Riley County will have to refund just over $151,000 after the Kansas Board of Tax Appeals ruled in favor of the local Home Depot on a 2018 appraisal of the store. The decision could have effects beyond the loss of revenue to the local government. The county government received the board’s summary judgement earlier this week. The state tax board has the authority to review appeals on property tax disputes. Home Depot’s case is based on the “dark story theory,” which argues that big box stores should be valued as vacant — meaning they’re valued based on their hypothetical future lease value.
Source: themercury.com – RSS Results in news of type article

Riley County’s counselor and appraiser both say officials should continue to pay attention a pair of bills floating in the Kansas Statehouse related to “dark store theory.” During a meeting with local officials from various agencies Monday, county counselor Clancy Holeman and appraiser Greg McHenry gave a virtual presentation on dark store theory, legally referred to as hypothetical leased fee valuation. Under this theory, real estate owners — big box retailers in particular — have appealed their property valuations by arguing their stores should be valued in comparison to vacant, or dark, stores in the area, instead of having a traditional fair market valuation. Retailers who have successfully used this theory have been able to reduce their valuations and property taxes by as much as half in some cases.
Source: themercury.com