Trend UPDATE. Reducing Commercial Appraisals via Empty Storefront Values.

Last week we learned about the trend to reduce commercial appraisals by the valuation of an empty store.

They’re here. The trend has arrived in Texas. & there’s a trendy name- “dark stores”

Dallas Morning News | Will big box retail’s ‘dark store’ strategy lead to fewer taxes in Texas?

Your Informed Intel on 7th Spetember 2016:

Which commercial property owners are involved? Big Box stores

What is the argument they’re using to lower their property tax bills? That market value is the “sale price of similarly sized but vacant retail buildings”

What local governmental officials say in repsonse? That’s like basing residential property taxes on a foreclosed, vacant home.

Which states have local governments that are feeling the revenue hit? 

• Michigan
• Alabama
• Florida
• Indiana
• Iowa
• North Carolina
• Ohio
• Tennessee
• Washington
• Wisconsin

What have state legislatures done in response? 

• Indiana banned the practice of using vacant stores as market value comparisons
• Alabama gave counties more resources to fight the valuations
• Michigan is considering changes to the appraisal challenge process

Governing | Big-Box Stores Battle Local Governments Over Property Taxes