Were you shocked when you received your commercial property tax assessment this year? It’s true that economic conditions are improving, but did your property really appreciate in value that much?
Commercial property owners have the right to appeal their tax assessments However, most owners simply miss the commercial property tax appeal deadline (which is typically within 30 days of receiving the appreciation notice) or do not file properly.
If you think the assessed value is too high, you should exercise your statutory right and appeal! In fact, a $1 million increase in assessed value could result in an estimated increase of $10,000 in tax liability.
Commercial property taxes are the largest occupancy cost, and these tax amounts are statistically over-assessed. The law guarantees that you only have to pay your fair share, but how do you know what your fair share is?.
Although the process requires some quick action on the part of the property owner, the effort is worth it.
To give you some perspective on the potential savings opportunities, RPTA clients have received an average of 500% return on investment - over $21M of property tax savings.
Are You Running Out Of Time?
If you want to take advantage of commercial property tax appeals, you first need to confirm your appeal due date. In some states – including California, Illinois, Indiana, Ohio, and Pennsylvania – it’s time to start the process now. If you miss your appeal date, there’s no opportunity for extension.
California and the midwest have some of the highest tax millage rates in the entire country. That’s why completing the necessary paperwork and meeting the deadline is so important for property owners.
To see when the appeal deadlines are for your area call or visit your local tax assessor’s website. If you miss the deadline, you have no opportunity to appeal again until next year.
What’s The Appeal Process?
Once you’ve decided to file an appeal, it’s imperative that you start building a case. Use appraisal techniques and methodology to identify weaknesses in your property’s assessment. When you’ve built a solid case, familiarize yourself with your local commercial property tax appeal requirements, including what documents you should put in the appeal packet.
Once your appeal is filed, take your research to the next level and prepare for your hearing. In your appeal hearing, you’ll present your case to a hearing board who will render a decision on your case and hopefully reduce your property assessment based on the facts that you argued.
Filing an appeal is a lot of work and opens your property up to exposure if you’re not successful. Consider outsourcing your appeal process to an experienced team of commercial property tax management experts.
Are you concerned about missing your local commercial property tax appeal deadline or defending your case? Sign up today for your free consultation with commercial property tax management experts to discuss your options.