Big-box retailer Meijer recently won a multi-year, multi-municipality tax appeal to the tune of $1.9 million at the state level, Clerk-Treasurer Michael Griffin told the council at its July 1 study session. Because of that appeal, Highland alone lost a one-time amount of $643,000 — or 39 percent of Meijer’s judgment — out of its budget.
Griffin said the town could make the argument with the Department of Local Government Finance for a shortfall appeal to restore the money. But good governance enacted by the town may mean the Department of Local Government Finance wouldn’t see the need.
“Because of the 2020 tax caps, we enacted by ordinance a mechanism to keep five months of cash reserves, but because of the Meijer appeal hit, we have no cash reserves in our debt service,” Griffin said. “We can argue hardship on the debt service point, but the DLGF could turn around and ask if we really need the money because of our reserves.
“I’d say we have a 50-50 chance of winning.”
Council President Steve Wagner, D-4th, asked if it’s possible that the Department of Local Government Finance would refund a portion of the money, to which Griffin said anything’s possible. There’s also no cost to the town nor the taxpayers to file a hardship appeal.
“I think we should go for it,” Councilman Mark Herak, D-3rd, said.
Griffin said the council won’t need to take up the matter again until August, when the budget process starts. He also said the School Town of Highland, North Township and any other municipality with a Meijer in its borders would do well to apply for hardship appeals themselves since they too were affected.
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