Commercial Property Tax APPEAL SERVICES
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COMMERCIAL PROPERTY TAX Commercial property taxes are one among the most important expenses for many owners of commercial real estate. The government estimates a worth annually and extracts money from commercial property owners unless they appeal. The commercial property tax is actually a wealth tax.
Do Commercial Tenants Pay Property Taxes? Yes, tenants either directly or indirectly pay property taxes. With net leases, the tenant is directly responsible for paying the property taxes. With gross leases, the commercial property owner writes the check to the tax entities. However, the source for payment of taxes is the rent tenants pay. Commercial property owners seek an equitable yield in investment property. Higher property taxes lead to higher rent. Any way you look at it, higher commercial building property taxes mean higher rents and less net yield to the building owner.
The assessor’s value is simply a guesstimate
How Is Commercial Property Tax Calculated?
using the cost approach to value (in most cases). The cost approach is considered the least reliable method of valuation by licensed appraisers. Most assessor values aren't accurate.
The assessment ratio is 100% in most states. The taxable value is simply the assessor’s guesstimate of value. Some states have an assessment ratio.
Commercial property tax calculation: = Assessor value x assessment ratio x tax rate
There are often multiple taxing jurisdictions for every property, including city, county, school and special districts.
How to Reduce Commercial Property Taxes? Protest the value of your commercial property annually. Yes, protest each and each year. Even if the value didn't change, protest the value . The assessor’s values are based on the cost approach, the least reliable method of appraisal. You can protest both excessive value and unequal value annually. Protesting excessive value addresses a value in excess of market value. Valuing commercial property is difficult and reasonable people can disagree.
Benefits
Specialized commercial appraisal team
Exceptional depth of experience
Get the Best result at a reasonable fee
Litigation option
If your taxes are not reduced you PAY NOTHING, and a portion of the tax savings is the only fee you pay when your taxes are reduced! Many FREE benefits come with enrollment.
Reach www.cutmytaxes.com to appeal your high property taxes.