When you invest in proactive property tax management, you have the power to mitigate the risk of property tax increases and strengthen your case for a successful appeal.
Explore these five essential property tax management practices to help save your company money.
Five Best Practices For Successful Property Tax Management
Understanding the risks that go hand-in-hand with an increase in commercial property taxes is critical. More important, though, is being able to counter those risks to protect your company’s financial footing. Employ the following five strategies for effective property tax management.
1. Build a proactive plan. So many companies make the mistake of waiting for an assessment to arrive before taking action. Instead, you should have a plan in place before the assessment even comes across your desk. Who will be in charge of handling the appeal? What guidelines must you follow to successfully appeal the increase? A strategic, long-term property tax management plan enables you to be proactive and overcome the challenge of having to address assessment increases at the last minute.
2. Know your jurisdiction. Location is everything. The jurisdictions in which your properties are located control the assessment process. They determine deadlines, property values and the logistics of the appeal process.
3. Research the system. To prepare for a possible commercial property tax appeal, familiarize yourself with your jurisdiction’s processes, as this will improve your odds for a favorable outcome. How are properties appraised? What paperwork are you responsible for turning in, and when? How often does your county reassess property values? Knowing what is required of your organization before you get the increase in property tax helps you prepare for the unexpected.
4. Follow protocol. Adhering to the county’s protocol is the difference between garnering a successful appeal and having one denied. In some jurisdictions, appeal deadlines can be as soon as 15 days from the date of your assessment. That’s not much time to compile evidence and prepare your case. Follow what you learned in your research and ensure you file your appeal when and how the county requires. Also, keep in mind that you must pay your property taxes on time, or you forfeit your right to appeal altogether. If you win the appeal, you’ll receive a refund or credit.
5. Regularly monitor your properties. Based on your jurisdiction, you could face an increase in commercial property taxes at any time. To stay ahead of potential increases, your property should be evaluated every year for opportunities to appeal and reduce annual tax liability. Effective property tax management plans keep a close eye on factors that affect a property’s tax value. By conducting regular reviews as well as tracking changes and upgrades made to your facility, you collect the evidence you need in advance to build a successful case.
When you build an effective property tax management plan, you mitigate the risk of overassessment. By investing time and resources into thorough commercial property tax management, you’ll set your business up for successful appeals in the future.
Learn the secrets of effective property tax management and how to fight rising commercial property taxes in this free checklist.