City of Marshfield, Menards could go to court over tax assessment

Marshfield City Hall - PHOTO: TJ Pezl for Midwest Communications, 2018.
Marshfield City Hall - PHOTO: TJ Pezl for Midwest Communications, 2018.

MARSHFIELD, WI (WSAU-WDLB) -- The city of Marshfield could be going to court with Menards over a significant difference in the store's assessed property tax value.

City Administrator Steve Barg says city assessors and representatives from the Eau Claire-based home improvement retailer have come to a stalemate, and going to court may be the last option available. "They believe that the value of this facility should be reduced by roughly 20% from what we have it assessed at. Talking with them and seeing some other data suggests that that's unwarranted," Barg told WDLB Radio in Marshfield. He says if there is to be a reduction in the assessed value, it should be considerably less.

Barg says his staff and representatives from Mendards will have ongoing dialogs about the matter, but if a middle ground can't be reached then they will go to court. "We'll keep talking, keep engaged with our attorney, and see if Menards comes back with other offers we could entertain and discuss."

According to Barg, the League of Wisconsin Municipalities has had a fairly favorable track record when it comes to taking legal action with the big-box stores when it comes to their assessed value. "They haven't all won, but cities have done fairly well. Nobody wants to go to court because it's a crapshoot."

The so-called "Dark Store Loophole" is something Wisconsin cities and lawmakers have been trying to close for several years. It allows retailers such as Menards, Wal-Mart, or Walgreens to argue that their property should be assessed at the same value as if the store is closed, or "Dark." Cities argue that a store that's open requires more city services to maintain, therefore taxing it at a lesser value passes on those expenses to homeowners and other businesses.

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