Detroit property owners can file tax appeals against the city during its bankruptcy, a federal judge ruled, but they are barred from collecting refunds, Bloomberg News reported yesterday. Michigan Property Tax Relief LLC this week asked the judge overseeing Detroit’s $18 billion bankruptcy to let its clients pursue their claims. The company said that they have been blocked by the Michigan Tax Tribunal from challenging tax bills because of the bankruptcy. Michigan Property Tax Relief and its clients, however, “shall not take any action to prosecute the appeals or collect any refund of any pre-petition property tax overpayment absent further order of this court,” Judge Rhodes said in an order. The case is City of Detroit, 13-bk-53846, U.S. Bankruptcy Court, Eastern District of Michigan (Detroit).
