State Supreme Court says tax breaks OK for for-profit Michigan schools

KENTWOOD, Mich. (AP) — Private schools that operate for a profit can qualify for certain tax exemptions under Michigan law.

The Michigan Supreme Court unanimously ruled in favor of the owner of Sanford-Brown College, a school that provided medical training in Kentwood, near Grand Rapids.

Kentwood and the state Tax Tribunal had denied a tax exemption for personal property, saying the school didn’t qualify because of its for-profit status. But the Michigan appeals court and the Supreme Court say that was the wrong interpretation of law.

In a 6-0 decision Monday, the Supreme Court said the law is clear: Institutions that are educational in nature can qualify for the tax exemption. Local governments around the state now fear a drop
in tax revenue.

Sanford-Brown College is no longer open in Kentwood.

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