Wisconsin Supreme Court Rejects Arguments From Big Box Store Regarding Property Value

Wednesday, February 22nd, 2023 -- 11:00 AM

(By Sarah Lehr, Wisconsin Public Radio) Wisconsin's Supreme Court has rejected arguments from a big box store that claimed a southern Wisconsin city had overvalued its property by millions of dollars.

According to Sarah Lehr with Wisconsin Public Radio, the unanimous decision strikes a blow to other businesses that try to shrink their property tax bills using the so-called "dark stores" theory.

After attempting to appeal its property tax assessments, Lowe's sued the city of Delavan, arguing the city had valued a home improvement store in 2016 and 2017 at nearly twice what it should have been.

But the Walworth County Circuit Court and later a Court of Appeals sided with the city, and the case made it to arguments before Wisconsin's Supreme Court this year. 

The city's assessor valued the Lowe's location, which has been operating in Delavan since 2005, at $8.9 million. But Lowe's contented it was worth only $4.6 million. The company's calculation was based in large part on the value of other Wisconsin big box stores that had long been vacant.

Jerry Deschane, who leads the League of Wisconsin Municipalities, says businesses have long exploited that theory, known as the dark stores loophole, to drive down their property tax bills.

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