Arm yourself with the facts before you file an appeal on your industrial property assessment. Altus Group dispels five property tax myths about your industrial property.

1. PROPERTY
TAX MYTHS
VS FACTS
5Appealing your industrial
property assessment

2. Industrial properties are hot and poised for continued
growth in the commercial real estate industry.
The demand is fueled by two factors:
1) The e-economy is leaving investors hungry for a
piece of “last-mile” logistics facilities and new industry
is booming. 2) Owner-occupied buildings are revitalizing
communities left behind by industries of the past.
As municipalities look to capitalize on this growth, what
are you doing to minimize operating costs and ensure
you are not paying more than your fair share of
property taxes?
PROPERTY TAX
MYTHS VS FACTS5 Appealing your industrial property assessment
We have taken the
pulse across the country
and our experts have
compiled the following
myths and facts regarding
property taxes and
your owner-occupied
industrial real estate...

3. Value-in-use and market value are not the same.
Value-in-use refers to the present value of future cash
flows to a specific owner for a particular use. Whereas
market value is determined by sale transactions or
leasing activity. A property is only worth what the
market will pay.
Additionally, a value determined for financing, or
insurance purposes, can be markedly different from an
assessed value for property tax purposes.
It is important to understand the valuation parameters
unique to your assessment–which can often vary
between markets. Also, what is or is not assessable can
vary between legislative provisions.
MYTH: FACT:If my assessment
drops, my property
value drops.
Informed and
prudent purchasers
would disagree.
PROPERTY TAX
MYTHS VS FACTS5 Appealing your industrial property assessment

4. Various approaches and considerations can be
used to achieve significant value reductions.
Do your research and access detailed data that
is better suited to assess your unique property.
A strategically pursued case and detailed appeal
submission will give you the best chance of
winning an appeal.
MYTH: FACT:Owner-occupied properties
are often specialized and
expensive to build or
reproduce. The assessed
value appears low, so the
odds of winning a property
tax appeal would be slim.
Cost does not equate
to market value. Typically,
special purpose real estate
does not get a dollar-
for-dollar return on the
open market. By simply
approaching the value
differently, you might
achieve substantial savings.
PROPERTY TAX
MYTHS VS FACTS5 Appealing your industrial property assessment

5. Property taxes are not a fixed expense and
assessment authorities will work with you to
amend errors and revise assessed values for
accuracy. This can result in a reduced overall
tax burden and foster a business-friendly
environment.
You may also benefit from engaging a tax
consultant who has a positive existing relationship
with municipal government and the assessing
authority and knows the ins
and outs of assessment legislation.
MYTH: FACT:My assessment seems fair;
property taxes are the cost
of doing business in any
municipality.
On the contrary, inaction
could hinder your portfolio’s
performance, since property
tax is the highest operating cost
in commercial real estate. It is
possible to save money (and use
it for other business operations)
without jeopardizing municipal
relationships.
PROPERTY TAX
MYTHS VS FACTS5 Appealing your industrial property assessment

6. MYTH: FACT:Property tax can be handled
the same way as sales and
business taxes.
Given the myriad of other
tax types that can occupy
the accounting department,
real estate management may
not be an area of internal
expertise or primary focus.
PROPERTY TAX
MYTHS VS FACTS5 Appealing your industrial property assessment
Property assessments are subjective
and can fluctuate based on:
• The valuation method
• Equity and uniformity with other
properties
• Location
• Special use
Property tax can be described as
a manageable operating cost as
opposed to a tax.

7. MYTH: FACT:Filing an appeal could make
my assessment and property
taxes increase, so it's not
worth the effort.
Do not assume the worst.
Assessors already know
about your renovations and
additions thanks to resources
such as aerial imaging
technology and automated
building permit monitoring.
Money spent does not
necessarily translate to higher
assessed value. However,
the earlier you foster a
relationship with your local
assessment authority,
the better.
A proactive approach to property tax
management can yield significant results and
minimize the risks and potential uncertainty of an
appeal hearing.
PROPERTY TAX
MYTHS VS FACTS5 Appealing your industrial property assessment

8. MYTH: FACT:You are alone when it comes
time to file an appeal.
BONUS MYTH! Appealing your industrial property assessment
You can do it alone, but you
don't have to!
Altus Group can provide you
with the tools and expertise
you need to navigate the
appeal process successfully:
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