ST. LOUIS — The state has ruled against global retailer Ikea’s push to reduce its city property taxes, but still agreed to cut millions of dollars off the local store’s valuation.
Ikea, known for its modern, flat-pack furniture, had petitioned the state to slash the value of its local store from $75.7 million to $23.4 million because it said the store, which opened in 2015, was “functionally obsolete†and therefore overvalued.
The company argued, in part, that its building at Forest Park and Vandeventer avenues was “functionally obsolete the day the last coat of paint was put on.†The highest and best use of the property, Ikea said, was to demolish it.
But Missouri’s State Tax Commission, which hears appeals from taxpayers after they go through their local taxing agency, disagreed, ruling Friday that the company did not provide enough evidence to substantiate its claims.
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The state agreed with the St. Louis Board of Equalization’s determination that the property should be revalued at $62.5 million.
St. Louis Assessor Michael Dauphin said his office was “satisfied with the State Tax Commission’s very thorough, well-assembled opinion.†Ikea did not immediately return a request for comment.
The Europe-based company opened its 377,000-square-foot store here in 2015 after the city granted it $32 million in tax increment financing. The subsidy is part of the $168 million TIF city officials approved for the Cortex technology district in 2012.
Ikea spent at least $100 million to build the store, officials said at the time. It is the only location in eastern Missouri.

Shoppers snake through lines for the grand opening of the Ikea store on Wednesday, Sept. 30, 2015 in St. Louis. Photo by Huy Mach, hmach@post-dispatch.com
- Huy Mach

Brandy Mitchell of St. Louis dances with friends to music from a DJ before the grand opening of the Ikea store on Wednesday, Sept. 30, 2015 in St. Louis. Mitchell started her wait in line Monday afternoon and was 37th place in line, which qualified her for a free couch. Photo by Huy Mach, hmach@post-dispatch.com
- Huy Mach

The flag of the United States is raised during the grand opening of the Ikea store on Wednesday, Sept. 30, 2015 in St. Louis. Photo by Huy Mach, hmach@post-dispatch.com
- Huy Mach

James Jefferson of St. Louis organizes carts for shoppers during the grand opening of the Ikea store on Wednesday, Sept. 30, 2015 in St. Louis. Photo by Huy Mach, hmach@post-dispatch.com
- Huy Mach

Ikea employees peek at the crowd waiting in line for the grand opening of the store on Wednesday, Sept. 30, 2015 in St. Louis. Photo by Huy Mach, hmach@post-dispatch.com
- Huy Mach

Shoppers snake through lines for the grand opening of the Ikea store on Wednesday, Sept. 30, 2015 in St. Louis. Photo by Huy Mach, hmach@post-dispatch.com
- Huy Mach

Bridget Robinson of St. Louis walks out with a free couch and chair for being 31st in line during the grand opening of the Ikea store on Wednesday, Sept. 30, 2015 in St. Louis. She's with her sons Jacques (left), 10, and Joshua, 9. Robinson started waiting in line Monday morning. The couch will now go in her living room. Photo by Huy Mach, hmach@post-dispatch.com
- Huy Mach

Mesmaran Sunscaray of Cleveland, Ohio, entertains shoppers with his dancing skills while directing traffic during the grand opening of the Ikea store on Wednesday, Sept. 30, 2015 in St. Louis. Photo by Huy Mach, hmach@post-dispatch.com
- Huy Mach

Roni Steger of Cedar Hill takes home the free couch she got for being 26th in line during the grand opening of the Ikea store on Wednesday, Sept. 30, 2015 in St. Louis. She had been camping out in line since Monday morning. Photo by Huy Mach, hmach@post-dispatch.com
- Huy Mach

"We are just jammin' to the music to stay warm," said Crystal Bell (center) who danced with new acquaintance Valerie Rayford (left) on Wednesday, Sept. 30, 2015, outside the Ikea store in St. Louis. The store opens at 9 a.m. Both women are from St. Louis. Photo by Laurie Skrivan, lskrivan@post-dispatch.com
Gallery: Ikea store officially opens its doors in St. Louis
Hundreds of shoppers were rewarded with freebies as they waited to be the first through the doors Ikea's newest store in St. Louis on Wednesday, Sept. 30, 2015.
Shoppers snake through lines for the grand opening of the Ikea store on Wednesday, Sept. 30, 2015 in St. Louis. Photo by Huy Mach, hmach@post-dispatch.com
- Huy Mach
Brandy Mitchell of St. Louis dances with friends to music from a DJ before the grand opening of the Ikea store on Wednesday, Sept. 30, 2015 in St. Louis. Mitchell started her wait in line Monday afternoon and was 37th place in line, which qualified her for a free couch. Photo by Huy Mach, hmach@post-dispatch.com
- Huy Mach
The flag of the United States is raised during the grand opening of the Ikea store on Wednesday, Sept. 30, 2015 in St. Louis. Photo by Huy Mach, hmach@post-dispatch.com
- Huy Mach
James Jefferson of St. Louis organizes carts for shoppers during the grand opening of the Ikea store on Wednesday, Sept. 30, 2015 in St. Louis. Photo by Huy Mach, hmach@post-dispatch.com
- Huy Mach
Ikea employees peek at the crowd waiting in line for the grand opening of the store on Wednesday, Sept. 30, 2015 in St. Louis. Photo by Huy Mach, hmach@post-dispatch.com
- Huy Mach
Shoppers snake through lines for the grand opening of the Ikea store on Wednesday, Sept. 30, 2015 in St. Louis. Photo by Huy Mach, hmach@post-dispatch.com
- Huy Mach
Bridget Robinson of St. Louis walks out with a free couch and chair for being 31st in line during the grand opening of the Ikea store on Wednesday, Sept. 30, 2015 in St. Louis. She's with her sons Jacques (left), 10, and Joshua, 9. Robinson started waiting in line Monday morning. The couch will now go in her living room. Photo by Huy Mach, hmach@post-dispatch.com
- Huy Mach
Mesmaran Sunscaray of Cleveland, Ohio, entertains shoppers with his dancing skills while directing traffic during the grand opening of the Ikea store on Wednesday, Sept. 30, 2015 in St. Louis. Photo by Huy Mach, hmach@post-dispatch.com
- Huy Mach
Roni Steger of Cedar Hill takes home the free couch she got for being 26th in line during the grand opening of the Ikea store on Wednesday, Sept. 30, 2015 in St. Louis. She had been camping out in line since Monday morning. Photo by Huy Mach, hmach@post-dispatch.com
- Huy Mach
"We are just jammin' to the music to stay warm," said Crystal Bell (center) who danced with new acquaintance Valerie Rayford (left) on Wednesday, Sept. 30, 2015, outside the Ikea store in St. Louis. The store opens at 9 a.m. Both women are from St. Louis. Photo by Laurie Skrivan, lskrivan@post-dispatch.com
Steph Kukuljan • 314-340-8506 @StephKukuljan on Twitter skukuljan@post-dispatch.com
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