Hundreds of thousands of dollars in property taxes are at stake in a legal brawl between big-box stores and St. Joseph County.

Three Meijer and two Kohl’s stores in the county have appealed their property assessments for multiyear periods.

The retailers, faced with challenges as more people shop online, want to slash property taxes by arguing stores should be taxed the same as vacant ones, also known as dark boxes.

If the Indiana Board of Tax Review rules in favor of the stores, there would be substantial tax losses for the county, South Bend and Mishawaka.

Local governments would need to refund taxes for past years in which store assessments were too high, and the tax burden from stores could shift to residents and other businesses.

“At stake is hundreds of thousands of dollars for each property,” said Frank Agostino, an attorney defending the county against appeals. He represents County Assessor Rosemary Mandrici.

The legal fight raises a key question: Is the value of a store limited to the structure itself, or is it linked to the sales that go on inside?

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