Even though property assessments can be subjective, business owners can take proactive steps to prepare themselves for their evaluation and avoid having to file formal appeals.
Accurate tax assessments promote equity and fairness by evenly dispersing property tax burdens across each property owner. Furthermore, accurate assessments ensure that taxes you pay are tied directly to the real value of assets owned.
1. Gather All Documents
As compliance filing deadlines roll off the calendar and property tax assessment season approaches, business owners are beginning to prepare for property tax assessment season. Property taxes can be one of the greatest expenses of running commercial and industrial properties each year and an inaccurately high assessment can have serious ramifications for cash flow.
Tax appeals can be complex affairs, and to ensure success you must gather as much evidence to back your claim that the assessor has incorrectly valued your property. This may involve gathering comparable sales data and professional appraisal reports for your property as well as reviewing municipal assessment rolls to find any discrepancies or discrepancies in valuation.
As well as getting an estimate of what your property is currently worth (its full market value), either from an online real estate site or bank/lender/insurance company – be sure to submit this data with your review form in time for Grievance Day which usually falls on the fourth Tuesday in May in most municipalities.
2. Investigate Your Options
Your property assessment by an assessor is determined based on guidelines and some level of subjectivity; more attractive homes and businesses tend to receive higher valuations while less appealing ones may be undervalued.
Your property taxes are determined by several factors, including assessed value, the tax rate and any exemptions available to you. If your bill has increased since last year, this could be related to changes in the assessed value, exemptions or tax rate of the property in question.
Staying abreast of your jurisdiction’s assessment cycles can help you avoid costly surprises, and staying abreast can be achieved through attending local government meetings, subscribing to property tax newsletters and consulting a professional tax attorney. Businesses should prepare for property tax season by reviewing its assets and looking out for any reasons to appeal such as when an assessor lists assets not listed in its inventory or descriptions that are vague or inaccurate; such situations could give rise to an appeal.
3. Contact the Assessor
As 2018 commences, property tax payers must fulfill compliance filings and deadlines. As each calendar turn unfolds, however, assessment notices will arrive – and if new values don’t meet expectations then an appeal may be necessary.
As part of an informal assessment meeting, it’s advisable to meet with your assessor to review its valuation of your property and establish whether its assessment reflects an equitable share of its market value. State law stipulates that assessments be uniform across residential properties within any municipality; hence your assessment shouldn’t vary significantly from that of other homes within your town.
Understanding how your local board conducts hearings and your options if you decide to file an appeal are also of vital importance. This includes establishing the acceptable tax change threshold as well as gathering all the evidence required for support of your case – the more prepared you are, the higher your chances of success will be.
4. Schedule a Meeting
Property taxes can be an expensive part of homeownership. They’re calculated based on factors like assessed value of your home, any exemptions available to you and local tax rates in your area.
Assessors follow strict guidelines when performing evaluations; however, subjectivity still plays a factor and could result in higher or lower assessments; for example homes with more desirable exterior features are often valued more highly than ones without them.
If you disagree with your assessment, arrange to meet with the assessor to discuss it and request their list of comparable properties and factors that they considered when valuing your property.
If you are dissatisfied with the outcome of your review with the Board of Assessment Review, if necessary you can file for judicial review in Supreme Court by filing a petition known as a tax certiorari petition (sometimes known by other names). As this can be costly and complex process requires experienced counsel at this stage it is crucial that qualified advice be retained at this crucial juncture.
