A 12 Percent Tax Drop for a Landmark Store
Scheels, the sporting goods retailer anchoring the Meridian retail area near Ten Mile Road, is expected to pay roughly $310,000 in property taxes for the 2026 tax year, marking a 12 percent drop from the roughly $352,000 it paid last year, according to the Ada County Treasurer’s Office. The store features a Ferris wheel.
From Construction Costs to Market Worth
That tax relief comes after a formal property valuation appeal settled by compromise. When the Ada County Assessor’s Office first evaluated the newly constructed property in 2025, it set the value at just over $78 million using construction permits to estimate the build cost. But as the county and the retailer hashed out the property’s actual market worth, the conversation shifted from what it cost to build to what the building is actually worth on the open market.
“I think (the Scheels building is) unique to Idaho,” said Tom Loveless, a commercial appraiser with Ada County, who worked to help resolve Scheels’ appeal. “… We don’t really have anything like that in Idaho.”
Clashing Methodologies on the Open Market
Property taxes in Idaho rely on an equation where each taxing district applies a local levy rate to a property’s taxable value. For Scheels, the friction centered entirely on that underlying valuation. Representatives for Scheels, including Dan Polityka, filed appeals with Ada County and the Idaho Board of Tax Appeals arguing the structure was worth significantly less, floating initial estimates ranging between $47 million and $62 million, according to records obtained via a records request.
The core disagreement lay in appraisal methodology. The county relied on a cost approach, calculating estimated construction costs minus the value lost from how specific the building is to Scheels. Scheels countered with an income approach, examining what comparable large-format retail footprints—such as Cabela’s locations owned by Bass Pro Shops—would command in annual rent if a different tenant moved in.
Weighing the Value of a Ferris Wheel
The distinctive layout of the Meridian store complicated the calculation. Beyond standard retail space, the building houses an aquarium, a small arcade, food, and a two-lane bowling alley. Because those amenities are specific to Scheels, finding a replacement tenant would present a challenge if the sporting goods business ever vacated the premises.
County Settlement Lowers Store Tax Burden
The county and the retailer compromised. The settlement lowered Scheels’ assessed valuation to over $65 million, and likely dropped its tax burden by over $40,000.
Scheels representatives did not return requests for comment regarding the finalized assessment.
