Property taxes are an essential source of income for governments and are based on the assessed value of a real estate property. However, the assessed value of a property does not always reflect the estate’s real value leading to businesses overpaying in taxes and having false information on the property’s value. Approximately 60% of properties in the United States are over-assessed. Therefore, property tax appeals can be an essential tool for real estate business owners to obtain a fair value on their property and potentially lower their property tax payments.
At Assetsoft, we know the importance of property tax appeals for real estate businesses, continue reading to understand the importance of a property tax appeal.
Benefits of Applying for a Property Tax Appeal
Increased Savings and Lower Taxes
After succeeding in getting your property tax appeal approved, you will gain the benefits of increased savings. This is possible since by appealing the assessed value of a property, you will be able to reduce your property tax liability, resulting in an overall significant saving in the long term. This is important to homeowners with properties in areas that have high tax rates since a reduction in the assessed value of the property will lead to high savings. According to the Vancouver Sun, Burnaby City had to repay $6.4 million in already collected property taxes to a real estate business, Coquitlam because of successful appeals of 2020 assessments.
This works since if the assessed value of a property is inaccurate, it can lead to higher tax bills than necessary therefore getting the property’s value to present its accurate value, you will face lower and more accurate property tax.
Reviews of Ghost Assets
Reviewing ghost assets is an unknown benefit or a “ghost” benefit of appealing the assessed value. An asset becomes a “ghost asset” when it is no longer in use however you are still getting taxed. This happens if the assessor’s office has not been informed that it has been removed when the property owner does not notify the office of the change in the asset.
When appealing the value of a property, you shine a light on these ghost assets and have them removed from your property tax assessment, therefore, leading to lower tax bills and improved property value accuracy.
Improved property value
Finally, property tax appeals can also have an impact on the overall value of your property. Lowering property taxes through successful appeals can make your property more attractive to potential buyers and increase its overall value. This is particularly important if you are looking to sell their property in the near future. The number of properties appealed has increased from 4000 a year to approximately 7000 and their assessed values have soared from 20 Billion dollars up to 100 billion dollars in recent years
Why Our Tax Appeal Services Tool Can Help You
With Assetsoft, we help you navigate the property tax appeal process, reduce your tax liability and improve your financial outlook. We provide you with the assistance you need in identifying and removing ghost assets by reviewing property tax assessments and identifying inaccuracies. Our service guarantees you to save money and ensure that you are paying a fair and accurate amount of property taxes.