'As Ready as We've Ever Been': Altus Group Prepares for Challenging Tax Appeal Season

BY BRANDI SMITH

Paying property taxes is a necessary part of owning any real estate, however it can be a significant financial burden, especially if your property's assessed value is higher than it should be. Fortunately, Texas property owners have the right to challenge their tax assessment and potentially lower their property tax bill through the appeals process.

“The uncertainty of the current commercial real estate landscape presents unique challenges for this year’s tax appeal season, but we’re as ready as we’ve ever been,” says Mark Wood, Senior Director at Altus Group, a leading global provider of software, data solutions and independent advisory services.

”Given the current market uncertainty and the decline in overall transaction volumes, producing valuations can be more challenging.”

Altus Group serves clients in more than 75 countries. With a focus on innovation and technology, the company provides a wide range of services, including property tax management, valuation, and appraisal, as well as portfolio management and real estate investment advisory.

“At Altus we employ a comprehensive method for establishing values, which takes into account aspects such as market fundamentals, the assets themselves, discounted cash flow models, pricing data, and also anecdotes from market participants such as brokers, lenders, and leasing agents,” Wood shares.

That’s why he’s confident that his team is prepared for the task at hand.

“A key part of our preparation for tax appeal season is ensuring we have a fully optimized valuation process at-the-ready,” Wood explains.

Wood calls the appeal process “a complex task and a huge lift.” That’s why he recommends that property owners tap firms with the needed resources and expertise to fully leverage the market insights available.

“This is especially true if you’re a commercial property owner with properties across multiple jurisdictions,” says Woods.

Altus Group's property tax management services are based on two essential elements: its consultants’ extensive knowledge and relationships in the local and jurisdictional areas and its cutting-edge technology that ensures that all decisions are informed by the most recent and accurate market information.

“Following Altus Group’s acquisition of Rethink Solutions in May 2022, we’re able to leverage itamlink—a property tax management software solution— which allows our clients to manage up to hundreds of thousands of properties across the country, make better informed decisions on areas like tax liabilities, and streamline overall financial workflows,” Wood says.

Filing tax appeals can be especially challenging for property owners in Texas, as the state enforces a fixed deadline for appealing property tax valuations, leaving only a month for making any reclaims. This leaves little time for property owners to complete a thorough valuation and file any litigations on their own. In contrast, an experienced team like that at Altus Group can more smoothly navigate the process.

“We thoroughly review clients’ property assessments and provide marketdriven advice on potential tax appeal options, including both informal and formal negotiations, to help our clients increase their bottom line,” says Wood.

Looking ahead, he doesn’t predict significant relief for property owners anytime soon.

“While last year brought about proposals for potential reform, there wasn’t an agreed upon alternative to the way in which assessments would be made or taxes calculated,” Wood says.

Despite the challenges of the current commercial real estate landscape, commercial property owners can rest assured that Altus Group is ready and able to help them navigate the complex tax appeal process.

Learn more about Altus Group by visiting AltusGroup.com.