Michigan's 'Dark Store Theory' Under Fire.
The "dark store theory" has allowed big box retailers to save hundreds of millions of dollars in property taxes in Michigan, while costing local governments the same amount. The theory argues that the value of a property should be assessed based on what it would be worth empty, rather than as a successful business. Walmart is currently facing a lawsuit from Houghton city officials, who allege breach of contract after the retailer asked to reduce the taxable value of its store. Michigan State Sen. Ed McBroom has proposed legislation to create county boards of revision to review property taxes for commercial and industrial properties valued at $600,000 or more.