“They know measly little townships like ours, we’re probably not going to spend $80,000 on defending it.”Īnn Arbor assessor David Petrak says the city currently has no big-box appeals pending, so the Supreme Court’s order has no immediate effect here–although the Court of Appeals ruling could have bearing on future cases. “Every one of them appeals, period,” he said.

In the same September interview, Merte said a “dark store” appeal had become the rule, not the exception, for big boxes in Scio. In September, Merte had predicted that the outcomes would be “directly dependent” on the Supreme Court’s action. Scio Township assessor Jim Merte says he expects “maybe a couple of these large appeals will go away.” Scio also has a new Menards, and both it and an older Lowe’s have appeals pending. Ray says the tribunal “will, as it always does, make an independent determination of the property’s true cash value.”īut local governments are celebrating a victory. Kevin Ray, a spokesperson for the Michigan Department of Licensing and Regulatory Affairs, says the order won’t change any previous “dark store” valuations or set any new legal precedent. The court didn’t issue a formal ruling, but it did send the case back to the MTT–with instructions to take evidence on the store’s value based on the traditional cost-less-depreciation approach. The Court of Appeals overturned that decision, and Menard, Inc. On the “dark store” theory, the company put its value at just $3.3 million–and the MTT agreed. Escanaba had valued its Menards at $8 million. In October the Supreme Court denied Menard, Inc.’s appeal of a Michigan Court of Appeals decision reversing a big “dark store” win. But until now the Michigan Tax Tribunal (MTT) has been siding with the companies.Īs the Observer reported in 2015, both Scio and Pittsfield townships have fought “dark store” cases, but the latest development comes from the UP.

Municipalities say that doesn’t matter, and they should be taxed based by their cost to build minus depreciation, like any other building. The stores’ argument is that the facilities are built to suit their specific needs, so their value plunges after they leave. They’ve slashed assessed valuations of even brand-new stores by comparing them to similarly sized but vacant buildings. Big-box stores across the state have won huge property tax cuts in recent years using the “dark store” theory.

Pittsfield township tax assessor