State and local governments raise 17% of their revenues through property taxes. If you own property anywhere in the 50 states or Washington, D.C., you pay property taxes.
The amount of tax collected is based on the value of your property. A property tax assessment happens every 1-5 years, depending on where you live.
If you just had a recent real property valuation, you might find that the value of your property is incredibly high. You do have the right to appeal the assessment. This has significant consequences for your business.
Read on to learn how to appeal a property tax assessment.
Reasons to Appeal a Property Tax Assessment
There are plenty of reasons why you want to appeal a property tax assessment. You might have sold the property and it’s no longer owned by your business.
The tax assessor could have included your personal property with the tax assessment. Sometimes, assessments include duplicate properties.
Carefully read the assessment and note if there are inaccurate property record details. Don’t forget that your property depreciates over time, and assessors include under-depreciated assets.
If your real property valuation seems over the top, you may be protected by state law. Some states have a cap on the amount property taxes can rise each year.
How to Appeal a Business Property Tax Assessment
The appeals process varies from state to state. Most states ask that you send a formal letter stating your intent to dispute the assessment. A few states have you fill out an appeal application form.
This needs to occur between 30-45 days from the date of the assessment. You’ll need to work quickly, and you can’t sit on the assessment.
You may not have all of the information you need before the deadline. Send the letter and then do the research you need to prove your assumptions.
The letter doesn’t need to be fancy. You just need to have a sentence stating that you intend to protest the assessment.
You should also include information about the property, your tax account number, and the reason for the appeal. Sign it, send it, and keep a copy for your records.
You’ll want to get a property tax appeal lawyer to work on your case. They understand the complicated laws around business property tax assessments.
They can review your case and tell you if you have a chance to win the assessment appeal or not. They’ll research the property in question and do the hard work on the appeal. They may have to go to court on your behalf to lower your taxes.
Your business could end up saving thousands in property taxes if you win your case.
Successfully Appeal Real Estate Tax Assessments
A suddenly high real estate valuation could impact your business. You do have some recourse if you successfully appeal the real estate tax assessment.
This article showed you why and how to appeal a tax assessment. You could save a lot of money with an appeal.
For more business tips, be sure to read the other articles on the blog today.