Best Buy gets property tax break for half-empty headquarters building in Richfield
Best Buy may soon be paying less in property taxes for its headquarters in Richfield.
The Richfield School Board voted unanimously to approve the move.
It ends a 20-year-old agreement that set a minimum property value for the headquarters complex.
Under the new plan, the school district will receive a one-time, $150,000 payment from Best Buy to offset the lost property tax revenue.
Best Buy says half of the building is empty, lowering the value to less than what was initially agreed upon.
“The mathematics done by the school district are absolutely about making sure that the school district taxes do not go up to our property owners and the school district loses no funding,” said Richfield Public Schools Superintendent Dr. Steven Unowsky.
The company will also make up the difference if the loss in tax revenue is more than that amount.
The move was also approved by Hennepin County and the Richfield City Council.