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Have you ever stepped away from your mailbox with your property assessment in hand, only to wonder if there’s any way you could pay a little less? The truth is that in many cases, the answer is a resounding yes. A property tax appeal can be a great option for many people and businesses both. However, there may be some cases where appealing your Clayton County assessment isn’t worth the effort. We’ll offer some tips to help you determine the best way forward.
First You Need to Consider the Numbers
The first thing you want to think about is what costs you will incur if you do choose to appeal the assessment. The largest cost can come down to reviewing your property assessment to make sure it is accurate and preparing your appeal for properties with your property tax consultants. While you can start with compared this year’s assessment to the one from last year, this isn’t always enough. If you own a business or multiple properties, you may need to do some substantial valuation tests.
It all boils down to the property that you are considering appealing the assessment for. It might make more sense to appeal your higher value assets than those that are worth much less. However, that isn’t always true. We’ll share a few options below for determining whether the appeal is worth the time and money or not.
Commercial Buildings Bringing in Income
If you own commercial buildings that are income producing, the first place to look is at interest rates and lease rates. If you notice that lease rates are unmoving or down or your borrowing rates are up, the value of the property has likely declined. With interest rates rising as of late and rents often falling in major cities, this may mean you have a case for a Clayton County assessment appeal. However, if the opposite situations are in place, you may want to reconsider appealing the assessment.
If this doesn’t give you enough information to make a decision, look at your expected income growth rate. If these are slowing and interest rates are rising, this often speaks to a lower value on your properties. All of these things can give you an idea of which way to go. However, you may need more detailed data and the help of property tax consultants who are familiar with your area.
Personal Business Property Options
When it comes to your business personal property, the assessment isn’t done the same. The assessors in Clayton County will use a depreciation schedule to decide what the value and taxes are for your property. Rather than using the methods above, you will want to think about the rate at which your properties are depreciating and how the assessor’s schedules are keeping track of these things.
If you find out that your business property is depreciating at a quick rate, this can be a fantastic time to consider an appeal. The assessor often does not use abnormally high depreciation rates in their valuations. As long as the property is an asset or equipment that hasn’t been improved, it should depreciate year after year. This means your property assessment should also decline every year. However, there are other reasons for depreciation, which we’ll explain below.
Functional and Technological Obsolescence
When we talk about functional obsolescence, this is a situation where depreciation occurs because there are inefficiencies operationally with the asset if it is compared with a replacement. Technological obsolescence, on the other hand, is when a piece of technology that you own is made obsolete. This may happen if a new version comes on the market that is more useful or even less expensive than the version you have.
Dig Deeper into the Details
If you are still having questions about whether to appeal your property tax assessment, there are a few things that might help. The first are hired property tax consultants or other experts. These individuals know the area you are in and know the ins and outs of the assessment, property tax, and appeals processes. You can often get great insight just speaking with an expert and having one on your team for an appeal can make it more likely that you will win the appeal. The expert you choose in Clayton County will help you determine the reason for the appeal, assist you in gaining the documentation you need and be sure you meet all deadlines in place.
Beyond that, having property tax software can help, whether it’s your own or your property tax consultants’ software. With this type of system, you can see how properties depreciate over time automatically. The software will take into account whether there have been new investments on your assets. You’ll also find that filing a return is easier since many of the calculations that you would do by hand are handled by the computer. If you aren’t sure your assessment is accurate, you can try different valuations in the software to determine which might match the numbers you got in the mail.
Getting Ready for the Appeals Case
If you have decided that an appeal is in your future, you want to have the proper documentation to show your case. This is something the expert in your corner can help with. Make sure to get guidance in the process, so you have the best possible chance of winning your appeal.
For those who need more information about property taxes, services, and appeals, you can count on Fair Assessments LLC. We provide answers to common questions, various resources, and much more. Our website provides all the knowledge you need to appeal your property tax assessment in Clayton County.
If you have questions or want to speak to a professional, you can do so by calling 404-618-0355, emailing info@Fair-Assessments.com, or contacting us by the form on our website. We’re available day or night to provide clarification and support.
