Fighting For The Underdogs In Commercial Property Tax Appeals

There are many factors that determine the size of a Minnesota commercial property tax bill.

The most important contributing factors to a Minnesota property tax bill are:

  • the state tax rate
  • local tax levies
  • the class of property owned by a business
  • and the valuation of the property

Minnesota subjects three types of property to taxes:

  • Property owned by a nonprofit community service-oriented organization. (Class 4c(3)(ii) property is subjected to the to tax at a special rate.)
  • Seasonal residential recreational properties (cabins and small resorts.)
  • Commercial and industrial properties, including class 3 commercial, industrial, and public utility property exclusive electric generating machines and certain unmined iron ore property.

Businesses Do Not Want Overvalued Property

There’s very little that a business can do to impact tax rates or property classes, but the proper valuation of a property may result in significant tax savings that can boost the profitability of a company.

In the residential market, increased home values are generally viewed as a positive thing that boosts the net worth of a homeowner. It’s the exact opposite for businesses – a substantial overvaluation of business property can make a company less profitable because it increases the tax burden on the business.

Many tax assessments are outdated or fail to take all relevant factors into consideration. Issues such as hidden renovation costs, pollution or asbestos abatement, and building code changes are often overlooked by Minnesota property tax assessors. These factors may significantly suppress the value of a property tax bill and make a business eligible for a property tax appeal.

The Minnesota tax code is known for its complexity and exceptions, so speak with one of the property tax experts at Robert Hill Law before making any decisions on your Minnesota property tax strategy. Call us at 612-355-8180.