CVS might need some Tylenol to soothe its property tax headache in Bloomington, Ind. where the Indiana Tax Court won’t prescribe a discount the retailer sought for a pharmacy’s valuation.
Dark stores are closed and vacant commercial buildings. Big-box retailers have argued that dark stores can be considered when valuing their property. Assessors and appraisers have argued that dark stores are not comparable to open and operating stores, and shouldn’t be used for property tax valuation. In this article, Fredrikson & Byron, P.A.’s Judy Engel and Lynn Linné discuss the dark stores theory and why using vacant stores in property valuation is an acceptable appraisal practice.
MISHAWAKA — St. Joseph County will refund more than $500,000 in property taxes collected from Meijer after agreeing that assessments of the chain’s Bremen Highway store here should have been lower from 2006 through 2011.
Hundreds of thousands of dollars in property taxes are at stake in a legal brawl between big-box stores and St. Joseph County.
Three Meijer and two Kohl’s stores in the county have appealed their property assessments for multiyear periods.
The retailers, faced with challenges as more people shop online, want to slash property taxes by arguing stores should be taxed the same as vacant ones, also known as dark boxes.
A battle pitting big-box retail giants including Menards and Wal-Mart against Wisconsin towns and cities is headed to the Legislature.
Republican-backed proposals, written in conjunction with the League of Wisconsin Municipalities, are designed to close the so-called dark store loophole and increase how much the mega-retailers pay local communities in property taxes.