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Old 10-01-2013, 08:42 PM
 
4 posts, read 8,497 times
Reputation: 10

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I'm wondering whether it is possible to sue a city in Michigan in a Utah court. I would like to do so for two reasons: First, it presents a hardship to me to file the case in Michigan since I do not live there and have no cheap or easy way of traveling there. Second, the state, county and city government all have an interest in this case. Therefore, I don't believe they can fairly judge the matter.

Here are the basics:

I own a home in Marshall, Michigan which I am billed for taxes on by the city every six months. Recently, I moved. After I had moved, I corresponded with the state of Michigan and also with Calhoun County about the primary residency exemption because they wanted to remove it. As a result, both the state and the county have my current address, and I have mailings from both of them from earlier this year which prove this.

However, I didn't realize that the city would be a different situation. They still had my old address and, consequently, I never received the tax bill they sent out at the beginning of August. I have since paid the tax bill and the penalty. I've spoken to the city manager about it, and he says there is nothing he can do because the bill was never returned which means it would have been delivered and, he implied, that I would therefore have received it.

Meanwhile, they want to sock me with an extra $100 penalty for paying the taxes late as a result of not getting the bill on time. I feel strongly that I shouldn't have to pay this amount because it was a simple mistake – and not mine. Plus I already pay 47% of the rental income I receive from this house in property taxes. That does not include state and federal income tax which brings the amount I pay in taxes on the income generated by my property to somewhere around 65%.

Another side question: I am currently on unemployment, having lost my job in April of this year. I'm wondering whether the state of Utah would have an interest in this case seeing that it is state benefits that are going to pay this penalty. I know, it seems like a long shot. But I'm just trying to cover all my bases.

Thanks in advance for any information or advice you can offer,
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Old 10-01-2013, 11:11 PM
 
Location: Inland Empire, Calif
2,884 posts, read 5,642,077 times
Reputation: 2803
Doesn't matter who you sue, it has to be done where the damage was done. You can't sue someone out of state and expect them to come to you. Life isn't that easy.
I live in So Calif and do business in Oregon. I have had several law suits against people in Oregon, and had to travel there to pursue the suite. Wouldn't it be wonderful if I could sue here and have hem travel to me. That will not happen.
For a tax matter, you would have to appear at the county courthouse for the county/city involved, after getting an appointment to protest the tax. Call on the phone and try to find out how to proceed. Fighting the government is never easy. Be nice, try to get them on your side. They are bigger than you and making them mad won't help your case.
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Old 10-01-2013, 11:17 PM
 
33,016 posts, read 27,464,007 times
Reputation: 9074
Quote:
Originally Posted by silentq View Post
I'm wondering whether it is possible to sue a city in Michigan in a Utah court. I would like to do so for two reasons: First, it presents a hardship to me to file the case in Michigan since I do not live there and have no cheap or easy way of traveling there. Second, the state, county and city government all have an interest in this case. Therefore, I don't believe they can fairly judge the matter.

Here are the basics:

I own a home in Marshall, Michigan which I am billed for taxes on by the city every six months. Recently, I moved. After I had moved, I corresponded with the state of Michigan and also with Calhoun County about the primary residency exemption because they wanted to remove it. As a result, both the state and the county have my current address, and I have mailings from both of them from earlier this year which prove this.

However, I didn't realize that the city would be a different situation. They still had my old address and, consequently, I never received the tax bill they sent out at the beginning of August. I have since paid the tax bill and the penalty. I've spoken to the city manager about it, and he says there is nothing he can do because the bill was never returned which means it would have been delivered and, he implied, that I would therefore have received it.

Meanwhile, they want to sock me with an extra $100 penalty for paying the taxes late as a result of not getting the bill on time. I feel strongly that I shouldn't have to pay this amount because it was a simple mistake – and not mine. Plus I already pay 47% of the rental income I receive from this house in property taxes. That does not include state and federal income tax which brings the amount I pay in taxes on the income generated by my property to somewhere around 65%.

Another side question: I am currently on unemployment, having lost my job in April of this year. I'm wondering whether the state of Utah would have an interest in this case seeing that it is state benefits that are going to pay this penalty. I know, it seems like a long shot. But I'm just trying to cover all my bases.

Thanks in advance for any information or advice you can offer,

Ouch. States and cities usually write their laws to create a rebuttable presumption that a property owner was properly notified when they send tax statements by first class mail - and returned mail qualifies as a rebuttal. My first guess is that your tenant received the tax bill and lost/misplaced/discarded it.

You should be able to use 'depreciation' as one of your rental expenses to reduce your taxable rental income to a very low number, 47% of rental income going to property taxes is awfully high (I lived in a rental where 40% of the rent went to taxes, but usually it's 20-30 percent when the rent is in the mainstream - perhaps your rent is well below market.

BTW the homestead exemption is relevant only to your school district taxes, at least the city isn't clobbering you there.

I think you should post this on the Michigan forum as it's likely you'll get a more useful reply there.

There might be a local hardship deferral available if you're unemployed but I think you'll have to pay the $100 eventually.

I think you'd have to file the suit in Calhoun County where the property is located, which takes it out of the realm of feasibility. And yes, the city would have a huge home field advantage with the court.
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Old 10-01-2013, 11:22 PM
 
33,016 posts, read 27,464,007 times
Reputation: 9074
Quote:
Originally Posted by Nayabone View Post
Doesn't matter who you sue, it has to be done where the damage was done. You can't sue someone out of state and expect them to come to you. Life isn't that easy.
I live in So Calif and do business in Oregon. I have had several law suits against people in Oregon, and had to travel there to pursue the suite. Wouldn't it be wonderful if I could sue here and have hem travel to me. That will not happen.
For a tax matter, you would have to appear at the county courthouse for the county/city involved, after getting an appointment to protest the tax. Call on the phone and try to find out how to proceed. Fighting the government is never easy. Be nice, try to get them on your side. They are bigger than you and making them mad won't help your case.

In Michigan, there is a local Board of Review that holds annual meetings (often more than one meeting, but all clustered around property tax time), so a property owner would file a protest with that body.

But I don't think late fees are subject to review.
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