Michigan ~ Property Tax: Medical Laboratory Owned by For-Profit Entity Denied Exemption

CCH Tax Day Report

A Michigan taxpayer’s medical laboratory was not entitled to a property tax exemption because the taxpayer was a for-profit entity that failed to meet the statutory charitable institution requirements. Although the taxpayer was a wholly owned subsidiary of a nonprofit charitable institution, the tax-exempt status of the parent corporation could not be statutorily applied to the taxpayer, which was not a nonprofit entity in itself. Accordingly, the taxpayer was neither a nonprofit trust nor owned or occupied by a nonprofit charitable institution for tax purposes.

Trinity Health-Warde Lab, LLC v. Charter Township of Pittsfield, Michigan Court of Appeals, No. 328092, November 3, 2016, ¶402-137

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