3 Benefits Of Appealing Commercial Property Taxes Every CFO Should Know

Posted by Anne Sheehan on Sep 20, 2016

Find out why CFOs should consider commercial property tax appeals to secure tax savings.As CFO, you make daily financial decisions and constantly juggle competing priorities. Where does property tax management fall on your list of priorities?

Because tax assessments don’t come around every day, it’s likely that they are not a priority...until they increase.

That’s the approach many CFOs take, but when they do, they miss out on securing the tax savings that result from a successful appeal. Your property taxes are not a fixed cost. You have the right to appeal an assessment, and, if your appeal is successful, you could save thousands or even hundreds of thousands of dollars.

Explore the benefits of conducting an effective property tax appeal, and learn why you should considering taking a closer look at your assessment.

The Top 3 Benefits CFOs Reap From Successful Appeals

Tax savings. This is the greatest (and most obvious) benefit of a successful appeal, and it’s the reason many CFOs consider pushing for an appeal in the first place. A property tax bill that’s too high exposes your company to a number of risks, including depleting your savings and impeding your cash flow. High property taxes can stunt your company’s growth by exponentially increasing your cost of occupancy.

Save some money on your property taxes.So when an appeal is successful, the greatest benefit you reap is cutting your expenses down to your fair share – what you actually owe the jurisdiction based on the accurate valuation of the property. In addition, you don’t just benefit from future commercial property tax savings. Following a successful appeal, you could also receive refunds based on past overpayments.

Decreased financial risk. A related benefit is decreasing the financial risks associated with high property taxes due to an overassessment. When your property is overassessed, leading to higher taxes, your cash flow is decreased and you may run into difficulties as you plan for the future. An assessment causing unexpectedly high property taxes – and the possibility that they will go up in the future – make it difficult to accurately budget for your company’s expenses.

Successful appeals often start with internal valuations of the properties. If an internal valuation indicates a different value than your assessment, you can use it as the basis for evidence to support your appeal. After a successful appeal, you can use that property value to help you accurately budget for the future. When you know how much your property is actually worth, you have a better idea of how to manage it.

Internal recognition. For CFOs, it is no longer number crunching - it is about contributing to the growth of the company and making strategic business decisions. If you’re able to save your company thousands of dollars in property taxes, you’re more likely to be recognized for effectively navigating the complex, tedious process of a commercial tax appeal.

The Secret To Successful Appeals: Outsourcing Your Property Tax Management

Ultimately, a CFO’s secret weapon in the fight against overassessments is outsourced property tax management. While CFOs are experts on corporate finances, they might not be experts in property taxes or real estate. That’s why partnering with property tax experts is such a wise move.

These experts have the skills, experience and know-how to give you the best shot at tax savings. And when their appeal on your behalf is successful, you are the recognized leader of this important financial and strategic initiative which reduced your largest cost of occupancy.  

Ultimately, this partnership allows you to return to your daily role as CFO, confident that property tax experts are working on your behalf.

Learn more about the benefits that come with effective property tax management in a free whitepaper.

Commercial Property Taxes, Managed: A Guide For CFOs And CEOs. Find Out How To Prepare For Unexpected Tax Increases. Access My Free Whitepaper

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