AUGUSTA - Rep. Nicole Grohoski, D-Ellsworth, spoke in favor of LD 1129, An Act Relating to the Valuation of Retail Sales Facilities, sponsored by Rep. Ann Matlack, D-St. George. The bill was heard before the Joint Standing Committee on Taxation on Wednesday.
LD 1129 helps ensure retail sales facilities, including big box stores, pay a fair share of municipal property taxes. In Maine, Walmart, Lowe's, Walgreens, Sam's Club, Best Buy and BJ's have requested that their valuations be reduced based on "dark store theory," a strategy to lower the property tax value of operating retail stores. Using this theory, big box stores argue that their properties should be appraised as if they are out of business and their property is of minimal resale value, despite the fact that their lights are still on.
"In Ellsworth, we have had both a Walmart and a Lowes vacate their buildings," said Grohoski. "At first glimpse, one might think that the retail spaces are worthless now, but that's not the case. The old Walmart is now shared by Mardens and Tractor Supply, and the spot is so popular, a Dollar Tree was built there as well. The old Lowe's is now a state-of-the-art mouse production facility for the Jackson Lab. The argument that once a big box retailer vacates a space it can't be filled just doesn't hold up in my community."
In 2018, the Ellsworth Walmart Supercenter filed an abatement request for its property taxes to be cut in half, which would amount to a loss of $195,000 in annual tax revenue for the city." When the Walmarts of the world don't pay their fair share, the tax burden is shifted to the rest of us," said Grohoski.
Ellsworth Tax Assessor, Larry Gardner, also spoke in support of the measure.
Grohoski, a member of the Joint Standing Committee on Energy, Utilities and Technology, is serving her second term in the Maine House of Representatives. She represents the communities of Ellsworth and Trenton.
Contact:
Jackie Merrill [Grohoski], c. 812-1111