At a recent meeting, the Marquette County Board voted unanimously to allow its chairman, Gerald Corkin to enter into an agreement with the city of Marquette and the Marquette Alger Regional Education Service Agency to finance legal costs incurred in defending a challenge by We Energies to the utility’s personal property tax assessment for the Presque Isle Power Plant.

We applaud the county board for again recognizing the potentially devastating and far-reaching negative impact some recent tax tribunal decisions may have on the local tax revenue stream local governments rely upon.

Previously, the county was the only entity to contribute financially to the legal defense of Marquette and Breitung townships in their challenge to a state tax tribunal decision in favor of big box retail outlet challenges to tax valuations.

The decision costs the townships many thousands of dollars and several additional businesses, including and beyond big box outlets, have since applied for lower assessments using a so-called “dark stores” tax valuation method, which values the newly-built, occupied and operating stores as vacant.

The county contributed $12,000 to the townships, which fought the decision and are now hoping their case will be heard before the Michigan Supreme Court. The Michigan Court of Appeals affirmed the tax tribunal decision in April.

Regarding We Energies, under the agreement involving the city and MARESA and the county, the parties would agree to share in the legal defense expenses incurred in battling We Energies in its bid before the Michigan Tax Tribunal to have its tax assessment reduced for the Presque Isle Power Plant.

Under the agreement – which must be approved by all three entities – the city would pay 63.8 percent; county 28 percent and 8.2 percent for MARESA.

We Energies recently filed a petition appealing its property tax valuation for the power plant.

Attorney Jack Van Coevering of the Grand Rapids-based law firm of Bloom Sluggett Morgan, representing the city of Marquette, said We Energies is seeking a $148 million reduction in the true cash value for the plant. Van Coevering said the true cash value on the tax roll is $210 million, which the utility wants to reduce to $61 million.

Brian Manthey, senior communications specialist for We Energies, said the petition filing marks the first time the company has contested the value of the plant for tax purposes.

“The recent change in our customer demand, predominantly due to the decision by the Tilden and Empire mines to switch electricity providers, has changed the economics of the plant,” Manthey said. “Following our unsuccessful efforts to sell the plant and our request to retire it, we believe that the estimated value of the facility for real estate purposes is now much less than it had been in the past.”

While we understand the value of the plant may have diminished, especially given the uncertain future of the nation’s coal-fired power plants, we applaud the county, the city and MARESA for trying to defend the tax-generated revenue stream, which is vitally important to local government operations.

Hats off to the county board for not once, but twice now, financially stepping up to the plate – along with the city, the townships and MARESA – in defense of its constituents, their well-being and their quality of life.