their building design cannot be used by similar stores and therefore cannot be easily resold.

This practice of significantly lowering assessments has been exceptionally harmful for Upper Peninsula communities, Cambensy said.

“One large dark store tax tribunal case can take tens of thousands of dollars from our cities, townships, counties, schools, libraries and special millages,” she said. “When they do, our small businesses and individuals either have to be taxed more, or local services like fire, police, teachers and library hours have to be cut. Enough is enough. It’s time for all elected officials to stand up and do the right thing and be held accountable.”

Whitmer, a Democrat, on Friday announced the reappointment of Enyart to represent certified level IV assessors on the tribunal for a term expiring June 30, 2024. Enyart, of Jackson, is a level IV master assessing officer and certified general real estate appraiser. She previously served as equalization director for Jackson County and city assessor for the cities of Mount Pleasant and Ann Arbor. She has 15 years of experience on the panel, having been appointed by three other governors.

The governor also announced Friday the tribunal appointment of Patricia L. Halm, an East Lansing attorney representing members at large. Halm is a previous member who was replaced in 2011 during the administration of Republican Gov. Rick Snyder.

She will succeed Michelle Lange, who has resigned after being appointed by Snyder in December 2018 to a term that was to expire June 30, 2022. Halm previously served as policy counsel for the Senate Democratic Caucus, attorney for the city of Midland, and an economist with the U.S. Department of Labor.

The tribunal is an administrative court that hears tax appeals for all Michigan taxes, although most of the appeals involve property taxes. It consists of seven members appointed by the governor — with the advice and consent of the senate — for terms of four years.

Cambensy wants local officials across the state to call Whitmer’s office and ask her to rescind Enyart’s appointment. She also asks constituents to contact state Sen. Ed McBroom, R-Vulcan, to ask for a no vote on Enyart’s appointment in the Advice and Consent Committee.

“I’m calling on my U.P. colleague to stop this foolish appointment from going forward and stand up for our cities, townships and counties who are reeling from the big box store tax revenue losses,” she said.

State Rep. Beau LaFave, R-Iron Mountain, last year introduced House Bill 4025, which seeks to eliminate the dark store loophole. The bill, with Cambensy and Rep. Greg Markkanen, R-Hancock, as co-sponsors, has languished in the Local Government and Municipal Finance Committee since March 2019.

In July 2019, LaFave informed the Iron Mountain City Council that committee chairman Rep. James Lower, R-Greenville, was blocking the bill. Meanwhile, representatives of the Michigan Chamber of Commerce and the Michigan Retailers Association also have opposed the legislation.

Earlier attempts at reform have failed as well. In 2016, a bill that passed the House with overwhelming support died in the Senate’s finance committee without a hearing.

In preparing a city budget in May 2019, Iron Mountain City Manager Jordan Stanchina estimated that $14.5 million of taxable value had been lost in the previous two years as the result of tribunal appeals, reducing general fund revenues by about $250,000.

Earlier this year, the city reached a settlement with Wal-Mart Stores Inc. that reduced the taxable value of its supercenter on South Stephenson Avenue by about $730,000, or 14%. Tonight, the city council will discuss a new appeal from Flagstar Bank, 1805 S. Stephenson Ave., which seeks to have its taxable value lowered from $840,200 to $350,000.