Property Tax Appeal Blog

Appealing Commercial Property Taxes in Gwinnett County

Written by Daniel Jones | Jan 15, 2025 10:00:00 PM

While the general appeal process for property taxes in Gwinnett County, Georgia, is the same for residential and commercial properties—a 45-day deadline, appeal to the Board of Assessors, followed by the Board of Equalization (BOE) or Hearing Officer—there are important differences and strategic considerations specific to commercial properties.

Key Differences in Commercial Property Tax Appeals

Valuation Complexity

Commercial properties are often valued using methods like:

  • Income Capitalization

  • Discounted Cash Flow (DCF)

  • Sales Comparison Approach (if reliable comps exist)

These valuations consider:

  • Lease terms

  • Operating expenses

  • Occupancy/vacancy rates

  • Market segment (e.g., office, retail, industrial)

 

Income-Producing Potential

The property’s income-generating capacity is central. Appeals often target:

  • Inflated income projections

  • Incorrect capitalization (cap) rates

  • Unrealistic expense assumptions

 

Market Data Limitations

Unlike residential properties, commercial comparables are harder to find. Appraisers and assessors rely on:

  • Specialized databases (e.g., CoStar, LoopNet)

  • Industry reports and surveys

 

Highest and Best Use

Appeals may focus on whether the county assessed the property based on an alternate use that is speculative or impractical. Arguing for a lower "highest and best use" requires detailed market and zoning analysis.

Professional Representation

Given the complexity, most commercial owners retain:

  • Property tax consultants

  • Real estate attorneys

These professionals handle valuation modeling, market research, and hearing representation.

Hearing Officer Option

For non-homestead real property valued at $500,000 or more, the owner may opt for a Hearing Officer instead of the BOE. The Hearing Officer is a state-certified appraiser and focuses solely on value and uniformity.

Strategies for Appealing Commercial Property Taxes in Gwinnett County

Thorough Due Diligence

  • Request Full Assessment Data
    Get the county’s valuation worksheet, including income models, cap rates, and comps.

  • Review Actual Financials
    Compare the county’s income/expense assumptions to your actual operating data.

  • Gather Market Intelligence
    Use commercial data sources to find:

    • Cap rates

    • Vacancy/lease rates

    • Comparable sales or rentals

    • Property trends in Gwinnett County

 

Engage Expert Help

  • Property Tax Consultant
    Offers data analysis, strategic valuation modeling, and expert testimony.

  • Real Estate Attorney
    Especially helpful if the appeal progresses to Superior Court or involves legal interpretations of highest and best use or uniformity.

 

Focus on Valuation Methodology

  • Challenge County's Income Projections
    If rents or occupancy are overstated, show evidence from leases or rent rolls.

  • Critique the Cap Rate
    Argue for a higher cap rate if market conditions support it (higher cap = lower value).

  • Review Expenses
    Show that your actual operating expenses are higher than the county’s assumptions, especially if you're under net lease or managing significant maintenance costs.

 

Use Strong Comparable Data

  • Find Legitimate Sales Comparables
    Adjust for differences in:

    • Building age/condition

    • Location (e.g., proximity to I-85 vs. local arterials)

    • Lease terms (NNN vs. full-service)

    • Occupancy levels

 

Highlight Property-Specific Challenges

  • Vacancy Issues
    Provide tenant turnover history or sustained vacancies to argue reduced income.

  • Physical/Environmental Problems
    Document deferred maintenance or environmental liabilities (e.g., asbestos, stormwater compliance).

  • Lease Restrictions
    Below-market leases or non-transferable lease rights can reduce value significantly.

 

Make a Uniformity Argument

If similar commercial properties are assessed at a lower value per square foot or with more favorable assumptions, this can form the basis for a "lack of uniformity" appeal under Georgia law (O.C.G.A. § 48-5-311(e)(1)(B)).

 

Be Prepared for Multiple Appeal Stages

  • Board of Assessors Review
    Initial review of your documentation.

  • Board of Equalization or Hearing Officer
    A quasi-judicial hearing with evidence presentation.

  • Superior Court
    A possible final appeal if results remain unsatisfactory.

 

Conclusion

Appealing commercial property taxes in Gwinnett County is not just about paperwork—it's a strategic, data-driven process. Focus on income potential, realistic market conditions, and comparables. Engaging experienced professionals and leveraging credible evidence are essential to a successful appeal.

 

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