GEO Group Inc., owner of North Lake Correctional Facility in Lake County is contesting the 2024 assessed value of the property before the Michigan Tax Tribunal.

Lake County Administrator Tobi Lake said in an email that he was notified that GEO Group is contesting their 2024 True Cash Value/State Equalized Value and Taxable Value to the Tax Tribunal.

According to the petition to the tax tribunal, GEO Group Inc. contends that the True Cash Value assessed by the county’s Board of Review at $55,140,400 should be no more than $30,000,000; that the State Equalized Value of $27,570,200 should be $15,000,000; and the Taxable Value of $27,570,200 should be $15,000,000.

“Essentially, they are requesting to have their values — and ultimately their tax bills, cut nearly in half,” Lake said in the email. “A drop of over $25 million in true Cash value and, more importantly, $12,570,200 in Taxable Value. If they are successful with their request, the county’s property tax revenue would be cut approximately $150,000 for 2024, and basically every year thereafter.”

The petition claims the 2024 assessments are invalid for the following reasons:

• The assessment, including the SEV and taxable value exceeds the amount permitted by the Michigan Constitution and applicable statutes;

• The assessment, including SEV and taxable value is at a higher percentage of true cash value that permissible under the Michigan Constitution and applicable statutes;

• The assessment is based on the misapplication of valuation principles; and

• The assessment otherwise violates the petitioner’s rights.

Lake said if GEO Inc. is successful in the Tax Tribunal, it will not only impact the county’s tax revenue, but also the seven special millage budgets that are already set for this year, including 911 Emergency; COA Senior Citizens; Lake County Transit Authority; Lake County Library Services; Veterans Affairs; Ambulance Service and LCSO Road Patrol.

“The tax revenue for this year’s general fund 2024 budget is based on a summer levy and includes the values they are contesting,” Lake said. “The other seven special millages/budgets are already set for this year, but have a December levy, using these contested values, that will be used to fund next year’s 2025 budgets.”

Lake provided the following estimates of how each fund may be impacted:

• General Fund — $73,525;

• 911 Emergency Services — $12,302;

• COA Senior Citizens — $7,920;

• Lake County Transit Authority — $4,659;

• Lake County Library Services — $3,042;

• Veterans Affairs — $9,195;

• Sheriff’s Office Road Patrol — $36,520.

“It is important to note that this is only the estimated financial impact to the county levy of 12.570 mills,” Lake said. “Baldwin schools levy nearly twice as many mills, Webber Township approximately half, the State of Michigan approximately half, and the ISD just over a quarter. Each will have their own losses.

“It is highly unlikely that the Michigan Tax Tribunal will decide this (case) before the end of this year, therefore, if GEO is ultimately successful, not only will we receive less tax revenue, but we will have to pay back funds for 2024 and every year thereafter,” he added.

GEO Group Inc. contested their 2021 assessed values and Webber Township, along with the county, Baldwin schools and the Michigan State Attorney General’s Office fought the case, Lake said.

The county, along with the other impacted entities, fought the appeal at a cost for reassessment of around $20,000, with Webber Township paying $3,000, the county paying $5,000, the schools paying $5,000 and the Attorney General’s Office paying $7,000.

Additional legal costs were also paid by Webber Township and the Attorney General’s Office.

“Ultimately the case was settled with GEO agreeing to drop the contested values for 2021 and agreeing to values for both 2022 and 2023 of True Cash Value of $57,000,000, assessed value of $28,500,000 and taxable value of $28,500,000,” Lake said.

Lake said although it is still early in the process, he believes the entities involved will again fight the tax appeal.

“Webber Township is the local unit with responsibility to defend the case, so their attorneys will likely respond to the case,” he said.

North lake Correctional Facility was closed in September 2022, and no longer houses inmates.