The Minnesota Supreme Court has sided with Washington County in the county’s fight with Walmart over property taxes.
Walmart filed property-tax petitions last year contesting the valuations of its big-box stores in Cottage Grove, Forest Lake, Oak Park Heights and Woodbury for taxes payable in 2017, claiming the properties were overly assessed. Store officials later dropped the Forest Lake appeal.
Washington County officials moved to dismiss the petitions, arguing the real estate was income-producing property. Under state law, they said, Walmart had to submit business income and expense information to the county assessor’s office within 60 days of challenging their assessed valuation, but Walmart officials failed to meet a deadline to produce information related to space inside the stores rented to third parties, such as a tax-preparation service, nail salon and fast-food restaurant.
In February, the Minnesota Tax Court sided with Washington County and dismissed the three petitions.
Walmart officials took the issue to the state Supreme Court, which issued an order in October affirming the decision of the Tax Court.
In July, the Supreme Court ruled on a similar case concerning three Walmart stores in Anoka County, affirming the Minnesota Tax Court’s decision dismissing the company’s tax petitions and determining that properties such as nail salons, Subway restaurants and beauty salons were income-producing. As such, Walmart was required to disclose certain financial information in order to challenge its property taxes, and, the Court held, it failed to do so.
“We have reviewed carefully all of the … submissions and conclude that County of Anoka is directly on point in all relevant respects and controls the disposition of these consolidated cases,” Associate Justice David Lillehaug wrote in the Oct. 22 order.
Assistant Washington County Attorney James Zuleger said Thursday that county officials were not surprised by the decision.
A Walmart spokeswoman did not respond to an inquiry seeking comment.