CityLab Daily: Lights Out for ‘Dark Store’ Theory?

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Lights out: In November, CityLab investigated the practice of “dark store theory,” a novel legal argument that big-box retail chains like Walmart, Target, and Menards use to slash their property taxes by assessing active stores as if they were vacant. The practice has resulted in the loss of millions of dollars in taxable value to communities in Wisconsin, Michigan, Minnesota, Indiana, and beyond. It has also generated a vigorous debate about what these properties that proliferate throughout the United States should be worth during tax season. What happens if a retail apocalypse renders them worthless at the point of sale?