For Cities, Big-Box Stores Are Becoming Even More of a Terrible Deal

Big-box retailers' new tactic to slash their taxes is the latest example of why cities are better off saying no to the boxes and cultivating Main Streets instead.

June 20, 2015, 11:00 AM PDT

By olivia-ilsr


empty parking lot of Eastvale, California's best buy and kohl's, mountains in background

Brien Clark / Wikimedia Commons

In February, the library in Marquette, Mich., announced that it was cutting its hours.

It wasn’t that its Sunday programming was any less popular, or that it had gotten the short end of the stick in next year’s budget planning. Instead, thanks to a new method that big-box stores are using to game the tax system, Marquette Township owed a $755,828.71 tax refund to the home improvement chain Lowe’s. Essential services like the library, the school district, and the fire department were on the hook to pay for it.

The Peter White Public Library would now be closed on Sundays.

Marquette has been hit hard by a tactic that the country’s biggest retailers are using to slash their property taxes. Known as the “dark store” method, it exemplifies the systematic way that these chains extract money from local governments. It’s also the latest example of the way that, even as local governments across the country continue to bend over backwards to attract and accommodate big-box development, these stores are consistently a terrible deal for the towns and cities where they locate.

Read the rest of the article at the link below.

Tuesday, June 16, 2015 in Institute for Local Self-Reliance

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