Despite a state Supreme Court decision last year that ruled in their favor, you will likely still see local municipalities have to go to mediation over the property tax evaluations of its big-box stores. The most recent example went final on Tuesday when the Sturgeon Bay Common Council approved a settlement with Wal-Mart over its property tax bill. The settlement reduces Walmart's city tax by $3,300 per year for 2023 and 2024, more than half of Walmart’s original protest or claim that would have reduced their city tax by over $10,000 in both years. It is a tactic that other big-box stores have used in communities to reduce their property taxes, arguing that the buildings themselves should be subject to the assessment and not factor in the business they are generating. In their arguments, big-box stores compare like-sized buildings around the state that are standing but shuttered. The Wisconsin State Supreme Court issued a rare win for municipalities in February 2023, ruling against Lowe’s Hardware Store’s attempt to lower its property tax assessments in the City of Delavan. Sturgeon Bay City Administrator Josh VanLieshout says it is a lengthy and labor-intensive process for municipalities and one that he does not see disappearing anytime soon.

Despite Wisconsin passing on the opportunity to address the “dark store” loophole in recent years, nearby states have not. Indiana passed bipartisan legislation in 2015 and 2016 preventing assessors from valuing new big box stores as if they were abandoned. Michigan legislators introduced a similar bipartisan bill this past July.