For each of the 92 counties in the state, Thursday’s decision at the Indiana Supreme Court will have disastrous consequences.
In a 3-2 decision, the justices denied Howard County’s petition for review of the case involving the Howard County assessor and Kohl’s, meaning a previous Indiana Tax Court ruling in favor of the company will stand.
“The ruling, which likely ends the case, is a major victory for big-box stores in Indiana, who now stand to pay less in property taxes, costing counties significant amounts of tax revenue. It’s unclear how the ruling could affect other property classes, although county officials have expressed concerns about a ‘domino effect,’” the Tribune’s George Myers reported in his front page story Saturday. “Effectively, the case amounted to whether vacant big-box stores, also known as ‘dark boxes,’ can be used as comparable properties when deciding a property’s market value. County officials fought the approach, saying it didn’t appropriately reflect Indiana market value-in-use standard.”
According to a study by Policy Analytics, this ruling could mean a statewide assessed value reduction of nearly $3.5 billion.
Howard County Assessor Mindy Heady hasn’t given up hope, though. She said she is looking toward the next General Assembly session to pass legislation outlawing the use of “dark box sales” as comparable properties.
The county should continue to push this issue, despite this setback. The case handed a defeat to local governments throughout Indiana. We mustn’t let it be the final word on this issue.