Property:
Tennessee: Use of Dark Stores as Sales Comparables Skews Big-Box Retail Store Valuation
Case No. 53.02-232875J, Tenn. State Bd. of Eq. (6/5/24). In a case involving the property tax valuation of an operating “big-box” retail store, the Tennessee State Board of Equalization (Board) held that while the store successfully showed a valuation reduction was warranted under the income approach, “little weight” was given to its sales comparison approach because its reliance on dark store sales “skewed the range of sales comparables for each tax year lower and artificially deflated the subject’s value.” In doing so, the Board referenced earlier rulings which “previously held that the Dark Store Theory is not given weight in Tennessee,” and stated that this “remains the case.” Please contact us with any questions.
30 Rockefeller Plaza New York, NY 10112-0015 United States
About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.
Deloitte provides industry-leading audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services to nearly 90% of the Fortune Global 500® and thousands of private companies. Our professionals deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Learn how Deloitte’s approximately 415,000 peopleworldwide make an impact that matters at www.deloitte.com.
