When evaluating your commercial property taxes, it is crucial to develop a well-thought-out strategy to ensure a fair and accurate assessment. Do not simply accept what is presented to you.  Commercial property taxes can significantly impact your bottom line, and a proactive approach to evaluation can potentially result in cost savings and increased profitability. To guide your strategy, consider the following key steps.

1.     Understand the Assessment Process: Begin by familiarizing yourself with the assessment process in your jurisdiction. Research local tax laws and regulations, including the criteria used to determine property value and the methods employed for assessment. This knowledge will empower you to navigate the evaluation process effectively.

2.     Gather Property Information: Compile comprehensive information about your commercial property, including its physical characteristics, improvements, and any recent changes that may affect its value. Accurate documentation will enable you to present a compelling case during the evaluation process and demonstrate any factors that may warrant a reduction in taxes.

3.     Review Assessment Notice: Carefully examine the assessment notice you receive from the tax authorities. Verify the accuracy of the property details and evaluate the assessed value in comparison to market trends and similar properties in the area. Discrepancies or inconsistencies should be noted and addressed during the appeal process.

4.     Engage a Professional Appraiser: Consider hiring a professional appraiser with expertise in commercial property evaluations. An experienced appraiser can provide an unbiased assessment of your property's value and help you build a solid case for a tax reduction, if warranted. Their expertise can also be valuable in analyzing the accuracy of the tax authorities' assessment.

5.     Conduct Market Research: Conduct thorough market research to understand current trends in commercial property values within your locality. Gather data on recent sales, rental rates, and vacancy rates for similar properties. This information will help you gauge the accuracy of your property assessment and provide evidence to support your case for a tax reduction.

6.     File an Appeal: If you believe your property assessment is incorrect or unfair, file an appeal within the designated timeframe specified by your local tax authority. Follow the prescribed procedure and provide all relevant documentation, including property information, appraisal reports, and market research. Clearly articulate your grounds for the appeal and present a strong case based on factual evidence.

7.     Attend Hearings: If your appeal proceeds to a hearing, make sure to attend and present your case in a professional and organized manner. Prepare a concise presentation that highlights the key points of your argument and supports your position with concrete evidence. Be respectful and responsive to any questions or concerns raised by the assessing authority.

8.     Seek Legal Counsel if Necessary: In complex cases or instances where substantial tax savings are at stake, it may be prudent to seek legal counsel. A tax attorney specializing in property tax matters can provide expert guidance, negotiate on your behalf, and represent you in legal proceedings if required.

9.     Monitor Future Assessments: Even if you successfully appeal your property assessment, it is important to monitor future assessments and remain vigilant. Property values, market conditions, and tax laws can change over time, so stay informed to ensure ongoing fairness and accuracy in your tax obligations.

By following these strategic steps, you can systematically evaluate your commercial property taxes and increase the likelihood of achieving a fair and equitable assessment. Remember to maintain a professional and cooperative approach throughout the process, as constructive engagement with the tax authorities can often lead to more favorable outcomes.

Or just contact Lovett Property Tax Advisors and we will do all this for you.