Business & Economy

Local governments seek help to regain big box tax revenue

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By CHAO YAN
Capital News Service
LANSING — Local governments continue to fight recent changes in valuing commercial properties that they say have cost them $100 million in lost tax revenue since 2013. The problem, according to local officials and some lawmakers, is that the state’s Tax Tribunal is using methods to assess “big-box” retailers like Target and Menard’s based on sales of similar, vacant properties, often called “dark stores,” whose true value is not reflected. That’s a shift from evaluating a store’s tax value based on more complete factors such as the cost of constructing the building and the amount of income it generates. Now, big retailers are appealing assessments and winning big tax breaks across the state. Rep. David Maturen, R-Vicksburg, and dozens of co-sponsors are again pushing to solve the issue by insisting that the tribunal take more information into account when reviewing assessment appeals for any commercial property.

Government

Townships appeal tax breaks for big box retailers

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By ASHLEY WEIGEL
Capital News Service
LANSING — The battle against a property tax advantage for big box retailers has been taken to the Michigan Court of Appeals. Large retailers such as Meijer, Target and Best Buy can appeal to the Michigan Tax Tribunal to have their properties assessed at the “true cash value” which usually results in lower property taxes. The communities with big box stores lose tax revenue. “True cash value” is defined by the tax tribunal as the “fair market value or the usual selling price of property.”

Tax tribunal decsions in favor of a Home Depot in Breitung Township and a Lowe’s in Marquette Township were recently fought in the Court of Appeals. Attorney Stacy Hissong represented both townships in the appeal.