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Frank A. Douglass Insurance Agency

"Dark Store" Ruling Overturned

The original story can be found on the ABC-10 website.

“Reversed and remanded.”

Those are the words of the Michigan Court of Appeals in their decision to overturn a ruling by the Michigan Tax Tribunal in the case of Menard, Incorporated versus the City of Escanaba.

It’s being hailed as a victory in the battle against so-called “Dark Store” tactics used by some big box stores.

The Court of Appeals said the tribunal made an error of law in its decision to side with Menards on a challenge against the city’s tax assessment.

The tribunal agreed with Menards’s use of a sales-comparison approach to determining the property’s true cash value.

The assessor for Menards also used comparable properties that had deed restrictions — something the location in Escanaba does not have — in making that determination.

According to the Court’s ruling, these decisions resulted in an assessment that was nearly $5 million lower for 2014 alone compared to the city’s estimate.

The case will be reconsidered by the tribunal in light of the Court’s decision.

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