On 12 February 2013, the Michigan Court of Appeals decided the case of Pontiac Country Club v. Township of Waterford, which dealt with the various approaches to determine the true cash value of real property. The court noted that although the Michigan Tax Tribunal must determine the true cash value independently of the assessed value, the Tribunal can still end up with the same number as the assessed value.
The court also noted, “The Michigan Constitution provides that true cash value is necessary to determine a property’s proper tax. The Legislature has provided that ‘property shall be assessed at 50% of its true cash value[.]‘ The Legislature has defined ‘true cash value’ as ‘the usual selling price . . . that could be attained for the property at a private sale. . . .’ True cash value and fair market value are synonymous, and both are ‘the probable price that a willing buyer and a willing seller would arrive at through arms length negotiation’.”
You can find the full text of the opinion HERE.