4 Signs Reactive Property Tax Management Is Costing You Money

Posted by Anne Sheehan on May 20, 2016
Mitigate the risk of property tax increases by taking a proactive approach to tax management.In every business, there are benefits to proactively identifying problems and planning ahead to solve them. Receiving a commercial property tax increase is a problem that many companies fail to plan for, even though it has a significant impact on your finances.

Is your company losing money because your current tax management approach is failing? Explore four signs that you’ve fallen victim to reactive property tax management, and find out how to break the cycle.

4 Signs Your Property Tax Management Is Reactive

1. You have no plan in place.

While tax increases may be unexpected, you shouldn’t get caught unprepared. The backbone of a proactive property tax management approach is having a plan in place to deal with potential increases. When an assessment comes in, your team should know why it’s significant and who is responsible for addressing it.

Property assessment notices often sit on desks in a number of departments before the CEO or CFO even sees them. When that happens, you may have only a few days left to appeal an increase. Proactively developing a plan to address commercial property tax increases ensures that you’ll have enough time to appeal – and that you’re equipped with an effective strategy to do so.

2. You’re caught by surprise.

When hit with a property tax increase, are you surprised and scrambling to deal with it? This reactionary approach means you’re not staying on top of assessment schedules or regularly assessing your own properties.

You should never be blindsided by an increase. Contact the proper authorities in the relevant jurisdiction to get more information about the assessment and appeal schedule so you’ll know when to expect an assessment to land on your desk.

3. You’re not familiar with your jurisdictions.

In addition to familiarizing yourself with your jurisdiction’s assessment timelines, you should understand their appeal protocols. Every jurisdiction has different deadlines, processes and data needs. Some appeal timelines could be as short as 15 days from the date of the assessment notice, making it easy to miss if you’re unprepared. To improve your chances for a successful appeal, take time to get to know your jurisdictions and follow their processes to the letter.

4. You aren’t accruing cash.

Even if you’re going to appeal your property tax assessment, you must still pay your tax bill on time. This is a key part of the appeal process that some companies may not be aware of.

This means that you must have enough cash on hand to cover the cost of an increase in property taxes, should you be dealt one. In some cases, an increase could as much as double your property taxes. Your company is required to pay that money, which may put your financial stability at risk. Start saving now to prepare for potential future increases.


The best way to proactively manage your property taxes is to partner with a tax specialist. An expert with proven success in managing commercial property taxes has the knowledge to help you gather all of the necessary information, stay ahead of deadlines and follow each jurisdiction’s processes. Turning to a professional property tax advisor eases the burden of adhering to the appeal process and increases your potential to secure valuable tax savings.

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