Roy Cooper Defends North Carolina Taxpayers from Wal-Mart

Wal-Mart has saved millions of dollars over the past few years by essentially paying rent to itself and then writing off the taxes. Fortunately for North Carolina, Attorney General Roy Cooper and Judge Clarence Horton, Jr. aren’t going to let that slide.

The judge dismissed Wal-Mart’s bid for a refund. Had the tax shelter not been deemed illegal, the corporate write-off would have effectively cost North Carolina taxpayers $33.5 million. The company is using the rent strategy in dozens of states - several have already moved to close the loophole after Wal-Mart’s actions were exposed in a February article from the Wall Street Journal. The judge’s decision on Friday could set a precedent for communities across the country. Wal-Mart Watch applauds Judge Clarence Horton, Jr. and Democratic Attorney General Roy Cooper for fighting Wal-Mart and defending North Carolina taxpayers.

Years ago, Wal-Mart founder Sam Walton always claimed to truly value the communities where he built his stores- but things have come a long way since then. Today, when Wal-Mart bilks states on their tax bill it takes needed funds away from building schools, roads and other valuable public works. Hopefully more states will follow North Carolina’s lead and make sure Wal-Mart pays its fair share of taxes and supports the communities in which it operates.