Legislature moving to curb ‘dark store theory’ tax assessments

PORTLAND PRESS HERALD • March 14, 2022

A bill advancing in the Legislature would limit the ability of big box stores in Maine to use the so-called “dark store theory” to challenge property tax evaluations, a maneuver that results in the loss of hundreds of thousands of dollars in municipal tax revenue. The “dark store theory” is a practice that began about a decade ago in which large retailers appeal their assessments, arguing that their properties are worth far less than town and city assessments because the value should be based on a comparison with other large, but empty, stores nearby. A report by the Maine Center for Economic Policy said that when a big box retailer moves to a new location, it often puts restrictions on the businesses that can move into the space they own but are leaving behind, which results in a lower value for the property. Large retailers in Maine sought $184 million in lower valuations from 2015 to 2019.