Report: No 'dark store' fix this year

At the annual Wisconsin Counties Association Legislative Exchange Wednesday, both Fitzgerald and Assembly Speaker Robin Vos said legislation aimed at closing the “dark stores” property tax loophole would not pass in 2018.

“Dark store” legislation would prohibit retailers such as Target, Walmart, Walgreens, Menards and others from using a tax loophole to challenge, and often lower, their property tax assessments.

Fitzgerald cited the issue being too complicated and needing further study before the Legislature acts as the reason for the delay in a vote, according to the Associated Press.

The loophole allows large retailers to use abandoned properties as comparable sites when challenging their yearly property tax assessments, which means less revenue for the local municipalities. This loss in revenue, in turn, forces municipalities to shift the tax burden to residential homeowners and the owners of small businesses.

Officials around Kenosha County have been pushing for the Legislature to close the “dark stores” loophole for some time, going so far as to take part in a “Dark Store Day” in December 2017 in order to raise awareness and encourage residents and homeowners to contact state legislators and pressure them to pass Senate bills 291 and 292 addressing the issue.

Local municipalities react to decision

With the Legislature seemingly not taking up the issue this year, Kenosha Mayor John Antaramian is calling on Gov. Scott Walker to step in and push the issue to some resolution.

“I think at this point in time, if the Legislature has decided not to address it, the governor needs to step up and make a statement so that there is not a shift in taxes to the homeowners while these retailers are not paying their fair share,” Antaramian said.

On Wednesday, Somers Village President George Stoner voiced his frustration with Fitzgerald’s comments on putting off a vote on the bills, taking particular issue with Fitzgerald’s reported reasoning behind the decision.

“I’ve been working on this for two years,” he said, adding the Somers Village Board approved two resolutions in support of the bills. “It’s not complicated one bit.”

Stoner’s frustration over the issue not only stems from its impact on the local community, but also its effects statewide.

“It is very upsetting,” Stoner said. “It’s hurting every taxpayer in the state of Wisconsin.”

Antaramian, like Stoner, had little patience for Fitzgerald expressing that legislators needed more time to study the issue.

“It’s about a 4-year-old problem,” Antaramian said. “I think that they’ve had a fair amount of time.”

However, while Antaramian stated that he believes that not holding a vote is the wrong decision and he is “disappointed” with the bills being put off this year, the city will continue to work to help the people that the loophole affects.

“We will continue to protect homeowners as best as we can,” he said. “The homeowners should not be responsible for picking up the tab for these companies.”

Stoner and other elected officials, including Pleasant Prairie Village President John Steinbrink, have previously expressed their opinion that the bills would receive “overwhelming” support if they were allowed to be voted on, a sentiment Stoner repeated Wednesday.

“It would pass if they would put it on the docket to get voted on,” Stoner said. “They are being obstructionists.

“It is the single most important piece of legislation to be voted on.”

Wanggaard ‘disappointed’

Sen. Van Wanggaard, R-Racine, also expressed his disappointment at the possiblity of the “dark stores” legislation not being brought for a vote this session.

“If true, I’m disappointed that the dark store fix will not be coming for a vote this session,” Wanggaard said. “Closing the dark store loophole means fairness for all property taxpayers. Properties should be taxed based on their value to comparable properties – not abandoned properties.”

— The Associated Press contributed to this report.