COVERT, Mich. - Covert Public Schools is suing the Michigan State Tax Commission over a property tax ruling that could reduce district revenue by $2.4 million this year, according to The (St. Joseph) Herald-Palladium.

The disagreement centers on whether personal property at the New Covert Generating Plant, a power plant in Covert Township, should be classified as utility class or industrial class, according to The Herald-Palladium.

Township assessor David Jager reclassified the property as industrial earlier this year, based on a change in state law, and the state tax commission upheld his decision, The Herald-Palladium reported.

The school district made $1.1 million in spending cuts based on the resulting change in tax revenue, and Superintendent Stephanie Burrage said that more reductions may be needed depending on contract negotiations, enrollment and the outcome of the lawsuit, the Herald-Palladium reported.

SOURCE:
The (St. Joseph) Herald-Palladium, "Covert schools sue state Tax Commission," Sept. 15, 2009

FURTHER READING:
Mackinac Center for Public Policy, "A Perfect Storm: Batten Down the Hatches or Drown," July 6, 2009

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