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A second hearing is planned this month for legislation that aims to stop big box stores from asking the Michigan Tax Tribunal to value their property – for tax purposes — as if it were empty, or dark, arguing the layout is unique and wouldn’t be worth much if the building was sold.
The tactic is creating problems for some small governments in the Upper Peninsula.
If a store is successful in having their property reassessed as if it were dark, local governments lose out on future property tax revenue and have to repay a few years’ worth of what are now over-assessments.
State Representative Jeff Farrington, who chairs the House Tax Policy Committee, says it’s a problem – no doubt – but the so-called Dark Store issue isn’t cut and dry.
That’s because it involves multiple layers of tax law.
In fact, Farrington doesn’t think the current proposal before the committee will pass muster.
The panel held a hearing in early November and plans another hearing next week.
