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U.S. NEWS Monday 20 March 2017
Big box stores gird for battle with Wisconsin cities

stores including Menards,
Lowe’s and ShopKo have
filed more than 20 lawsuits
against Wisconsin munici-
palities in the past year
challenging their property
assessments.
In one, Menards success-
fully argued last year that
the value of its store in Fond
du Lac assessed by the city
at $9.2 million should be
no more than $5.2 million.
A similar lawsuit from Tar-
get argues that Fond du
Lac should reduce its taxes
on the retailer by about a
third.The dilemma for small
cities is that the cost of de-
Reusable shopping bags are offered for sale at a Wal-Mart Neighborhood Market, in the China- fending lawsuits can equal
town district of Los Angeles. A battle pitting big-box retail giants including Menards and Wal-Mart or exceed the amount of
against Wisconsin towns and cities is headed to the Legislature. property tax revenue at
(AP Photo/Nick Ut) play, so they are more in-
SCOTT BAUER of commerce and deep- the law “could have long- clined to settle than fight it,
Associated Press pocketed retail giants that term unintended conse- said Deschane, who’s with
MADISON, Wis. (AP) — A stand to lose millions from a quences” affecting how all the League of Municipali-
battle pitting big-box retail change in current practice. property is valued.Big box ties. q
giants including Menards Wisconsin Department of
and Wal-Mart against Wis- Revenue rules require that
consin towns and cities is assessments be based on
headed to the Legislature. the fair market value of a
Republican-backed pro- property. The stores argue
posals, written in conjunc- that the value of the under-
tion with the League of Wis- lying real estate should be
consin Municipalities, are determined by looking at
designed to close the so- comparable building sales,
called dark store loophole prices that usually fall far
and increase how much below the assessment of
the mega-retailers pay lo- an operating store.
cal communities in prop- Assessing the building as if it
erty taxes. were empty has long been
The bills come in reaction the standard in Wisconsin
to court rulings in Wiscon- for determining its value,
sin and nearby Midwestern said Don Millis, a Madison
states — starting in Michi- attorney who has repre-
gan — that have helped sented Target and other
the retail giants lower the retailers in assessment chal-
value placed on their stores lenges. Millis is also lobby-
for levying property taxes. ing for the Wisconsin Manu-
The retailers have success- facturers and Commerce
fully challenged their tax against changes to the
assessments in communi- law.“You value the sticks,
ties across Wisconsin, and bricks and mud,” Millis said.
the Midwest, by arguing Cities have been incor-
they are overtaxed and rectly assessing the prop-
should pay the same rate erty based on the potential
as a store that is closed lease value, he said.
and vacant. “We don’t think they’re be-
That results in a shift of the ing undervalued,” he said.
property tax burden to “We think assessors are be-
smaller retail stores and ing overly aggressive.”
property owners, said Jerry But Republican state Sen.
Deschane, executive di- Duey Stroebel, who plans
rector of the League of Mu- to introduce a bill next
nicipalities. month addressing the is-
“We just think that’s funda- sue, said the potential
mentally unfair,” he said. lease value of the prop-
“The bottom line with the erty should be considered
property tax is it has to be when valuing it for tax pur-
uniform.” poses. That is what the bill
The cities will have to over- he and others are work-
come opposition from the ing on will do, he said.Mil-
powerful state chamber lis warned that changing