New “Dark Store” Solution Focuses on Michigan Tax Tribunal Process

A big box "dark store" in southeast Michigan.

A big box “dark store” in southeast Michigan.

State Representative Dave Maturen (R-Vicksburg) introduced House Bill 5578 this week (http://legislature.mi.gov/doc.aspx?2016-HB-5578) with the support of the Michigan Municipal League and other local government groups, to address the ongoing crisis of “dark store” property tax appeals.

The legislation proposed by Rep. Maturen, was developed following a workgroup process which he chaired and involved participation by the League and numerous local assessors, appraisers and other property valuation experts. The proposal would require Michigan Tax Tribunal members to equitably apply universally accepted appraisal standards when deciding larger property tax appeal cases. These standards will provide consistency in determining highest and best use as part of the property valuation process. The legislation would also restrict the consideration of comparable sales that have deed restrictions if the deed restrictions are imposed by the seller to keep competitors of the seller from the  market and  the deed restrictions provide no benefit to the property but only to the seller’s business.

A hearing on the bill is scheduled for 10:30 a.m. Wednesday (April 27) before the House Tax Policy committee. League members are encouraged to contact the legislators on the Tax Policy committee at this link and your own Representative and Senator to explain the importance of this issue and to urge their support for HB 5578. Use the League’s Action Center to contact your lawmakers.

Visit the League’s information page on the Dark Stores issue here: http://www.mml.org/advocacy/dark-stores/

Chris Hackbarth is director of state affairs for the League. He can be reached at chackbarth@mml.org and 517-908-0304.