Effective Appeal of Fulton County Property Tax for Commercial Property

Posted by Jill Noelle Olandria on Sep 17, 2015 11:30:00 AM

The national drop in commercial property values may have partly contributed to the increase in commercial property tax appeals. This appears to be happening where the Fulton County property tax appeals are concerned.

If you are planning to file an appeal against your property assessment, you have to be ready with the more aggressive approach taken by the county government. This is understandable considering that the tax collections and resources of the government will be affected, whether you win or lose your appeal.

Fortunately, you can also counter the aggressive approach with your own effective approach. The trick is in not becoming intimidated by the entire Fulton County property tax appeals process as well as the people behind it. Otherwise, you may have to settle for the high property valuation and, hence, high property taxes.

Fulton_County_Property_Tax-2

Learn the Process

Even when you decide to hire a tax consultant or a tax lawyer to your cause, you must assume the responsibility of learning the tax process. Keep in mind that it is your property and your property tax bill at stake, thus, your involvement in the process is important even when you have professionals handling the nitty-gritty details.

You need not learn the ins and outs of the process but it pays to know the basics. At the very least, you can make smarter decisions about the next actions where the Fulton County property tax authorities are concerned. Your tax consultant will be able to discuss your options, too, in a more effective manner because you already know the basics.

Understand the Valuation Criteria

You should also know the valuation criteria used in the valuation of your commercial property. Check with the Fulton County property tax authorities about the valuation criteria and method used since it may change from year to year or it may be different for the various types of commercial property.

In most cases, the cost and income valuation approaches are commonly used for commercial property. First, the market-derived cost approach typically follows the formula:

          (Replacement Cost of New of the Improvements - Depreciation) + Land Value

Just be sure to check that your property description is correct. Otherwise, the assessed value will not be a reliable indicator of its true value for tax purposes. Quality of construction and depreciation percentage are both points of argument in this approach.

Second, the income approach has the following formula:

          Net Operating Income/Capitalization Rate

The capitalization rate refers to the market-derived overall direct capitalization rate. When the approach is properly calibrated, it is a reliable indicator of the market value. It has specific applications in income-generating commercial property within a mass appraisal system. Income, expenses, and capitalization rates are all points of argument in this approach.

You and your tax consultant should closely look at the valuation method used. You will likely find the weapon, so to speak, that can be used when appealing your tax assessment.

Take Responsibility for Documentation

If you are the one filing the appeal, you have the burden of proof to support your targeted property value. You should then have sufficient documentation about your appeal including property cards, photos and past valuations, among others. Alternatively you can let your tax consultant and his staff members handle the matter. Your signature will likely be required on some of the documents, so you must be aware of each one.

Ultimately, the Fulton County property tax authorities will require effective persuasion to change their original valuation so be prepared for it.

property tax appeals

Subscribe to our A Fair Shake Blog:

How Tax Assessors Use Sales to Value Property
HOW TAX ASSESSORS USE THE COST APPROACH TO VALUE PROPERTY
New call-to-action