State officials are concerned about the property tax revenue implications of the “dark store theory.” Under the theory, representatives of big-box stores advocate their properties should be valued as vacant, arguing those buildings wouldn’t be worth the appraised value if they went out of business. Barton County appraiser Barb Esfeld spoke about the theory Monday during the Barton County Commissioner meeting and said that it is something that is very active and is going to be a very big issue.

Barb Esfeld Audio

In April, Pottawatomie County won its appraisal case against Menards in an appeal before the Kansas Board of Tax Appeals. Pottawatomie County appraised Menards at $11.68 million while Menards argued the appraisal should be nearly cut in half to $6.5 million. Esfeld said the county spent a lot of money to argue the case, but it saved a lot of tax dollars.

Barb Esfeld Audio

Stores have won cases in Michigan, Indiana, Texas and Florida as the theory has spread in recent years. In addition to losing future property tax revenue, stores are also getting refunds on their previous payments.

The issue was a big topic at last week’s Kansas Association of Counties meeting in Overland Park.