Lawmakers to release bill targeting big box stores (UPDATE)

Listen to this article

SCOTT BAUER

Associated Press

MADISON, Wis. (AP) — Big box stores operating in Wisconsin, along with the state chamber of commerce, are fighting a pair of bills circulated Wednesday that are designed to cause the retailers to pay higher property taxes.

The bipartisan push to change how the value of stores like Menards, Lowe’s and ShopKo is assessed for the purpose of levying property taxes also has the backing of various Wisconsin cities and towns that are now embroiled in costly court battles.

Mayors joined Republican and Democratic lawmakers at a news conference to release the proposals, saying they’re needed to reverse recent court rulings that have forced municipalities to cut large checks in tax refunds to retailers like Walgreens.

The stores have been successfully arguing that their values should be based on the underlying real estate, so nearby empty big box stores can be taken into account. But municipalities call that a dark-store loophole that artificially lowers the value of the operating retail stores, shifting the property tax burden to smaller retailers and homeowners.

The bills come in response to court rulings in Wisconsin and nearby Midwestern states — starting in Michigan — that have helped the retail giants lower the value placed on their stores for levying purposes.

Even as the mayors and lawmakers spoke, Wisconsin Manufacturers and Commerce sent a memo to legislators urging them to oppose the bills as being bad for business. The state chamber and other opponents blame assessors for being overly aggressive and targeting retail stores and restaurants for large tax increases.

“Thankfully, the courts have been on the side of property taxpayers and have overturned many of these unwarranted increases,” according to the WMC memo. “This legislation would fly in the face of current law, overruling what the courts have said.”

The bills have led to an unusual rift between the state chamber, normally a steadfast ally of conservatives, and Republicans in the state Legislature.

“Clearly we’re going to be fighting people who are normally our allies in the state,” said Republican Rep. Rob Brooks, the lead sponsor of the Assembly bills. The Senate sponsors are Sens. Duey Stroebel and Roger Roth. All three are Republicans, but Democratic Rep. Gordon Hintz joined them at the news conference to support what he deemed a policy of statewide concern.

Mayors and other local leaders from Appleton, Wauwatosa, West Bend, Pleasant Prairie and Madison were also on hand. The bills are a priority for the League of Wisconsin Municipalities.

Roth said he was hoping the Legislature would take up the bills in the fall. Brooks said he had spoken with Gov. Scott Walker about it, but would not say what his position is.

“The governor has been a huge proponent on holding the line on property taxes,” Brooks said.