The “Dark Store” tax loophole is a loophole currently being used by businesses all over the Upper Peninsula. The loophole currently allows businesses to cut their property taxes by as much as 2/3! These tax cuts reduce tax revenue to publicly funded programs and services in the surrounding community! Programs and services that are vital to any thriving community such as education, road and infrastructure maintenance and repair, senior services, veteran affairs, recreational facilities and more are being adversely affected! In recent years, the Michigan Tax Tribunal (MTT) has used a faulty assessing theory when determining the value of fully functional “big box” retail stores, such as Menards, Lowe’s, and Target. Under the “dark store” assessing theory, an operational store’s value is compared to other similarly sized structures—even if they are vacant, abandoned, or operating under a completely different use. These appeals have distorted Michigan’s property tax system, drastically reducing property values for these large corporations—and giving them a huge tax advantage over smaller “Main Street” businesses in their community. 

This issue is having a growing impact on your state and local governments, with fast food restaurants, auto parts stores, and national chain pharmacies now seeking the same treatment—all at the expense of local governments, residents, and other businesses in the community. 

A common-sense solution is house bill HB 5578 that would put a stop the “dark stores” loophole. Sign this petition in support of HB 5578 because it:

• Requires the MTT to consider all methods of value, including the income, sales, and cost methods.
• Creates a fair, transparent and equitable system of property assessment review.
• Requires that the MTT determine the highest and best use of property in its market.
• Enforces current law by clarifying that MTT must independently evaluate the parties’ stipulation as to any valuation method.
• Limits the use of deed restrictions to prevent the “dark store” theory of using vacant, deed restricted properties for the purpose of lowering value and eliminating competition.
• Requires the MTT to make independent findings of fact and conclusions of law in their opinions.
• Is consistent with state law defining a property’s true cash value.