Wal-Mart Fights Paying Fair Share of Property Taxes

Wal-Mart Fights Paying Fair Share of Property Taxes

by James Parks, Oct 11, 2007

A new report shows Wal-Mart—the world’s largest retailer, which made nearly $12 billion in profits last year—is squeezing money out of local communities by trying to reduce its property taxes, the main source of revenue for schools, roads, police and fire protection.

The giant retailer has sought to reduce the property taxes it pays on 35 percent of its stores and 40 percent of its distribution centers, according to a report by the nonprofit research group Good Jobs First. In fact, Rolling Back Property Tax Payments, estimates the company has filed more than 2,100 property tax challenges nationwide. Click here for the full text of the report.

Good Jobs First Executive Director Greg LeRoy says:

Wal-Mart’s frequent poor-mouthing of its properties makes the company appear hypocritical. When it meets opposition to a new store, the company claims it will bring economic benefits to the community, which would normally be reflected in higher property values. Yet, in these assessment appeals, the company routinely argues that the value of its properties has declined. Unwittingly, Wal-Mart appears to be confirming the argument often raised by neighborhood groups that the construction of one of the company’s giant stores will reduce property values.