The so-called “dark store” debate over how big box stores are valued is now in the hands of the Kansas Supreme Court. The state’s highest court has agreed to hear Johnson County’s appeal of a court decision that found the county overvalued 11 big-box retail stores. Last fall, the Kansas Court of Appeals upheld a decision by the state’s tax appeals board, which found the county overvalued a group of Walmarts and Sam’s Clubs by about $60 million in 2017 and $63 million in 2016. The appeals court’s fueled the so-called “dark store theory,” a criticism leveled at retailers that believe their property should be appraised as if their property is vacant, separate from the business activity it generates such as leases. The case has major financial implications for local governments and Kansas businesses with millions of dollars in property taxes hanging in the balance.
Source: Sunflower State Journal
