MADISON, Wis. — A battle pitting big-box retail giants including Menards and Wal-Mart against Wisconsin towns and cities is headed to the Legislature.

Republican-backed proposals, written in conjunction with the League of Wisconsin Municipalities, are designed to close the so-called dark store loophole and increase how much the mega-retailers pay local communities in property taxes.

The bills come in reaction to court rulings in Wisconsin and nearby Midwestern states that have helped the retail giants lower the value placed on their stores for levying property taxes. The retailers have successfully challenged their tax assessments in communities across Wisconsin, and the Midwest, by arguing they are overtaxed and should pay the same rate as a store that is closed and vacant.

That results in a shift of the property tax burden to smaller retail stores and property owners, said Jerry Deschane, executive director of the League of Municipalities.

The cities will have to overcome opposition from the powerful state chamber of commerce and deep-pocketed retail giants that stand to lose millions.

Wisconsin Department of Revenue rules require that assessments be based on the fair market value of a property. The stores argue that the value of the underlying real estate should be determined by looking at comparable building sales, prices that usually fall far below the assessment of an operating store.