How to Lower Your Commercial Property Tax
Several businesses often accept and pay their commercial property taxes without challenging them. This is because some of them rarely use the tools and services at their disposal.
Maximizing these resources will ensure that you pay a fair share of your tax after your assessment arrives. More so, you will have access to tax refunds if you follow through with the process. You can always invest the extra money back into your business.
Truth be told, your commercial property tax shouldn’t be a fixed cost. Here are some tips for reducing it.
Take advantage of incentives
Certain jurisdictions roll out incentives, especially if you pay your tax bills early. These incentives can come in front of discounts. The best thing is to understand how tax bill assessments in your jurisdiction work and find out if they offer any incentives.
Evaluate how much property tax you pay every year
Some of the reasons why properties aren’t assessed equitably are sales chasing and data errors. Bear in mind that it’s not always the fault of property owners. As a business owner, pay attention to the amount you pay for property taxes annually.
The next thing is to find ways to reduce it, and appealing your property tax should top your list. This might be difficult if you’re in charge of several properties, but it’s not impossible. It boils down to prioritizing the task.
There are other ways to lower property tax apart from an appeal. You can consider an informal negotiation if the bill is minimal.
Maximize the appeal process
It may be difficult to take advantage of the appeal process if you have no idea of the rules and requirements for commercial property tax appeals in your jurisdiction. If your commercial property is over-assessed, then get all evidence ready.
Try your best to understand the intricacies of the appeal process for a stress-free outcome.
Avoid paying in installments
Even though your jurisdiction may support paying in installments, it’s not usually in your best interests. Nevertheless, it’s understandable that certain situations can call for it. Paying in installments usually comes with extra fees you may not notice initially.
Apart from offering incentives for paying early, it’s likely that your taxing jurisdiction will also provide incentives if you pay your tax bill at once. This is another opportunity to lower your commercial property tax.
Discuss with your local assessor
Establishing a relationship with your local property tax assessor has its perks. For instance, it can give you an edge during commercial property tax appeals.
Endeavor to discuss with your local assessor and prepare all the necessary data regarding your property. These details include the date of acquisition, purchase prices, the type, and the value of your property. Another thing is to research how tax officials assess other properties in your county.
The appraisal district often monitors millions of property accounts, and this can contribute to an inequitable assessment. Therefore, there is a high chance of having an inaccurate property value.
Work with a reputable tax consultant to help you evaluate your property status and get access to Indiana property tax relief services.