Declining malls, "dark stores" and how it'll ripple through your upcoming tax bill

With Holiday shopping season officially kicking off tomorrow, it's looking at lot different at the stores in 2019 than it did when we grew up. There are a lot of empty buildings and scenes like this these days.

It's worth noting that with all of these stores closing, there is a lot of tax base that goes away for cities and other municipalities. Which means that property taxes for Wisconsin homeowners are likely to rise even more than they already would due to increased home values, because homes take up a higher proportion of the tax base.

Even the stores that stay around might be getting a tax break in Wisconsin, as they often claim a "dark store" loophole that uses the threat of closing to lower the assessment on big-box retailers and other businesses. This has received increasing attention in recent years, as more retailers have appealed their assessments using the dark store loophole, which has angered many local governments by making them use tax dollars in court cases that result, and has driven them into demanding action from the State Legislature to stop the practice.

Governor Evers campaigned on changing and/or removing this loophole last year, but when he asked the GOP-controlled State Legislature to put that change into state law as part of his first budget, was rejected. And based on an article in the Wisconsin Examiner from a few months back, it looks like it'll take Robbin' Vos and other Republicans to be out of power for that situation to change.

The League of Wisconsin Municipalities, the Wisconsin Counties Association and the Wisconsin Towns Association put out a joint release last November after voters in 23 towns, cities and villages voted overwhelmingly to tell the governor and legislature to close the loophole.

The Leagues’ anti-Dark Store webpage notes that 63% of the State Legislature signed on as co-sponsors of the dark store bill in the last legislative session.

But nothing gets done.

League of Wisconsin Municipalities Deputy Director Curt Witynski is a realist when asked about what it would take to actually get the loophole closed: “To make it actually happen might take a change in majority in one of the houses.”

While the bills have 55 co-sponsors, he explains that the Speaker’s opposition to the popular bill, perversely, might mean more Republican legislators feel they can express support, because they know it will never move forward. “On the other hand, legislators might want to avoid it as that stance could anger the Speaker,” he explains.

Continuing this "dark store" Swampiness and the overall structural change in how Americans shop is likely to have a sizable effect on the property tax bills many of us will receive in the next couple of weeks, and it'll be intriguing to see if there is voter blowback. Especially because it is now useless for a lot of Wisconsinites to write off their property taxes under provisions of the GOP's Tax Scam from DC.

So while I recognize that if Americans cut back on their spending during this Holiday season, it may be the final nail to end the chances of Trump being re-elected, there is still a drawback if they choose not to use brick-and-mortar retail in the next month. And that's because many of these places are already struggling to get by, and people not visiting the dwindling number of stores that remain might cause more closings and more burdens pushed onto residential home owners. Choose accordingly and wisely, folks.

EDIT-Just in time for Black Friday, my Congressman has another reminder as to why there are fewer places to Christmas shop at in Wisconsin this year - vulture capitalism.

This #BlackFriday, no one will be going to Shopko, Toys R Us or Payless.

Private Equity gutted these once thriving companies for a quick buck, leaving thousands of workers without a job.

This #BlackFriday, we don’t need private equity abuse—we need to #StopWallStreetLooting.

— Rep. Mark Pocan (@repmarkpocan) November 29, 2019