Principal residence exemption (PRE); MCL 211.7cc & 211.7dd; Estate of Schubert v Department of Treasury; Arguments based on equitable principles; Michigan Tax Tribunal (MTT)

The court held that competent, material, and substantial evidence supported the MTT’s judgment upholding respondent’s denial of petitioner’s request for a PRE for tax years 2018-21. He contended the MTT erred in “failing to give proper weight to the evidence supporting his PRE claim.” At issue was a property referred to as the Barnes Street property. Petitioner “presented a number of affidavits purporting to show that he owned and occupied the Barnes Street property as his principal residence during tax years 2018 through 2021.” Respondent presented “documentary evidence, including LexisNexis database search results providing that petitioner’s driver’s license, vehicle registration, and voter registration identified” another property (the Columbia Highway property) “as petitioner’s principal residence. Respondent further relied upon” income tax returns from members of petitioner’s extended family (the Ks) “and the results of two additional LexisNexis database searches, each of which listed the Barnes Street property as their home address.” The MTT determined that petitioner did not “meet his burden of establishing entitlement to a PRE because he did not occupy the Barnes Street property during the tax years at issue.” Given that this “finding was supported by competent, material, and substantial documentary evidence” the court concluded it was “conclusive and should not be disturbed.” As a result of that conclusive finding, the MTT did not err in concluding petitioner was not entitled to a PRE. To the extent he suggested reversal was warranted based on “equitable principles, the MTT ‘does not have powers of equity.’” Affirmed.