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Published - Wednesday, July 09, 2008

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Wisconsin high court backs Walgreens on property taxes


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The Wisconsin Supreme Court sided Tuesday with the national store chain Walgreens in a property tax dispute that has statewide implications.

The court struck down a common assessment practice and said the city of Madison has been charging two Walgreens stores too much in property taxes.
Walgreen Co. has challenged assessment methods in two dozen communities, including La Crosse, that had based valuations on the above-market-rate leases the chain enters into rather than the lower open market rent.

The high court agreed that Madison improperly valued the stores based on the rent Walgreens pays to lease the property rather than fair market value.

La Crosse Assessor Mark Schlafer has said it’s common practice for assessors to take into account more than the brick and mortar of a building.

He said Tuesday he was surprised — “along with dozens of assessors who thought they were assessing the properties properly” — by the court’s decision to overturn the circuit and appellate courts.

There likely will be refunds to Walgreen Co., Schlafer said.

Though the Walgreens on La Crosse’s North Side was sold in 2005 for more than $4.5 million, Walgreens claims the fair market value for both is no more than $2.2 million and the assessed value is no more than $1,989,020.

The 2007 valuations for the North and South Side Walgreens stores were $3 million and $2.9 million, respectively.

The Deerfield, Ill.-based retailer says its two La Crosse properties were overvalued by almost $2 million combined.

Taxes on the 2626 Rose St. store were $85,539.80 and $80,632.30 on the 900 West Ave. shop.

Walgreen enters into long-term leases with higher than market rate rents. And while the drugstore chain doesn’t own the properties, it does pay the property tax bills.

The Associated Press contributed to this report. Samantha Marcus can be reached at (608) 791-8220 or smarcus@lacrossetribune.com.
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wiseup wrote on Jul 10, 2008 3:45 PM:

" Besides over assessing, $1,000,000 revenue from parking tickets, endless committees and ordinances, neighbors whining, city doesn't like name Grafitti's, sign ordinances, alcohol task force, anti-smoking control freaks WHY ELSE WOULD OUT OF TOWN BUSINESS OWNER WANTING TO OPEN A VACANT 3rd Street BUILDING think LaCrosse has an UNFRIENDLY ATTITUDE TOWARDS NEW BUSINESS and change their plans to develope LaCrosse and decided to go ELSEWHERE! "

Im Still Jackson wrote on Jul 10, 2008 9:32 AM:

" Heres a thought. How about filing a classaction lawsuit against the city for defrauding the taxpayers by overinflating property values and collecting undue monies based on that fraud and while your at it take a look at the tax exempt property roles and see where that needs to be adjusted because you can bet theres fraud there too. The best way to kick off this lawsuit is to stop paying your proprty taxes and put it into escrow pending the outcome of the lawsuit and that should bankrupt the city bringing them to the bargaining table with some realistic views.
Just a thought remeber people have the power for we are the govenment if so choose to be proactive about issues instead of sitting around with our heads in the sand! "

Im Still Jackson wrote on Jul 10, 2008 9:26 AM:

" This is what happens when you mess with Corporate America and the big box people and the pharmacutical industries drug stores.The difference is they have in house concil and a war chest to fight these tax tyrants who in turn make up for it by pilfering the small guy who cant aford to fight back let alone pay his over accessed property taxes too. "

acj wrote on Jul 9, 2008 6:22 PM:

" bravo to all who commented. you are right on the button. we the people who live in this [free country] have been getting screwed by government just too long. "

HonestAbe wrote on Jul 9, 2008 11:35 AM:

" homeowners should contact this judge and see what remedies there are for the little guys

there should be an option to allow to pay taxes on the cities assessment, or you should be able to pay taxes on what a private assessor values the property at "

enuffalready wrote on Jul 9, 2008 8:39 AM:

" So the north side Walgreens building/property was sold for $4.5 million, which should set the fair market value, in 2005 but the Wisconsin Supreme Court said that you can't assess it at that number. Makes sense to me?????????? "

Darwin wrote on Jul 9, 2008 7:45 AM:

" NOW how will they afford new carpet in the King's Quarters? Sheesh. High style ain't free, kids.
Here's an idea... do what we all have to do these: tighten the belts! Run the organization more efficiently. "

La Crosse Taxpayer wrote on Jul 9, 2008 5:31 AM:

" LaCrosse has overinflated property assessments on the majority of the property in LaCrosse because they have been limited by state law on property tax increases so this is just another one of city halls little schemes to screw the taxpayer!!
I have just had my house appraised recently because it is going up for sale so I can escape the high taxes of this area and LaCrosse has the property assessment on this year's taxes nearly $20,000 higher than a professional appraiser appraised the property at!!
I feel if a governing body over appraises property and that property is sold they should have to make up the difference between the selling price and the overinflated property assessment they give property!!
Every property owner should have their property assisted and challenge city-hall if your assessed value is inflated by the good-o-boys in government. "

justaguess wrote on Jul 9, 2008 5:16 AM:

" this should also translate to lower taxes for all property owners as all property is overvalued by fair market prices. This is common through out the state and not just La Crosse. Perhaps we can then see a higher accountability for the inapt services and government that tax payers receive. "

HonestAbe wrote on Jul 9, 2008 1:50 AM:

" awesome, a high court seeing how defunct lacrosse is,,, hopefully it will shine light on how f'd this county is! "


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