How An Attorney Can Help You Save Money On Commercial Real Estate Taxes

Posted on: 22 December 2021

Handling the legal side of taxes as a commercial real estate investor can be very difficult, and you may not feel like appealing a tax assessment as a result, but you might be losing a large amount of money by doing so. It makes more sense to hire a real estate tax attorney to assist you.

Have a Proactive Strategy

The majority of real estate investors have a reactive strategy where they only contact a real estate tax attorney when they believe that the state has made a mistake on their taxes. Instead, it is a good idea to work with a real estate tax attorney beforehand to make sure that you can avoid overpaying in the first place.

Make Sure the Property Should Be Classified as Commercial

Real estate is misclassified all the time. Whether a building should be classified as a residential or commercial building depends on the statutes of your jurisdiction. Therefore, you will want to consult with an attorney about whether your building should be classified as a commercial property.

Meet the Requirements of an Appeal

You will need to be aware of the specific rules and requirements of your jurisdiction to be able to meet all the requirements for filing. If you do not fill out all of the necessary paperwork, you will not be able to appeal your case. Also, if you owned property in a different jurisdiction, do not assume that you will have just as easy a time appealing a property tax decision in your current jurisdiction.

Follow Jurisdictional Requirements for Reporting Property

You will likely need to follow requirements for reporting property that is contained within your building. If you do not report the property correctly, this can affect your property taxes. Fortunately, a real estate tax attorney can help you avoid missing anything important.

Make Sure That the Appraiser used the Right Appraisal Method

An appraiser must use the right appraisal method based on the type of property that you have. For example, the appraiser might use a mass appraisal technique when they should use a method that takes into account your individual property and looks at:

  • The age of the property
  • The owner
  • The local market

In many cases, an assessor doesn't have the expertise to properly evaluate the type of commercial real estate property that you have. When your property is assessed properly, you will be less likely to pay too much on your taxes.

Contact a real estate tax attorney near you to learn more.