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Big-box Stores Lose as Supreme Court Drops Big Tax Case

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Image credit: Michigan Supreme Court

The Michigan Supreme Court backs local governments as it turns down an appeal in a major dispute.

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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 says 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.

The Original Case 

Michigan Supreme Court Order

Associated Press

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