Most companies receive a property tax assessment, review it, pay what they owe and never think about it again. Unfortunately, that approach may cause you to miss potential savings that you could secure with a successful property tax appeal.
Taking a second look at your tax assessment benefits companies large and small. Find out why you should invest the time and what to do if you discover you’ve been overassessed.
Why Should You Revisit Your Tax Assessment?
Whether you’re a large company with multiple holdings or a small company with your stake in one location, it’s likely your property has been overassessed. In fact, more than 90% of businesses are overpaying their commercial property taxes.
Your business could face significant risk if it receives a sharp increase in taxes. You may not have the capability to handle a multi-thousand dollar increase, or you may have to reallocate funds from other important areas of your company.
If you’re managing the property taxes of a large company with multiple holdings, reviewing your assessment and appealing could lead to significant savings. Every state has its own legislation related to property taxes, and each jurisdiction is responsible for executing that legislation. With multiple properties to manage, understanding the various legislations can become a complex and tedious task.
Small companies may also be susceptible to overassessment, because they often lack the experience with property taxes or their jurisdiction’s way of operating. While you do have to pay the initial tax, a successful appeal leads to a refund on what you’ve overpaid.
What Should You Do If Your Tax Assessment Is Too High?
You’ve looked at your assessment and believe your property has been overassessed. Now what happens? The onus is on you as the building owner to develop and execute a successful appeal.
First, you should determine the true value of your real estate holding. This is the foundation of your case. Next, look at your jurisdiction’s record card and find out exactly how your property was valued. Does this valuation align with how you valued your property? One way to find out is by researching comparable properties in your area. Find out how much they sold for in their submarket and compare your property to those numbers.
Once you’ve identified how your property was assessed, it’s time to craft your appeal. You must research your jurisdiction to determine the deadline for filing a property tax appeal, the paperwork you need to file and the appeal process. To secure savings on your property taxes, you’ll need to back up your property valuation up with data and supporting information, like the value of similar properties or identify obsolescence in your own property.
Many companies turn to property tax experts for assistance when managing their property taxes or conducting an appeal. It’s a time-consuming process, and you likely have other work on your plate. With a property tax expert, you’ll have extensive databases at your disposal and the expert’s vast experience on your side.
Every company needs to pay close attention to its property tax assessments. Taking another look at your tax assessment helps you determine if you’ve been overassessed, and careful research and expert assistance could lead to significant savings.
Learn more about why you should outsource your property tax management responsibilities by reading our free whitepaper.