Michigan lawmakers will take another run at closing a “dark store” tax loophole they say has cost local municipalities an estimated $2 billion in lost tax revenue in recent decades.

State Rep. Jen Hill, D-Marquette, said a bipartisan group of legislators have introduced a package of bills to correct the problem. Joining the effort are fellow Democratic representatives Julie Brixie of Okemos and Mai Xiong of Warren, along with Republican Rep. Greg Markkanen of Hancock.

In a news release, Hill said the main benefit of the bill package is to ensure fair property tax assessments for big-box retailers, thereby restoring lost revenue to Michigan’s municipalities. Dark store loopholes allow retailers to reduce property tax liabilities by claiming in court that their stores should be assessed based on sale prices of vacant, often deed-restricted stores, Hill said.

It’s been a significant problem for the Upper Peninsula and communities across Michigan, while other states like Wisconsin and Maine have taken action to address it. In Michigan, legislative fixes have received support in past sessions, but have failed to advance to the governor’s desk. Both the Michigan Retailers Association and Michigan Chamber of Commerce have lined up against past efforts, claiming the bills target “longstanding property valuation principles.”

“Lawyers have created a very successful legal argument to substantially reduce their property taxes that citizens and small businesses are unable to qualify for,” said Markkanen. “This is a legal argument that has been used all across the country with varying degrees of success. It has been particularly successful in the state of Michigan, disproportionately affecting rural communities. It’s time we close this loophole in Michigan.”

House Bills 5865-68 would prohibit retailers from using vacant, deed-restricted stores as comparables, require petitioners to provide appraisals when filing appeals and set standards for the Michigan Tax Tribunal’s independent determinations of true cash value that ensure they are made in accordance with generally accepted appraisal principles, the news release states.

“Hometowns across the Upper Peninsula have been unfairly burdened by the dark store loophole for far too long, and the public revenue losses have devastated local services. Our legislation will ensure big-box retailers pay their fair share of property taxes, just like every other business and homeowner,” Hill said.

Marty Fittante, CEO of InvestUP, a regional economic organization for the Upper Peninsula, said a remedy is overdue.

“Our Upper Peninsula communities are driven by small businesses. Unfortunately, many of our locally-owned businesses are at a serious disadvantage under current law, which allows large national retailers to receive an unwarranted and unfair property tax break,” Fittante said. “We are grateful for this bipartisan effort to ensure all retailers are treated equally, and that small, local retailers have a chance to compete,” he added.