Whether you’re running a local business or operating a large-scale industrial facility, you understand just how costly commercial property taxes can be. Many individuals simply look at their tax assessment and assume it’s indisputable. After all, everyone has to pay taxes, so it’s easy to assume that an assessment is the final word on the subject.
Fortunately, your property tax bill is the only bill you get all year that is negotiable.
It’s common for people to believe that high property taxes are simply contingent on living in certain areas. This belief relies on the fact that local municipalities dictate the base tax rates. However, commercial property owners need to realize that not everyone in an area shares the tax burden fairly.
There are ways to get a property tax reduction regardless of your location by proving that your specific property has been unfairly assessed compared to your neighbors.
The Price-Related Differential (PRD) in an area is a financial index that reveals whether local appraisals are progressive or regressive. Progressive appraisals mean that high-value properties are routinely being overvalued by the county's mass-appraisal computer models. If this is the case, you could be shouldering an unfair tax burden relative to other taxpayers in the area.
If your property is being progressively overvalued, it means you’re paying far more in taxes than you should be. Regardless of the specific use of your commercial property, this is cutting directly into your bottom line.
The question of when to hire professional property tax protest services is a complex one. The fact is that some people are going to pay higher taxes than others—it makes sense that someone with a higher-valued, newly renovated property would have to pay more.
However, if you think your property was assessed unfairly based on its age, condition, or income-generating potential, it is time to ask for a reassessment.
The reality is that nearly 60 percent of properties in America are over-assessed. All other considerations aside, the likelihood that you’re paying too much in commercial property taxes is already incredibly high. While professionals use complex measures like the PRD and the coefficient of dispersion (COD) to prove unequal appraisal in court, the core concept is simple: if the county got it wrong, you should challenge it.
It’s important to note that you cannot challenge a locale’s base commercial tax rate. This is set by law. You can, however, challenge your property’s assessed value, which dictates how much of that rate you have to pay.
If you are certain your property is overvalued, you must file a formal Notice of Protest before the county deadline. This will trigger an informal hearing, and eventually, a formal hearing before the Appraisal Review Board (ARB).
Unfortunately, commercial property taxes are a highly complex issue. You must present hard, market-backed evidence (like income statements, repair estimates, or independent fee appraisals) to win a reduction. The powers that be may decide there’s no justification to adjust the appraisal unless you can definitively prove them wrong.
Because commercial valuation is so complex, many business owners end up paying far more than they deserve. It is highly beneficial to find a dual-licensed property tax attorney to handle your appeal.
PropertyTaxes.Law can analyze your assessment, build your case, and represent you at the ARB hearings—with no upfront fees.
Start Your Commercial ProtestBrandon and his team have proven they can perform with any product type we give them,
from industrial and office property to single and multi-family residential.
At a critical time when a property was in lease-up, we were faced with an unreasonable and unjustified assessment.
Brandon’s tenacity and responsiveness resulted in a fair assessment and the largest value change I've seen in my career.
Outstanding!! These guys are pros - they are great at what they do and great to work with.