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Reduce Your Tax Burden With Commercial Property Tax Appeals

Property taxation is a complex process that involves a variety of factors and can vary by state and even by county. Generally, property taxes are based on the assessed value of a property, which is determined by the local assessor. This assessment is generally made annually and is based on the current real estate market, as well as the condition of the property in question. Property taxes can be a significant expense for many companies and can be a large portion of their operating expenses. With that in mind, it is important to understand the process of appealing property taxes in order to lower expenses and increase profitability.

Property tax appeals provide owners with an opportunity to dispute their property tax bills when they feel they have been unfairly assessed. If a business owner is successful in appealing their tax assessment, they may be able to reduce their tax liability and lower their overall tax burden. If you think your property has been wrongly assessed, here is the appeal process.

Contact a Tax Assessor

The first step in the process of filing a property tax appeal is to contact the jurisdictional tax assessor and request an appeal hearing. Depending on the jurisdiction, the assessor may provide the business owner with an informal hearing to discuss the assessment and potential grounds for an appeal. If the appeal is accepted, the property owner can move forward to the next step in the process.

Preparing the Appeal

The next step is to prepare the formal appeal. This involves gathering evidence to support the appeal and presenting a case to the tax assessor. This may include evidence of a flawed assessment, such as inaccurate property values or incorrect data used to calculate the assessment. The business owner will also need to submit supporting documents and evidence, such as records of market value or sales data, to back up their argument for a lower assessment.

Review and Decision

Once the formal appeal is submitted, the assessor will review it and render a decision. If the appeal is successful, the business owner may be eligible for a reduction in their tax bill. They may also receive a refund for any taxes paid prior to the appeal. In some cases, a business owner may need to take their appeal to the next level. This may involve filing an appeal in court or with an independent tax board. This process can be more complex and lengthy, and the business owner should consider consulting a tax attorney before moving forward.

Property tax appeals can be an effective way to reduce a business's tax burden, but they should only be pursued with the help of a knowledgeable tax professional. Understanding the process and taking the time to gather the necessary evidence can help a business owner maximize the chances of a successful appeal. 

For more info, contact a local firm like the Law Offices of Nicholas A Furia PLLC.