How to Reduce Your Tax Bill with a Commercial Appraisal

Do you feel that you are paying an unfair amount in property taxes? If you believe the market value of your commercial property is lower than what the local authorities think it is, you may be looking for a way to reduce your tax bill.

You may be able to appeal your current assessed value and provide evidence of your property's true value. A company that provides commercial appraisals in your area may be able to help. Here's what you need to know.

Appeal to the Local Tax Authority

Obtain the most recent assessment from the local tax authority. Once you have this documentation, you may be able to find clear evidence that things have changed. For example, if your neighborhood is now more run down, this could cause a decrease in value.

You may be able to simply appeal to the local tax authority for a new assessment if you can prove that the original assessment is no longer accurate. A better outcome is not guaranteed, but that shouldn’t necessarily stop your attempts.

Negotiate If You Can

In most cases though, chances are you will receive some pushback from the local tax authority. You may be able to negotiate a lower property value if you can gather evidence in your favor. For example, can you find documentation that other commercial properties in the area have seen a decrease in recent years?

If a pattern of decreasing values exists but your property is still an outlier, you may be able to get the authorities back out to take another look. If your property now has damage from a storm or something else, be sure to call attention to this.

Hire a Commercial Appraiser

If you are getting nowhere with the local tax authority, you may need to get professional help. A commercial appraiser can provide an unbiased and professional review of your entire property. You can present the same evidence to the appraiser but it will be an independent report in the end.

Issues that the local tax authority may not be aware of can come into focus during an appraisal by an outside firm.

For the best chances of success, select a commercial appraiser with decades of experience or just one that is known in the area. If this independent review shows that your property value appears to be less than the current assessment, you now have ammunition that can be to your benefit.

Provide the Report to the Tax Authority

Take your report from the commercial appraiser back to the tax authority and again raise your previous points. The documentation provided by the appraiser you hired might have more weight to it in the tax authority's eyes than whatever you were trying to present before on your own.

Keep in mind that this is a process that typically moves slowly, so be patient. But with the right evidence from the right appraiser, you may be able to get a lower assessment and a lower property tax bill.

Take Your Evidence to a Consultant or Attorney

But what if the tax authority still won't agree to your request even in the face of obvious evidence? In this situation, you may want to hire a professional consultant or real estate or tax attorney. A professional may be able to pressure the tax authority in ways you had not considered.

East Coast Appraisal Service has a longstanding reputation in the area surrounding New York, New York as an expert in commercial appraisals. As Certified Fiduciaries of the Office of Court Administration for the New York Supreme Court, we are often asked for our expertise in court-issued appraisals.

This outstanding reputation can work to your benefit if you believe your assessment is unfair. Contact us for a free quote and lower your tax bill.