Big Box Retailers and the "Dark Store Loophole"
Tuesday, January 3rd, 2017 -- 8:01 AM
(AP) -Big-box retailers are suing some Wisconsin cities over the stores' property taxes with a relatively new legal maneuver that critics call the "dark store loophole."Retailers argue their businesses should pay the same tax rate as a vacant store down the block. The litigants have successfully argued in court that there should be no tax difference between their thriving business and the shuttered retailer because state statutes don't make the distinction.
USA Today Network-Wisconsin reports the Wisconsin Department of Revenue requires that tax assessments account for the fair market value of a property -- both the value of the building and its location. Opponents say that has caused municipalities to raise residential taxes to make up the difference. Menards, Lowe's, Target, Walgreens and other retailers have legally challenged their tax assessments.
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