A government mandate states that no one should pay more than their fair share of property taxes.
However, it’s the fiscal responsibility of each property owner to ensure they do not overpay. Errors and declines in value build over time. You must be proactive to see the greatest commercial property tax savings.
While they are held to a mandate, local tax assessors have little incentive to help you lower your property tax value. You need to stay on top of your assessors and the year-to-year variations in your property tax value. Get in front of your taxes, because once you fall behind, it’s hard to catch up.
Think of saving money on commercial property taxes as a marathon rather than a sprint; a long-term financial strategy is necessary for success.
Consider the example of a family that for several generations owned industrial buildings in Georgia before selling the portfolio for $110 million in 2006. Over the years, the family proactively managed its commercial property taxes, experiencing year over year tax savings. When the buildings sold, the implied tax savings totaled at least $20 million over the life of the portfolio.
The Best Way To Save The Most Money On Commercial Property Taxes
Outside of not knowing that commercial property taxes can be negotiated and lowered, the biggest factor holding businesses back from challenging their tax assessments is the lack of time and expertise required. Most businesses aren’t knowledgeable enough to successfully make the case, let alone get the greatest benefit from a commercial property tax appeal.
Any corporate real estate executive has little to lose by outsourcing the heavy lifting to property tax management professionals. The results are almost guaranteed to be better than anything a business with limited time, resources and tax expertise could manage on its own.
Where To Begin
All that’s needed to get the process started are copies of tax bills, confirmation of real estate holdings and some financial data on personal property. A little legwork up front could lead to significant tax savings.
If you’re ready to stop paying more than your fair share of property taxes, consider the benefits of outsourcing the task to property tax experts. When you outsource the work, they do all the heavy lifting and hand you a check or deliver a reduced tax bill when it’s over.
Proactively managing and challenging commercial property taxes is a long-term financial strategy for reducing cost and increasing value.
If you start challenging your property tax assessments now and continue to do so each year, you could experience significant real and implied tax savings across the life of your property portfolio.
To learn more about reducing your commercial property taxes, download RPTA’s free whitepaper, 5 Reasons You Should Challenge Your Current Commercial Property Tax Assessments.