MI Lawmakers Look to Close Tax "Loophole" for Big Box Stores
November 21, 2024
Nik Rajkovic / news@whmi.com
A series of bills introduced in the Michigan House would close what some call the "dark store theory," an alleged loophole when a corporation files a property tax appeal, asking for the value to be lowered to match the value of nearby empty stores.
"We believe the lost revenue is likely in excess of $2 billion," state Rep. Julie Brixie, D-Okemos, told WILX Lansing. "In every community where big box stores exist, we can point to a school or district library, that has been made to pick up the bill when a big box store shirks its responsibility."
However, the Michigan Chamber of Commerce argues there is no loophole, saying businesses should pay property tax on what their property is worth, not their businesses.
"It isn't fair to say we are going to compare this store at it's prime when it's doing its best when there's likely going to be someone else in that store for a different use," said Leah Robinson, director of legislative affairs for MCC.
The legislation, attached below, will likely be taken up in committee when the Michigan Legislature reconvenes next month.