Story concerning a property tax case that could affect the whole state businesses property taxes slipped through without much notice. An Indianapolis Meijer’s store filed suit against Marion County Indiana over how it’s store was assessed for property taxes. Counties could stand to lose financially if the ruling stands.
Here is more from mLIVE.com –
The Indiana Board of Tax Review ruled last month that the Michigan-based retailer’s store in Indianapolis should have been assessed in 2012 at the equivalent of $30 per square foot, instead of nearly three times the rate as Meijer was charged.
The decision could leave Marion County on the hook for a $2.4 million refund to Meijer and could set the stage for other retailers to make similar challenges to their tax assessments.
The value of retail real estate is based on the current condition of the business, but the case raises questions about what effect, if any, the sales that occur there should have on the value. Big-box chains are pushing to have their buildings compared to others that have been vacated and sold, an approach known as the “dark store theory.”
If the tax board’s ruling stands, Meijer will save more than $400,000 a year on its tax bill.