Commercial Property Tax Increase. Yikes! Here’s How To Fight It

Were you shocked when you opened your commercial property tax assessment this year?

Commercial property tax assessments are rising across the board due to increased market transactions. If you’re faced with a significant tax increase, you’re not alone. You can take measures today to ensure that you’re paying no more than your fair share of taxes, but you must act quickly.

Are You Facing A Tax Increase?

If you found out that your property taxes were going to increase by over $25,000 this year, what would you do?

The owner/occupier of two food distribution facilities in the southeastern U.S. is facing this scenario.

The larger of the two facilities had its tax assessment value rise 39 percent, from $3.25 million to $4.52 million, which would result in taxes increasing from about $49,000 to $68,000. The tax value of the second building soared from $850,000 to $1.35 million, a 59 percent increase, with taxes jumping from $12,900 to $20,500.

Between just two properties, the local taxing authority is asking this property owner for 43 percent more than it did last year!

Act Fast To Appeal Your Commercial Property Taxes

You have the statutory right to file a commercial property tax appeal every year. But the turnaround time between when you receive your property tax assessment and the appeal deadline is short.

What facts could you use to substantiate your property tax appeal? A number of factors, including functional or economic obsolescence, could affect the market value of your property. Local taxing authorities assess properties using mass appraisal, a system that can assess thousands of properties in an efficient manner but with no consideration given the individual characteristics of a property.

Remember, acting quickly is critical; you typically only have 30 days to submit your tax appeal. Plus, the appeal process requires a lot of documentation and formality — missing a step (such as late delivery) will result in a rejection without the opportunity to be heard.

Check your taxing authority’s website to confirm your deadline. Don’t put this off until tomorrow or next week! By then your appeal deadline may have already passed.

If you need assistance on how to file an appeal (and ensure you’re successful), check out RPTA’s e-book, The Corporate Taxpayer’s Guide To Reducing Commercial Property Taxes.

Although appealing commercial property tax assessments involves tight deadlines and requires legwork, it’s worth the effort. If you don’t know where to start, RPTA is here to help. Our clients have seen property tax value reductions worth more than $1.5 billion. That translates to $21 million (and counting!) in tax savings.

Act now before your tax reduction opportunity slips away. For a limited time I am offering a free appeal consultation to assess your options and help qualified taxpayers get started with a commercial property tax appeal.