Detroit Bankruptcy Judge Urged Not to Halt Tax Appeals

Detroit’s $18 billion bankruptcy shouldn’t halt efforts by property owners to lower their taxes, a company that advises them said in a court filing seeking an exemption from federal court rules.

Michigan Property Tax Relief LLC filed a motion asking the judge overseeing the bankruptcy to let property owners file tax appeals. The company has several dozen clients that have been blocked by the Michigan Tax Tribunal from appealing their tax bills because of the bankruptcy, the company said in a court filing.

The company’s “clients desire to simply adjudicate the amount of their tax liability,” Michigan Property Tax Relief said in court papers filed today. “They are not seeking to file any collection actions or pursue any tax refunds at this time.”

Lawsuits and other legal actions against the city were automatically halted when Detroit filed the biggest U.S. municipal bankruptcy earlier this month. The company asked U.S. Bankruptcy Judge Steven Rhodes to allow the property tax appeals to proceed.

The case is City of Detroit, 13-bk-53846, U.S. Bankruptcy Court, Eastern District of Michigan (Detroit).

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