Every year, businesses receive property tax notices that are ignored at great cost. Tax is assessed on real estate and any property used for business purposes, including equipment. Despite time constraints, you can take simple steps to reduce your property tax assessment.
Obtain information about the market value of your property by checking on any recent sales. Contact equipment dealers to inquire about resale values for used equipment. Ask your banker about prices paid by anyone who has financed the purchase of similar equipment. Use the Internet to find listed prices for your assets. Maintain contact with a commercial real estate broker. This person can provide you with reasonable valuation per square foot for a building you own.
Compare your tax assessments with others. Check with your neighbors about their real estate assessed values. Talk with competitors about whether their equipment assessments approximate yours with some variation for age and condition. Contact your industry trade association about current used equipment prices. You may want to start a local association among similar businesses. All the members could benefit by maintaining reasonable property tax assessments.
You can file a property tax appeal. Sometimes this only requires a call to your local tax office or using a reply form that comes with your assessment notice. A successful appeal that reduces business property taxes requires collecting details about replacement costs and income produced by the assets. There are services that conduct appeals or appraise business assets for a fee. Sometimes they’re worth considering.