Your Trusted Midwest Property Tax Advocate

Changes in working habits may mean your property tax is too high

On Behalf of | May 16, 2022 | Property taxes |

Until a couple of years ago, there was a high demand for city center office space. Owners of those commercial properties could expect to charge a considerable amount of rent to companies desperate to place themselves in central locations.

Then it all changed. Once people were forced to work from home, many realized their daily commute was an expensive waste of time. Likewise, many companies realized that employees they never fully trusted before still produced when they did not come into the office.

While some workers have had enough of home-working and want to return to the office, and some companies insist their workers do, there has been a significant and probably permanent shift. Many now realize the best balance lies somewhere in the middle, with employees splitting their work-life between home and office.

Hence there is less demand for office space than there previously was. One report estimates a 25% drop across the country. Therefore some commercial property owners may be left struggling to attract the rents they previously received.

Commercial property tax depends in part on the income the property can generate

If that is less than before, you are right to ask if your tax bill should drop to reflect this. Some local governments are more reliant on commercial property tax than others, yet all depend on it to fund their expenditure. Hence they may ignore your new reality and continue to charge the same or increased property tax rates despite a demise in the value of your real estate. If this happens, do not assume you have to accept it. With legal help, you may be able to build a case to challenge them and get your property tax reduced.