An Accurate Property Tax Assessment Is Critical To Your Business
Every businessperson and property owner knows that property tax valuations can have a huge impact on a company’s bottom line. Property taxes are one of the primary funding mechanisms for local governments, which is why officials have an incentive to inflate property market values.
That is when you need to reach out to Robert Hill Law for experienced and focused legal help with commercial property tax appeals. Attorney Robert Hill has over 30 years of experience helping to level the playing field between companies and government entities. Every taxpayer deserves equal justice under the law, and we are ready to fight for your property tax appeal. We work on a contingency-fee basis, so you pay nothing unless we win.
Minnesota’s Property Tax Assessment Procedures
Under Minnesota law, tax assessors must assess real property, which includes the real estate and certain fixtures and improvements, at market value for tax purposes. They look at characteristics such as condition, size, special features, age and comparables. The assessor must consider all relevant factors, including market sales and rents.
Minnesota courts have approved three main approaches for determining a property’s market value:
- Market comparison: This property valuation approach bases a property’s value on comparable sales of similar properties.
- Cost: The cost approach to property assessments estimates what a new version of the same building would cost, minus depreciation.
- Income: The income-based approach considers the income that a property is expected to generate to determine the property value of income-producing properties.
Challenging A Tax Assessment
Many clients call us asking what they can do about the tax assessment they think is clearly wrong. We recommend several steps to see if they should pursue an appeal.
- Appraisal: Sometimes hiring a private appraiser brings clarity to the actual value of the property. You want to hire an appraiser with experience in your type of property and with property tax appeals. We can put you in touch with the right professionals.
- Misclassification: Only certain property can be classified as “real property” and taxed as such. Sometimes assessors incorrectly classify certain tools and equipment as real property. Removing these could reduce your property tax.
- Finding legal help: Not all attorneys or law firms are the same. You need to find a law firm with experience in commercial property tax appeals.
Commercial property tax appeals can be complex and frustrating. Let Robert Hill Law answer your questions and help you achieve a property tax outcome that is appropriate and fair.