By Shereen Siewert

TOWN OF RIB MOUNTAIN — Two of Rib Mountain’s largest big box retailers are suing the municipality over alleged “excessive real estate taxes,” a practice that has become commonplace due to a loophole in state law that allows such action.

Sam’s Club and Walmart both filed lawsuits May 24 in Marathon County Circuit Court seeking a combined refund of $116,572 in taxes they paid on property in Rib Mountain. Sam’s Club is a wholly owned subsidiary of Walmart, Inc., which is the largest retail organization in the world.

Current state law allows retailers to argue that their tax assessments should be lowered to the same level as if their stores were empty, or “dark.” In other words, retail chains like Walmart are not required to pay any higher property taxes on stores that are successful and profitable than they pay on stores that are vacant and boarded up. Critics say the loophole unfairly shifts additional tax burden to residential property owners by significantly reducing the assessed valuation for commercial properties.

Similar, successful lawsuits have been filed statewide and against the city of Wausau by large organizations including Walgreens, CVS, and other big box outlets.

According to the complaint, Sam’s claims the value of its Rib Mountain property is no more than $7,115,900, about 30 percent less than the $10,221,000 value assessed by the town in 2017. Walmart’s assessed value in 2017 was $12,126,900, but the company asserts the value of their property is no more than $9 million, about a 26 percent decrease.

Sam’s and Walmart filed an objection in January 2017 with the town Board of Review, but their objections were overruled June 29, according to court documents.

Rib Mountain Administrator Gaylene Rhoden said attorneys for the town are handling the dispute. A response to the complaint defending the assessments were filed June 8 by attorney Meg Vergeront.

Municipalities across the state are urging lawmakers to close the loophole and some counties are asking voters to weigh in with advisory referendums set for November, including in Outagamie County, Lake Geneva, and Kenosha.

A bipartisan effort to close the so-called “dark store loophole,” was introduced last June, but Wisconsin Manufacturers & Commerce opposed the measure and Republican leadership did not bring it to the floor of the Assembly or Senate for a vote.

At Tuesday’s Rib Mountain town meeting, a proposed dark store advisory is on the agenda for consideration. The meeting is set for 6 p.m. at the Rib Mountain Municipal Center, 3700 N. Mountain Road.