Two Pottawatomie County retailers intend to appeal their 2018 property appraisals based on the “dark store theory”

Two Pottawatomie County retailers — Menards and Academy Sports — have said they intend to appeal their 2018 property appraisals.
The move is an indication that promotion of the “dark store theory” of property appraisal is alive and well in Kansas, county appraiser Lois Schlegel told county commissioners Monday.
The “dark store theory” is an appraisal technique being promoted nationwide by large retail chains which claim they are treated unfairly in the property appraisal process.

Their buildings, the theory claims, should be valued as if they were vacant and available for sale to a future hypothetical user rather than as a functioning, occupied store.
If the “dark store theory” gains traction, appraisers such as Schlegel believe it could have a “mushrooming” effect with other franchising businesses such as restaurants and hotels making similar appeals.
The trend would have a dramatic impact on the valuation of taxing districts and, consequently, on property tax revenues.

Read more: Manhattan Mercury.