Why it Pays to Trust Your Commercial Property Tax Protest to a Professional

BY HUNTER LANE, VICE PRESIDENT, LANE PROPERTY TAX ADVOCATES

There’s a popular saying that the only things certain are death and taxes. Most commercial property owners, however, would probably agree there’s an even better way to word things.

The only things certain are death and RISING taxes.

The simple truth is, the mass appraisal systems most county appraisal districts (CADs) employ are not a perfect science. Although they lump together properties of similar size, and in similar geographic regions, they don’t factor in considerations such as a property’s age, its extras and condition.

More often than not, the end result is an overinflated valuation that just doesn’t add up. And at a time when it seems basically everything is costing more, that increase can really hurt budgets.

The best way to fight unfair commercial property taxes, and to keep a property’s valuation in check, is to protest each year. And having an expert in your corner who knows the ropes can make a tremendous difference. Here are a few ways a professional property tax firm can help prime a commercial property owner’s protest for success and save thousands of dollars over time — and a few tips to make selecting the right firm simpler.

Property Tax Professionals Have the Time and Capacity to Protest — and Protest Well

There’s more to a commercial property tax protest than filing some paperwork, voicing a complaint and right sizing an unfair valuation. It’s an in-depth process driven by strict deadlines laid out by state law. Such protests often span multiple months, require the right evidence to form a convincing case and necessitate numerous visits to the appraisal district itself.

In other words, protesting your commercial property taxes requires time and effort that doesn’t work with commercial property owners’ busy schedules. It also results in undue stress.

Hiring a professional firm allows a property owner to leave most of the heavy lifting to an expert who handles such work every day. He or she understands the process and has the resources and experience to carry it through effectively. Most commercial property tax protest firms will handle the following:

• Initial filing

• Information gathering

• Valuation and assessment analysis

• Preparation and filing of renditions, appeals, corrections and exemptions

• Appraisal district correspondence

• Representation through formal and informal hearings

• Representation through arbitration or litigation, if needed

A Seasoned Property Tax Team Has Seen and Dealt with it All

Everyone’s had that dream before where they’ve shown up for school woefully unprepared for a test they’d altogether forgotten they had. Although winging it is more or less alright in the dream world, the same approach can have real consequences as it relates to commercial property tax protests.

Forgotten documentation, questions you, the property owner, aren’t prepared to answer and similar missteps can weaken an argument and lower your chances of successfully reducing a valuation. The good news is, turning things over to a professional firm means trusting someone who deals with these issues each and every day.

An experienced property tax firm will have a grasp on what’s required to plead and prove a case, an idea of the questions likely to arise as things progress and an ability to quickly pivot if something unexpected happens at any stage of the process. Because no two commercial property portfolios are alike, no two protests are exactly alike, either. Still, there’s enough similarity to merit working with a professional. It’s all about setting the wheels in motion for the steps you know are coming, planning for the unexpected — and moving forward with proven processes.

Longtime Tax Professionals Have Relationships They Can Leverage

When it comes to commercial property tax protests, both WHAT you know and WHO you know can make a difference. CADs and the people who work for them are professionals, and most do their best to make informed and honest decisions. Even so, it helps one’s case to approach a protest in a strategic way.

An experienced property tax team will have worked with a wide range of CADs, and they’re likely to have friendly relationships with those who are making the important decisions. They know who to speak with, the best way to reach them, how they tend to make decisions and the points that are most likely to position a case in a favorable light. In other words, they know their audience, and they can use that to your advantage.

Professional Property Tax Teams Get Proven Results

The main reason a commercial property owner would choose to protest their property taxes is to bring valuations down to a more reasonable level — and ensure they’re only paying what’s fair. And professional firms have proven time and again that they’re up to the task.

During the 2022 tax season, for instance, Lane Property Tax Advocates protested in six states and 105 Texas counties — and successfully reduced property values by an average of 19 percent. It all added up to more than $150 million in estimated cumulated tax savings. And you can find similar success stories with other trusted firms. The savings add up when you have the right team by your side, and many of the most trustworthy firms won’t require payment unless their protest efforts are successful.

Selecting the Right Property Tax Team for the Job

Deciding whether or not to dive into a commercial property tax protest is only half the battle. Determining who to trust with such work matters, too. Here are some factors to consider when it comes time to get started.

• Find a Team that Won’t Overcharge You: Many, but not all, professional firms operate under a business model that says they don’t get paid unless they successfully lower your commercial property valuations. Make it a point to ask about the fees associated with a firm’s work. When and how will you be charged? How are you billed? Will filing fees enter the mix? Who do you approach if you receive a bill that doesn’t seem right? Having answers to such questions will put your mind at ease and ensure you’re working for a team that fits your company’s budget.

• Seek Out a Team You Can Work with: Although your property tax firm will be doing most of the heavy lifting, the protest process will require some effort on your part in the form of documentation, consults and the like. (And those tasks are much more manageable when you like the people on the other end of the phone line or email chain.) Schedule a phone call or short meetup before hiring your potential firm to get a general feel for personalities and experience — and an understanding of how the team works.

• Work with a Team Your Friends and Colleague Recommend: Word of mouth isn’t just the best form of advertising. It can be the best way to determine who to trust with important business decisions. Online reviews and Better Business Bureau (BBB) rankings can provide general insight into how a company operates and the success they’ve brought to others like you. Take things a step further by asking other commercial property owners who they’ve worked with in the past, and digging into the important details. How was their experience? What sort of results did they see? Would they hire the firm again? Is there anything they’d do differently? Those conversations provide a wealth of insight into a firm’s offerings, without the filters that sometimes accompany online reviews or testimonials.

Protesting your commercial property taxes each year is a smart move for any commercial property owner — but it can be an unnerving experience. Trusting the right team to tackle the work for you doesn’t just save you precious time, stress and money, but can leave you free to return focus to your day-to-day work. (And that benefits your business as a whole.)

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