MAKING CHANGE AT WALMART
Walmart: Always Low Prices
Brought to you by America’s Taxpayers
What Walmart says…
✖ As Walmart attempts to enter large cities like Washington DC, the
✖
✖
company says it will not ask for pub
lic financing.1
“Our stores are often magnets for gro
wth and development all
across the country. We’re proud of
the contributions we make in
communities across the country-fr
om creating jobs and generating
tax revenue to helping customers sav
e and contributing to local
nonprofits.” - Steve Restivo, Senior
Director of Community Affairs.2
In cities like Chicago, Walmart says
it boosts the economy by
generating tax revenue for the City
and County.3
What Walmart doesn’t say…
n Walmart finds ways to finance its operations on the backs of taxpayers. Using tactics such as
deducting rent payments made to itself (through a captive real estate investment trust), it avoids
an estimated $300 million a year in state corporate income tax payments.4
n Walmart costs taxpayers an estimated $1 billion per year subsidizing low wages and benefits.5
n Walmart systematically challenges property tax assessments to chip away at its property tax
bills, costing local governments several million dollars a year in lost revenues and legal
expenses.6
n In New York State, for example, at least eight Wal-Mart locations have challenged their property
tax assessment, recouping about $766,000.7
n A national study examined a 10 percent random sample of Walmart’s 2,833 Supercenters and
discount stores as of the beginning of 2005, and found that at least one assessment challenge
had been filed at 35 percent of the stores. If that rate applies to all Walmart stores, the company
has brought challenges at more than 1,000 retail outlets nationwide.8
n Recent studies have shown that the tax revenue big box stores like Walmart produce is often
vastly overstated.
For more information, go to www.ChangeWalmart.org
MAKING CHANGE AT WALMART
n A study conducted in Asheville, NC found that a downtown mixed-use development would
generate $83,600 per acre per year in retail taxes, vs. $47,500 for a Walmart. Similarly, the
mixed-use development would generate $634,000/acre per year in total property taxes vs.
$6,500 for a Walmart.9 Another study by the organization Smart Growth also concluded that
mix-used developments are generally more productive tax-generating spaces.10
n A study by the organization Smart Growth revealed that big box stores only contribute slightly
more in taxes than single family homes. Single family homes generate roughly $8,200 per year,
and big box stores about $150 to $200 more.11
Check the facts…
1. www.walmartwashingtondc.com/10-facts-you-should-know-about-walmart-in-washington-d-c/
2. Sarah Siguenza, “Wal-Mart Met With Mixed Reactions,” Rockville Patch, 26 Jan 2012
3. www.walmartchicago.com/whats-at-stake/
4. Phillip Mattera, “Shifting the Burden for Vital Public Services: Walmart’s Tax Avoidance Schemes”, Good Jobs First, Feb 2011
5. Figure is a calculation of the percentage of Massachusetts Walmart associates receiving subsidized care (42%), applied to the 1.4 million
associates in the United States, at the cost to Massachusetts per each associate ($1,753.00) receiving aid. Using the data from
Massachusetts for 2009 found the percentage of Associates using publicly subsidized care. Percentage is 42%. Then applied this to the
entire Walmart workforce to determine number of Associates nationally who would receive publicly subsidized care using the rate in
Massachusetts. From the Massachusetts data found the per Associate cost by dividing the total cost of providing subsidized care in MA
to Associates by the number of MA Associates receiving subsidized care. This yielded a per Associate cost of $1,753. Multiplied that by
42% of Walmart’s total US workforce (1.4 million). Results in $1 billion.
6. Mattera, 2011
7. www.Wal-Martsubsidywatch.org/index.html
8. Ibid
9. Stephen Duffy, “Sometimes Walmart is Better: Walmart, Sprawl and Dumb Fiscal Policy,” New York Observer, 25 Jan 2012
10. Duffy, Jan 2012
11. Conor Dougherty, “Big Box Stores Don’t Produce Tax Gains,” Wall Street Journal Blog, 14 Jul 2010
For more information, go to www.ChangeWalmart.org