State Tax Commission Rejects Zeeland’s Request To Revoke Consumers Tax Break

ZEELAND (WHTC) – Consumers Energy has gained a victory over the city of Zeeland in a tax dispute. The Michigan Tax Commission Tuesday rejected a request by the city to revoke a tax break that had been granted to the utility in 2007 for its 935-megawatt power plant on Fairview Street. The City Council last fall voted to pull the abatement because it says the utility reneged on an agreement with the city by challenging an assessment of the power plant property. The city last year assessed the Consumers property at a taxable value of 260 million dollars, while the utility says the actual taxable value should be 112-point-5 million. City Manager Tim Klunder says he disagrees with the commission’s finding that it did not have authority to review the agreement with Consumers and that the city is considering its options on whether to appeal. A hearing on Consumers’ appeal of the city’s assessment has not been set.