MI HR0133

Urges the Governor and State Tax Commission to conduct a statewide impact study on the "dark store" tax valuation method used by large retailers to challenge property tax assessments.

Large retailers use the "dark store" method by arguing that vacant big box outlets are comparable properties, claiming their facilities are functionally obsolete and warrant lower assessments based on vacant property sales.

Retailers place deed restrictions on properties to limit future use and prevent competitor ownership, artificially lowering property values and contributing to the "dark store" argument.

Big box retailers are retroactively lowering assessments and extracting refunds from local governments for overpaid taxes up to three years prior, causing significant fiscal impacts to communities like Marquette Township which paid nearly $756,000 to Lowe's.

Michigan Tax Tribunal estimates "dark store" tax refunds at approximately $73.3 million for 2013-2015, with Ottawa County experiencing a $14.8 million decline in large retail property assessments and the Michigan Association of County Treasurers reporting a $47 million overall decline in property tax revenue.