The US government guarantees your right to reasonable property taxes. Every county, state, and jurisdiction has its own property tax assessors who directly visit your property for assessments. But after the pandemic, all the US states are running low on government revenue and funds. There is also a huge issue of backlog assessments in many states. This is because assessments were stopped in places due to the pandemic.
Now that things are getting back to normal. Many reports claim that there is a high chance of unfair assessments of properties. Why? Firstly the government needs funds to keep working and fill the gap in the system. Secondly, government assessors have too many properties to assess, and mistakes can be made anytime.
But commercial real estate properties are struggling to stay afloat in this post-pandemic situation. The market is volatile, and business is tough. So, why pay more on wrongful property tax assessments? There is an option for tax appeals which can look daunting. But it is not when you have the right resources on your side.
Read this article to find out how accurate property tax assessments are. Also, find out how many businesses have largely benefitted by appealing their case with the authorities.
Are your property taxes too high?
If you think your property taxes are too high, do not worry, you are not alone. With multiple properties under your portfolio, there is a high chance that your property was wrongly assessed.
According to ABC news reports, more than 60% of properties are overvalued for higher taxes. The reports also mention that when taxpayers make appeals, they always win some amount of their appeal. The bigger the case and evidence they have for their claims, the better their chances of winning these appeals.
But another shocking survey report by National Taxpayers Union Foundation says that only 5% of taxpayers push back on their tax assessments. Most people never look into the matter, even with over 60% of wrongful assessments. People just want to avoid the hassle of filing an appeal and assessing the property. The logistics of the process may seem overwhelming, but it is worth the effort.
Tax rates are different by state - It is a huge issue
The commercial property tax rates are very different in each state in the USA. Bankrate surveys and reports say that Montgomery, Alabama has a 0.29% tax rate. Whereas Suffolk County, New York, has 1.7%. This is another evidence of why every state and county may not always have a standard and fair tax assessment system.
In every state, the assessment gaps are also different. Montana has assessments every two years, whereas Oregon has assessments yearly. But when properties are not valued each year, the updated reports may go missing, and people may overpay.
But each state has a tax law where tax reassessment is a right that people can exercise. No matter what type of commercial real estate property you have, you have the right to challenge the tax bills. If you believe that you were wrongly charged, it is time to move against it and do something.
New York State Real Property Tax Law (RPTL) makes it compulsory for all properties to be assessed uniformly. Each state in the USA has its own such rules and regulations that you can make use of in case of unfair taxes.
How can you reduce those high taxes and fight the tax assessments?
Many ways exist to reduce those high taxes and fight your tax assessments. Here are the tried and tested methods that all property owners and managers must try for the best results,
Contact your local tax office and confirm the data with them. You can also ask for a tax card from the local town hall. This helps you understand all the information the tax assessor has gathered about your properties over the years.
Reduce the general curb appeal of your properties.
Do not conduct major upgrades and changes.
Talk to an independent third-party property assessment service provider.
File an appeal to lower your tax assessments.
Look into your case and show up for your appeal with concrete evidence.
Always allow complete access to your properties to the tax assessor. The assessment should be both inside and outside. Do not overlook any areas.
Look for tax exemptions that your property qualifies for. From lease term updates to changes in asset value, and ownership change, many things can be considered. But many tax assessors do not have the updated information and make wrong assessments.
Always research and tally your tax numbers with similar properties in the area.
Why property tax reassessments are a must?
Property tax assessments are a must because more than 60% of the American population is overpaying their property taxes. Are you one of them? Among these, residential taxes are still a little less complicated to fight.
But when it comes to commercial real estate properties, the logistics are cumbersome, so most property owners stay away from it. But in the end, this only leads to bigger holes in your pockets paying the taxes that are not fairly charged in the first place. That is why our services are here to help you pay only fair and justified taxes for your property.
Why our property tax reassessment services can help you
Any unfair assessment can be disputed by submitting a property tax reassessment and appeal request. But, you must have a solid understanding of assessment regulations and property appraisals in order to do that.
At Assetsoft, we offer property tax appeal services for all CRE clients. We promise to reduce your assessment. But what if we can not do that? You do not pay us. That is right. You only pay us when we succeed in reducing your taxes. Hence, it is completely on us to get you the best deal possible.
By detecting mistakes and areas of concern in your assessment, we can assist in reducing risks and recovering lost funds. For instance, to ensure that your evaluation corresponds with your previous taxation years, our professionals check your tax history. We also thoroughly check your property and write reports inside out.