As I See It
Wisconsin needs to close dark-store loophole
Wisconsin’s residential taxpayers are paying more than their fair share, while big corporations are paying less. It is called the dark store loophole, and it is something Governor Tony Evers wants to close. This loophole allows big retailers like Walgreens and Macy’s to successfully argue in court that they should pay less in taxes. They claim when their properties are being assessed, that value should be compared to vacant stores. And so far that argument has held up in court. As a result, corporations end up paying less, and residential taxpayers make up the difference by paying more. La Crosse has refunded hundreds of thousands of dollars in taxes to some big corporations doing business in the city. Governor Evers is right to work to close this loophole. The law should be rewritten so that businesses are assessed on the actual value of their property, not some empty store. We all should be paying our fair share to fund our schools, our police and our roads. If successful, Wisconsin residents should see a decrease in their property tax bill. This effort has clear support. Back in November, 23 Wisconsin counties held advisory referendums asking whether the dark store loophole should be closed. Over 78% of voters in those referendums voted to close the loophole. It is time to bring some fairness to Wisconsin’s tax code, and make sure everyone is paying for the services they use.
Paul Brown
February 7, 2019 at 11:28 am
Scott,
Please know that closing loopholes sounds good, but it is not. Finding loopholes in the law is nothing more than a person or a corporation attempting to find a way around paying more in taxes than they have to. Who wouldn’t try to pay less tax than necessary. It is human nature to try to keep as large of amount of money as possible out of the hands of government. Individuals want to keep more so they can decide for themselves how to spend, give, or save the money and corporations want to keep more so they can expand their business, develop better products that people want, sell products or services at less cost, hire more employees, pay employees more, or increase profits to help 401k, mutual fund, or stock holders. That is, us. Low or no corporate taxes benefits people. For reasons beyond my understanding, Evers will get accolades for sticking it business by closing this loophole. Your comment suggests that closing the loophole will save individual taxpayers money. This is a false argument. If corporations pay more, government will just spend the money. Government at all level including Wisconsin already spend more than they receive from taxation with deficit spending. They are not going to lower individual taxes. If corporations pay more, then individuals will ultimately pay the cost in the form of higher prices for goods and services, smaller raises, fewer jobs, reduced innovation or expansion, etc. If Tony Evers is as successful as you hope, he will only be taking money out of 1 pocket and placing into another another pocket. What good is that? If only you could see the folly of this and educate the listening public, we would all be better off. If government would do less and spend less money, taxes could be decreased for all and there would be no need to seek loopholes to save money and no need for government to close loopholes to collect money to satisfy their voracious appetites.
George Caplan
February 8, 2019 at 6:19 am
It is a value of the property not of the business that occupies the property. Its not a loop hole it is as it should be. The building and property are separate from the business that occupies them. The business pays separate tax.