Did you know that Dekalb county commercial property tax comprises a significant percentage of the total costs of business operations? The property taxes can, in fact, be as high as 40%. This is sufficient reason to take a close look at commercial property taxes so that these can be reduced.
Commercial Property Defined
In property taxation, there are two types of property – residential and commercial – with each type being assessed and taxed in different ways. Keep in mind that commercial property is primarily used in the generation of income in various forms including but not limited to:
- Rental income from leases on residential and commercial buildings (e.g., apartments, condos, and shops);
- Retail sales
- Professional services
- Agricultural production
So, when you lease out your second home to a tenant for a certain period each year, you should declare it as commercial property. You will then receive a bill for a commercial property from the Office of the Tax Commissioner, a responsibility that must be complied with. You can also appeal the assessment value on your annual notice of assessment, if you believe that your property has been unjustly or inequitably valued.
The factors used in the value assessment of commercial property include:
- Size and location
- Age and construction costs or purchase price
- Type of improvements including repairs and renovations made
- Desirability including proximity to residential and commercial areas
- Restrictions and actual utility
- General economic conditions including comparable sales prices
- Present values of revenue streams
- Best and highest possible use
Your Dekalb county commercial property tax reduction consultant can go into more details about these factors. When you have a deeper understanding of these factors, you can build a stronger case for your appeal. You will find that even seemingly small errors can cause large increases in your taxes.
The Reduction of Commercial Property Taxes
Fortunately, you don’t have to live with high property taxes. You have several things within your control that you can actually do to fight it.
- Hire a property tax reduction consultant well-versed in your specific industry. You can’t hire a tax consultant, for example, with expertise in homes for-rent appeals when you’re in the hotel sector. The valuation methodology and influential factors, among others, will be different between the two sectors.
- Gather the information necessary for making your property assessment appeal. You – or your tax reduction consultant – can do so by checking the property tax cards, getting comparable sales data, and asking for information from the local tax authorities.
- Organize the information in a manner that will increase your chances for a winning appeal. You should approach it as if you’re preparing for a court case in that your evidence should be persuasive. You shouldn’t be too complacent even when you know that the local taxing authorities have the burden of proof.
Your chances in reducing your Dekalb county commercial property tax will largely lie in your willingness to be an active participant in the appeal process. Increase your chances of winning by hiring Fair Assessments, LLC.
