Page 8 — Thursday, February 29, 2024 — The Hastings Banner
Tribunal sides with
TimberCreek Ranch in tax
dispute with Sunfield Township
Molly Macleod
Copy Editor
Following a months-long legal battle, Judge
Patricia L. Halm of the Michigan Tax Tribunal
ruled on Friday that TimberCreek Ranch in
Sunfield is tax-exempt and confirmed its sta-
tus as a 501(c)(3) nonprofit organization.
While TimberCreek was deemed fully tax-ex-
empt for 2022, 2023 and moving forward, the
Tribunal declared that TimberCreek Ranch is
only partially tax-exempt for the year 2021.
Halm, who took over for now-retired Judge
Peter Kopke, also denied Sunfield Township’s
motion for a directed verdict on Friday.
TimberCreek Ranch is a private, unlicensed
facility whose mission is to help young men
between 18 and 24 learn independent living
skills. TimberCreek was previously known asSunny Crest Youth Ranch, which had a similar
mission aimed at young men between 10 and- The name and mission change took place
in December 2020 after Sunny Crest Youth
Ranch’s child-caring institution license was
revoked in May 2020. All of the boys in the
care of the ranch were placed elsewhere fol-
lowing the license revocation. A lack of proper
staffing following the COVID-19 pandemic
was cited, along with a number of state inves-
tigations at the ranch.
TimberCreek Ranch Executive Director
Kenneth Evans said he is pleased with the
decision and looks forward to the future at the
ranch.
“We are happy about the decision in this
case. We are moving forward into what the
future holds for TimberCreek Ranch. We are
truly a new organization doing wonderful work
supported by amazing people with beautiful
hearts. Our prayer is that we continue to experi-
ence healing with our surrounding communities
and that they will see us as an asset and ally,”
Evans wrote in a statement to The Banner.
The ranch filed for a tax exemption in April
2021 for seven different parcels of land that
make up its campus. The township argued that
the ranch, which now operates as a private,
unlicensed facility to help young men, did not
meet conditions qualifying it as a tax-exempt
property for the years 2021, 2022 and 2023.
Judge Kopke heard the case before his
retirement July 1, 2023. Kopke retired before
entering an opinion on the case. Jason Long
represented the ranch, which is still legally
known as Sunny Crest Youth Ranch. Donovan
Visser represented Sunfield Township.
Halm’s judgement adjusts the taxable val-
ues of the seven parcels of land for the year- The seven parcels’ taxable values for
2021 were adjusted as follows:
- Parcel 010-004-300-002-07: $5,
- Parcel 010-004-300-002-08: $4,
- Parcel 010-004-300-002-09: $5,
- Parcel 010-004-300-002-10: $5,
- Parcel 010-004-300-002-11: $1,
- Parcel 010-004-300-002-12: $6,
- Parcel 010-004-300-002-13: $22,
The ranch’s taxable values from 2022onward are $0 for all seven parcels of land.
The modified taxable values differ from the
taxable values Sunfield Township argued the
ranch should be paying. The township contend-
ed the ranch’s taxable values number in the tens
of thousands for each of the seven parcels.
Visser, the township’s lawyer, argued that
the ranch did not qualify for a tax exemption
for the three years in question.
Problems with tax exemption applications,
questions of land ownership and an organiza-
tional change at the ranch were cited by Visser.
Additionally, Visser argued that the ranch
failed to lessen the burden on the government.
Prior to the shift to TimberCreek in 2020,
authorities were called to the ranch several
times a week. Calls have dropped dramatically
since the transition.
“Michigan General Property Tax Act, in
certain circumstances – a narrow set of cir-
cumstances – allows for a nonprofit organiza-
tion to be exempted from the payment of real
estate taxes where that property is owned and
operated by the nonprofit organization for the
nonprofit’s mission,” Visser said in his open-
ing statement in May.
“The evidence is clear that there was a sin-
gle application for exemption from real estate
taxes. It contained a singular legal description.
It contained a singular permanent parcel num-
ber. That was submitted to the assessor for
2021 taxes,” Visser continued. “The assessor
denied that application, finding that the prop-
erty was not owned and operated by the non-
profit, as is required under Subsection O.
Thereafter, it was denied, and the organiza-
tional mission of the ranch dramatically
changed without any changes to the actual
underlying articles of incorporation or bylaws
of the nonprofit. No action was taken by the
board to make any modifications. What we
seem to have is a unilateral shift in what the
operation and organizational mission was.”
Visser argued there is no concrete evidence
of the ranch having any residents in December
of 2020, a necessity for qualifying for tax
exemption.
Long argued on behalf of Sunny Crest
Youth Ranch, rooting his defense of the
ranch’s tax-exempt status in MCL 205.7o.
That law states “Real or personal property
owned and occupied by a nonprofit charitable
institution while occupied by that nonprofit
charitable institution solely for the purposes
for which that nonprofit charitable institution
was incorporated is exempt from the collec-
tion of taxes under this act.”
A major point in contention in the case was
whether any residents were living at the ranch
in December 2020, when the change to Tim-
berCreek took place. Judge Halm wrote in her
opinion that even if there were no residents at
the ranch during December 2020, it still quali-
fies for a tax exemption under MCL 211.53d(2).
TimberCreek representatives testified in May
that the ranch was “ramping up” its operations
in December 2020 to better accommodate its
new demographic of residents. Judge Halm
agreed with Long that this is sufficient to qual-
ify for a tax exemption, even if only a partial
one, for the 2021 tax year.
Halm agreed with Long that while the tran-
sition from Sunny Crest to TimberCreek did
change its target population, it did not change
its status or mission as a nonprofit.
“While the age range of the group served
changed, the new age group still serves male
teens, albeit a different subset of teens,”
wrote Halm.
As for whether the ranch caused a burden
on the government, Halm wrote the township
failed to provide a “quantification of the costs
saved by a non-governmental organization
providing charitable services compared to the
costs incurred by a governmental organiza-
tion provided services,” as required by the
cited statute.
Sunfield Township can still decide to appeal
Judge Halm’s decision. Sunfield Township
Supervisor Selena Duits said the township
plans to discuss its next moves at its board
meeting on March 18. So far, no decisions
have been made. Members of the public are
invited to attend the meeting and give input.
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LARABEEJudge Patricia L. Halm of the Michigan Tax Tribunal ruled on Friday that TimberCreek
Ranch is not liable to pay Sunfield Township taxes for 2022, 2023 and future years
due to its nonprofit status. The judge modified the ranch’s taxable values for 2021.
(File photo)