Property tax appeals for commercial properties can be a complex and often daunting process for business owners. However, understanding the basics of the process and the reasons for appealing property taxes can be crucial for commercial property owners to protect their assets and reduce their tax burden.
Every American in any state of the USA has the right to pay fair taxes. But shocking reports say that over 60% of the people always overpay their taxes. This is mostly due to bad assessments by public assessors. This is done to improve the tax collections of the government. But why pay more when you can improve your business's financials with fair tax bills?
Read this article to learn about everything there is to know about property tax appeals for commercial properties that businesses must know about. Our experts have carefully put together this information for your understanding.
What is a property tax appeal?
Commercial property owners can contest the estimated value of their property for tax reasons by filing a property tax appeal. The appeal gives the CRE property owner a chance to show that the appraised value of their property is excessively high, leading to an exorbitant tax burden. It is often submitted to the county assessor's office or the board of equalization.
Why Should Your Business Appeal a Property Tax Assessment?
A business owner or CRE property owner may desire to challenge their property tax estimate for a number of reasons. First and foremost, if a property's appraised value is too high, the owner may be paying more taxes than necessary. If the property is a substantial expense for the company, this could have a big effect on the bottom line.
Second, if a commercial property owner feels that their property tax assessment is incorrect or unfair, they may choose to appeal the determination. This can be the case if the assessment is based on inaccurate computations, out-of-date data, or faulty methodology. In some instances, an assessment might be made using a random formula that ignores the property's particular qualities.
How to appeal a property tax assessment?
While the procedure for contesting a property tax valuation varies by county and municipality, it often entails submitting a formal protest to the board of equalization or the local assessor's office. A specific amount of time, typically a few months after getting the tax bill, must pass before the appeal can be lodged. During this time, you need to gather enough evidence to make your case in court.
The owner of the property must offer proof to back up their appeals, such as an impartial assessment or other records showing that the property's assessed value is excessive. This can also include previous tax bills, your neighbor's tax bills, ghost asset bills, changes in property structures, and other documents to prove your appeal cause.
It is significant to remember that the onus of proof is on the property owner to show that the property's assessed value is excessive. Only then will the state agree to reduce your tax bills and resend a new tax bill.
This implies that the property owner will need to offer convincing justification for their appeal, and they could need to retain the services of an attorney or other expert to help them through the procedure.
Important things to keep in mind while filing for a Property Tax Appeal
Property tax appeals are a sensitive issue and work differently in each state and county. But there are many common factors that property owners must consider before filing an appeal. Here are the top five things that you can keep in mind.
Timing
The time frame for filing a property tax appeal is usually a few months after receiving the tax bill. If you think your property tax assessment is excessively high, it's crucial to be aware of these dates and move fast.
Evidence
Businesses must present proof to back up their appeal in order to challenge a property tax assessment. An independent assessment or other proof that the property's assessed value is excessive may be included in this.
Burden of Proof
The onus of proof rests with the property owner to show that the property's assessed value is excessive. This implies that the property owner will need to offer convincing justification for their appeal, and they could need to retain the services of an attorney or other expert to help them through the procedure. But if you employ a third-party service provider, the process becomes easy because they find the evidence on your behalf and take the load off your shoulders.
Risks and Benefits
A property tax appeal may include risks as well as rewards because they are not always successful. Businesses should carefully weigh the expenses and potential outcomes of the appeal process before determining whether to pursue one. But if your property saw a very steep jump in taxes, there is a very high chance that you will get a reduced tax bill after filing an appeal.
Professional Assistance
Many businesses decide to work with a specialist to help them with the property tax appeal procedure, such as an attorney or property tax consultant. These experts can offer knowledge and direction at various stages of the procedure and may be able to assist firms in achieving a more favorable result.
What are the potential outcomes of a property tax appeal?
If a property tax appeal is accepted, the property's assessed value will be decreased, lowering the owner's tax burden. However, you will have to visit the hearings and provide evidence in front of the court to make your case to get the reduced tax bills.
If you feel overwhelmed by this long-drawn process, it is best to employ a third-party tax appeal service provider to appear at the hearings on your behalf.
Commercial property tax appeals can be a challenging and complicated process, but they can be essential for business owners to safeguard their assets and lower their tax burden.
Commercial property owners can decide whether to file an appeal and how to do so effectively by being aware of the justifications for doing so, the procedures for doing so, and the outcomes that may result from one. If you are confused about how much this can benefit you, we suggest you get in touch with us. The tax appeal experts in our team will give you a holistic understanding of your situation and if it is worth the appeal.
Talk soon for more.