HOUGHTON, Mich. (WZMQ)- Since 2018, Houghton has been in a legal battle with Walmart. Six years ago, the retail corporation brought a case to the Michigan Tax Tribunal to lower its property taxes by 60%.
In 2006, the City of Houghton claims it made an agreement with Walmart to provide infrastructure and land upgrades so the store could expand. The upgrades raised Walmart’s property value, which Houghton City Manager Eric Waara said the retailer recognized and agreed to.
“Now they’re trying to pretend that agreement doesn’t exist,” said Waara.
In 2018 Walmart filed a case with the Michigan Tax Tribunal looking to decrease its yearly property tax by 60 percent.
“Walmart is saying their store is worth less than what the assessor has it valued at,” Waara remarked.
Walmart agreed to delay the case twice once because of the Father’s Day flood of 2018 and again during the Covid-19 pandemic. Now, Walmart is pursuing the issue again and demanding $1.2 million from the city as back pay for taxes paid over the past 6 years.
“That’s $300,000 from the City of Houghton close to half a million from our school district, dollars from the medical care facilities, the public library, all these people the taxes get distributed to– they’re asking to get that money back,” Waara said, referring to the $1.2 million payment.
The city has now brought its own court case against Walmart in federal court. Houghton sued in the Western District Court against Walmart for breaking the agreement it had with the city.
In 2022, Walmart paid the City of Houghton $287,000 dollars in property taxes. A reduction of 60% would mean Walmart paying $114,800 in property taxes.
Waara said the loss of revenue could have far-reaching impacts in Houghton. There’s a possibility of layoffs and program reductions in the city’s schools, and the Houghton County Medical Care Facility would have to reduce its budget to the equivalent of a full-time staff member.
19 News reached out to Walmart for comment on the recent legal developments and received the following statement:
“Walmart is committed to the Houghton community, and it is home to many of our associates and customers. Walmart is a responsible taxpayer, and like any property owner, we believe our property should be valued just like everyone else’s. When we get a property tax bill, it should reflect the value of the land, brick, and mortar rather than the value of our business operations.”
Waara said a task force has been organized to help find a solution to the issue.
