The benefits of owning a commercial property cannot be overstated. Unfortunately, owning a commercial property also has another side: costly property taxes. Although most commercial property owners view these taxes as a fixed cost, this isn’t the case. Fortunately, you can challenge and negotiate your commercial property taxes.
If commercial property taxes have been eating into your profits, consider taking the following steps:
1. Know how much you’re paying per annum
If you’re like most commercial property owners, you may have never considered your property’s assessed value and the amount you pay per annum. If you have a large real estate portfolio, you may not have the time or expertise to examine your bills. However, if you notice that the numbers aren’t accurate, ensure you visit your local assessor’s office and file a petition for a hearing.
2. Pay on time to avoid extra fees
You can pay commercial property taxes in two installments per year. Remember, however, there are penalties for paying your tax bills late, and they can accrue quickly. Make sure to keep your eyes on the bill so that the taxes are paid timely.
3. Visit your local assessor
Create time to visit your local assessor and educate yourself more about your properties. Your local assessor will help you learn how much your properties are worth and how properties within the same jurisdiction are assessed. This information can help determine if your commercial buildings have been overassessed.
4. Make use of the appeals process
Commercial property taxes are based on the value of the property. Therefore, if your taxes are high, you should first determine the value of your property and compare that against the assessed value on the tax statement. You should appeal if the appraisal value is lower than the assessed value.
You can use the above tips if you feel your commercial property taxes are too high. But unfortunately, the process of reducing commercial real estate taxes can be complicated. Therefore, consider seeking legal guidance to increase your odds of success.