ESCANABA, Mich. (AP) — Local governments are winners after the Michigan Supreme Court turned down an appeal in a major dispute over how to value big-box stores for tax purposes.
The Supreme Court heard arguments last week. It released a brief order Friday, saying a 2016 appeals court decision will stand.
The appeals court said the Michigan Tax Tribunal used the wrong standard to determine the value of a Menards store in Escanaba.
Big-box retailers have been reducing their tax bills for years by convincing the Tribunal that their stores are so large and unique that they should be assessed at much less than the cost of construction.
The Michigan Association of Counties says local tax revenue has been reduced by at least $100 million statewide since 2013.
2 comments
I am certain that there is no corruption here. After all, we are talking about taxes. Taxes are always applied fairly by very suspicious and unnecessary Tax Tribunals that are appointed by politicians. I am sure the big box stores are getting tax breaks out of the goodness of the Tax Tribunal’s hearts and there is no kick back going on..I am laughing out loud as I am typing this.
It’s all coming out of our pockets anyway. Corporations don’t pay taxes, they collect them and send them to the government; we pay for it all either through direct taxation or increased cost of goods and services to cover the corporate tax.