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'Dark Store' bill passes state House

LANSING, MI--   The Michigan House has approved a bill that addresses the “dark store” property tax issue in the state.

Big box stores have claimed their property is unique and should be assessed as though they were vacant, as no other business would be able to move into it as-is.  House Bill 5578 would require the Michigan Tax Tribunal to make its own independent determination when issuing a decision on a commercial property dispute. 

In May the Michigan Court of Appeals overturned a Tax Tribunal decision that allowed Menards in Escanaba to pay $3.3 million in property taxes instead of the $8 million the city said it owed.  The Court said the tribunal’s decision was “not supported by competent, material and substantial evidence.” 

Upon passage of the bill state Representative John Kivela said, "Dark store decisions that created a property tax loophole have taken millions of dollars out of communities in my district and across the state. Losing that tax money has hurt services that residents depend on. I hope that when this bill wins Senate approval that we can see a change in these dark store decisions and relief for our communities.”

The bill now heads to the Senate for consideration.  

Nicole was born near Detroit but has lived in the U.P. most of her life. She graduated from Marquette Senior High School and attended Michigan State and Northern Michigan Universities, graduating from NMU in 1993 with a degree in English.