4 forms of documentation you need for a property tax appeal

Commercial property taxes are one of the most substantial financial burdens for a company. Due to the number of variables that go into a commercial property tax assessment, real estate owners need to review and appeal property tax assessments annually.

Preparing for a tax appeal

Here are four ways you can affect your commercial property tax assessment in an appeal hearing:

1. Research comparable properties: Finding documentation of similar properties that may have lower tax assessments can go a long way to lowering your taxes in an appeal hearing.
2. Document the property: Providing documentation of the quality of a property, ongoing improvements, finished renovations, and the kind of maintenance that the property requires, can indicate the overall current state of the property.
3. Describe comparable property sales: Information related to the sales of similar properties, going back a few years, can be a helpful tool for assessing the market value of your property.
4. Evaluate income: This approach commonly uses either an analysis of the business’s income generation and expenses (via the property location) or a market analysis with extrapolations for the business. This method can determine the most reasonable market value, as it relates to a property tax assessment.

Making a reasonable argument for your appeal

Conducting commercial property tax appeals should be an integral part of your business plan. Since this process can be complicated and with many consequences for your tax burden, you need an attorney specializing in commercial property tax appeals. Don’t let a sloppy assessment cause your property to be overtaxed. An attorney can guide you through this appeal process.