Protest the value of your commercial property annually. Yes, protest each and every year. Even if the value did not change, protest the value. The assessor’s values are based on the cost approach, the least reliable method of appraisal.
2. Commercial property taxes are one of the largest expenses for
most owners of commercial real estate. The commercial
property tax is charged forever; it is never fully paid.
The government estimates a value each year and extracts money from commercial
property owners unless they appeal. The commercial property tax is essentially a
wealth tax.
3. How to Calculate
Commercial Property Tax
The assessor’s value is just a guesstimate using the cost
approach to value (in most cases). The cost approach is
considered the least reliable method of valuation by licensed
appraisers. Most assessor values are not accurate.
The assessment ratio is 100% in most states. The taxable value
is just the assessor’s guesstimate of value. Some states have an
assessment ratio. The assessor’s estimated value is multiplied
by the assessment ratio to determine the taxable value, or
assessed value.
There are often multiple taxing jurisdictions for each property,
including city, county, school and special districts. The tax rate
is the sum of the tax rates for all relevant tax jurisdictions. You
can do little to impact the tax rate but do much to impact the
assessed value.
01
02
03
4. How to Reduce
Commercial Property Taxes
Protest the value of your commercial property
annually. Yes, protest each and every year. Even if the
value did not change, protest the value. The
assessor’s values are based on the cost approach, the
least reliable method of appraisal. You can protest
both excessive value and unequal value each year.
Protesting unequal appraisal is based on
similar properties having a more favorable
assessed value. Even if your assessed value
is below market value, you can likely support
an appeal on unequal appraisal.
5. O’Connor means property tax reduction with the
right attitude.
The government wants
your money.
You earned it; it is your money.
Let us help YOU keep more
of YOUR money.