Property Tax Appeals

What we do in a property tax appeal?
Normally your local Assessor determines the Fair Market Value of your Real Estate.  Your Real Estate Taxes amount is based upon this valuation.  In the appeal process we collect information supporting a lower valuation for your property which we use to negotiate with the assessor.

How is the Fair Market Value Determined?
There are numerous approaches to determining property values, especially with commercial property in volatile real estate markets.  This leaves room for discussion regarding values and allows for the possibility of compromise on the agreed upon price on the part of the assesssor.

What are the primary considerations in determining value?

There are three primary methods used to determine value:

1.  The Cost approach after depreciation.  We provide evidence to support higher depreciation factors.

2.  The Income approach.  We negotiate capitalization rates as well as providing information regarding lower income rates for properties in today‚Äôs market.

3.  Market Comparables or comparisons to similar properties with adjustments for differences which affect value.  We negotiate adjustments to similar property prices as well as offering alternatives to the comparable properties.

What are the primary appeal opportunities?
Definition of real vs personal Property (in some states)
Building Characteristics-age, size,condition etc.
Valuation Basis-in-use
Market approach-comparability of the property-capture current market downturn?
Cost of replacement-replacement model accurate?
Government restrictions on operations and how they affect valuation
Income looking at Net operating income including a vacancy adjustment-
Capitalization rates- a 1% change in capitalization rates can have a large impact on valuations.
Taxable Inventory-only a raw material-vs WIP
Statutory exemptions- Software, pollution control assets, tooling in some states
Local abatements-exemptions given for to local businesses  for expansion
Personal Property Opportunities-a review of Fixed asset lists uncovers assets no longer present
Valuation breaks-classification of assets determined in facility tours

What is the key to a successful Appeal Process?
The key to success is good evidence.  After an informal discussion with the assessor a formal appeal to the County Board is made.  Deadlines are determined by location.  Evidence is presented to the Board at an informal hearing and negotiations continue until agreement is reached.


To Request Information, Contact Us or call us at 800-598-5587.

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