09 Nov Five tips for lowering commercial property taxes
There’s nothing fun about paying commercial property taxes but most investors accept it as a cost of doing business —just pay it and move on. Contrary to what many believe, there are ways to minimize the commercial property taxes you owe at the end of the year. Here are a few steps to ensure you’re paying no more than you legally owe:
Tip#1: Know what you pay: If you have many commercial properties to manage, you may be missing how much you’re paying on each. The first step in reducing costs is to pay very close attention and know exactly what you are paying in taxes each year for each property.
Tip#2: Pay on time: Late fees on multiple properties can add up rather quickly. If you can’t pay all the commercial property taxes upfront, check on what payment options are available. An installment plan could enable you to avoid costly late fees.
Tip#3: Check with the tax assessor: Do you attend meetings given by your local assessor or other officer who sets tax levels? Here’s another question: Do you even know who your property tax assessor is? If not—it’s time to get acquainted! Learn as much as you can about the way local property values are decided, taxes are set and if you are taking advantage of all available tax breaks.
Tip#4: Appeal: If you feel you are overpaying property taxes, you may have the option to appeal, depending on the tax laws of your jurisdiction. It may take time (don’t expect a refund right away), but if you have overpaid commercial property taxes for several years, you may be due a refund.
Tip#5: Research and document: If you think you’ve been over-assessed, be prepared to back up your claim with research and documentation such as your tax, income and expense reports, a recent property appraisal and anything that you feel could reduce the tax value of the property.
Barsh & Cohen P.C. is a boutique law firm with decades of legal experience. We handle commercial real estate investments with expertise and can assist you with all the legal aspects involved. Contact us to set up a consultation.