In Michigan's Adventure, Inc., et al. v. Dalton Township, et al., Michigan Court of Appeals, Docket Numbers 283770 and 283869, January 14, 2010 the Court of Appeals ruled Michigan Tax Tribunal, and not the circuit court, had exclusive jurisdiction to decide whether the special assessments at issue were properly imposed. The property owners claimed that the special assessments to improve a sewer system far exceeded any benefit conferred by that sewer system on the properties against which the assessments were made; that their constitutional rights were violated in a number of ways; and that the township failed to follow proper procedures under the Township Public Improvement Act.

Although the Tax Tribunal has exclusive jurisdiction over assessment and tax matters, the Headlee Amendment and its enabling legislation specifically grants the court jurisdiction over Headlee Amendment challenges against the imposition of a “tax.”  However, neither the Headlee Amendment nor the statute extend jurisdiction to special assessment disputes and, generally, special assessments are not taxes for the purposes of constitutional tax limitations.  Despite the property owners' claims that the case involved the imposition of a “disguised tax,” it is appropriate for the Tax Tribunal to initially consider the taxpayer's claim of an alleged violation of the Headlee Amendment in the context of their challenge to the special assessments.  Any decision of the Tax Tribunal will be subject to judicial review on appeal.