If you own real estate whether commercial or residential you have a silent partner. No matter if you have no mortgage and own the property free and clear of debt you still have a silent partner.
Who is your partner? Well, it is your county assessor and the tax collector. The assessor is the one who assesses your real estate at a certain value and gives that information to the tax collector who then figures out tax owed based on the value calculated by the assessor. The assessor uses calculations provided by the county regulatory authority. The name of the authority has different names depending on where you are located.
As a rule commercial property is taxed at a higher rate than homes. Whether you have a business or own a home you should be checking your tax bill every year for mistakes and inaccurate information on your tax bill. I had a two-story home where I was being taxed on a finished attic. I had an attic but it was unfinished. As a result, I appealed my taxes and got a reduction.
I live in the San Antonio TX area where I have gotten 3 tax reductions. Two of the reductions were due to over-assessment.
Most people will not take the time to do the research to see if they are eligible for a reduction in assessment. Time does not allow here to go into the ways to determine if you have grounds for appeal but it is not all that difficult. In 10 years I have reduced my accumulated tax bill by $5,300. Most people complain yet very few will take the time to appeal.
Recently I made an offer on a vacant bar which I was going to turn into two offices, yet the offer was based on the seller appealing the taxes. He refused said he did not have the time. The reduction would have amounted to $2,130 a year. I showed him on paper that there was no way the values were accurate. Because the building was commercial there just was not one tax bill. There were tax bills for the building, furniture, bar inventory restaurant equipment and tax on a mobile home that was not liveable.
If you are not careful you can be taxed out of business. Don’t be passive about appealing your taxes if you have grounds to do so.
If you have questions, please CONTACT ME or we can make a FREE 30 MINUTE CONSULTATION.
Real Estate Silent Partner