The “dark store” issue is still a a concern for local governments in Michigan, but a legislative fix for the taxing of large retail facilities, also known as big-box stores, is moving through Lansing.

The issue was the focus of an episode of WNMU’s “Media Meet” program Thursday.

The term dark store refers to the concept put forth by retailers that their currently operating facilities should be taxed the same as similar empty, or dark, facilities since those buildings are designed for only one use.

In Michigan, the 2010 Tax Tribunal ruling in favor of Target over the city of Novi, was the first case to use only the criteria that the value of a particular building being taxed should be based on that of vacant or “dark” building.

Before the panel discussion on television program, a documentary called “Boxed In,” produced by Dwight Brady, NMU professor of communication and performance studies, was shown.

In the documentary, Steven Lasher, chief judge and chairman of the Michigan Tax Tribunal, said the tribunal is only following the law when it considers a case regarding a big-box store.

“We look at each individual case,” he said.

Lasher said many communities who challenge the dark store taxing method lose their cases because they can’t afford to hire adequate legal counsel.

“That’s the inequity,” he said.

The Michigan Chamber of Commerce on its website is urging the Senate to reject HB 5578, calling it a “job killer.”

During the panel discussion on Media Meet, host Bill Hart said since 2010 Michigan has lost $200 million in potential tax revenue due to dark-store rulings by the tax tribunal.

On the panel was appraiser Bruce Closser, who said appraisers use a cost method to develop an appraisal for a building, meaning the cost to construct and building and the land value.

However, it’s that method large retailers are challenging at the tax tribunal.

“With big-box stores, (appeals) are pretty common,” he said.

Randell Girard, Marquette Township manager, said local governments are at a serious disadvantage when it comes to taxing large retailers because of the dark store concept.

“We’re dealing with a stacked deck,” he said.

Marquette Township spent $250,000 in legal fees to get the Lowe’s dark store case to the Michigan Supreme court, which refused to hear it, Girard said. Because of that, some services have been cut, including closing the Peter White Library on Sundays. Other services may have to be cut or reduced, also.

The dark store issue has been addressed by the Michigan Legislature. House Bill 5578 was approved June 8 by a vote of 97-11 and sent to Senate. The bill calls for the entire Michigan Tax Tribunal to make its own, independent determination of the highest and best use of the property under appeal, and ensure that comparable properties are used when comparing the same highest and best use.

Some local businesses are also taking action on the dark store issue with the Businesses Recognizing the Importance of Tax Equality (BRITE). Business owners following the BRITE store model say they won’t try to use the dark-store method for taxation.