The Kansas Supreme Court has issued a blow to big box retailers trying to lower their property taxes. The courts ruling on Friday reversed the Kansas Board of Tax Appeals’ finding that Johnson County overtaxed Walmart Properties by tens of millions of dollars. The Kansas News Service reports Walmart argued to the Board that big box store properties should be valued as if they were vacant buildings, not operating businesses. The states highest court said the Board wrongly ruled in the company’s favor and did not fully consider evidence from Johnson County on how to value Walmart’s property. The court sent the case back to the Board to reconsider and the Board could rule in Walmart’s favor again.
Cities and counties in Kansas have concerns that if Walmart wins the case, it would allow other large retailers to push for lower property tax evaluations and payments.
Many counties have complained for years that the “Dark Store Theory” is shortchanging them of tax property revenue that should be paid.
