Property Valuation

Oklahoma's 'dark store theory,' sometimes used by large retailers in property tax appeals, argues that:

AStores with no windows should pay less tax
BOccupied retail stores should be assessed at the value of vacant comparable properties (dark stores), which may be significantly lower than the value of the occupied, operating store✓ Correct
COnly night-time sales should be counted for assessment
DStores operating below 50% capacity deserve tax relief

Explanation

The dark store theory (used in property tax appeals by big-box retailers) argues that their occupied stores should be valued as if vacant because their properties are specifically designed for their use and have limited alternative uses. Oklahoma county assessors and courts have addressed these arguments in tax appeals.

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