Officials in Traverse City are concerned that if Costco comes to town, it will take advantage of so-called “dark store” tax assessments. That’s when businesses argue for lower tax rates based on what their stores would be worth empty – or “dark.”
Retailers like Target, Meijer and Costco have appealed their assessments in Michigan, hoping to pay less money in taxes. They say if they turned around and tried to sell their stores, not many companies would want to buy them. The Michigan Tax Tribunal, which decides tax appeals, has been ruling in favor of retailers.