It is common for people to be hit with a surprising amount in commercial property tax. This is one issue many people go through every year, and the biggest concern is how to avoid this. For anyone who has been paying an insanely massive amount on commercial property tax, it is time to begin protesting. That way, one can ensure the assessment of the property value has been done correctly. Alongside that, here are some of the reasons for commercial property tax protests.
The Assessor Valued the Property Twice
Also called double assessment, one may protest commercial property taxes if the assessor valued one property twice. This costly mistake may occur due to clerical errors in the taxpayer address or name. So, whenever this happens, it only makes perfect sense to protest the taxes.
Under-Depreciated Assets
The more depreciated an item must be, the less value it has, which will mean less tax. The worst part about this is that it can lead to a case where some personal properties are under-depreciated. Often, this is common when the assessor doesn’t have a clear understanding of the assets.
Inaccurate Property Record
Another reason why one may be forced to protest commercial property taxes is when the property record is inaccurate. Such records usually lead to an inflated valuation. Some of the erroneous property records one should be wary of include land acreage, construction year, and building features.
Unequal Property Valuation in the Same Jurisdiction
One may also be forced to protest commercial property taxes because the property valuation isn’t similar to other properties in the same jurisdiction. For instance, a restaurant may be valued 50% higher than another similar premise located just a mile away. If that is the case, then it could be reasonable to consider commercial property tax protest.
Unreasonable Property Value Increase
Another typical instance usually involves the value of property increasing more than the previous year. For example, it can be unreasonable when a property value increased by 5% over the last year. Often, some states have limits that a property value cannot increase by more than 2% every year. Unless there is a change in ownership, the property tax appeal letter should be warranted.
Valuation Included Personal Property the Owner No Longer has
A lot may happen within a year and will influence how one pays property taxes. A property owner might have sold assets, moved assets, or discarded some assets. If one moved the help, it means they still own them. However, they shouldn’t be included in the original location. Instead, the transferred assets should be assessed as part of the new location’s valuation.
Valuation Includes Assets Owned by Another Person
In some cases, one may be on the line for the personal property they possess but don’t own. A perfect example is a leased item. The assessor may at some point include a leased item when evaluating a property. But in a real sense, the leasing company should be responsible for paying taxes. A commercial property tax protest can help bring such issues clear and direct.
