Does your commercial property in Florida seem to have higher property tax than you feel it should? There is always a chance that you could be paying a bit more than you should be on your taxes. These are not a fixed cost, like an income tax. Instead, it is subjective and variable, which means the tax assessors who determined the value of your commercial property could actually have it wrong. They might have valued the property too high, which means you really are paying more in taxes than what you truly owe.
Understanding the Valuation of t
he Property
It is possible to lower your Florida property tax on commercial buildings, but you will want to make sure you have a good understanding of what factors the assessors consider when they come up with this value. Each jurisdiction in FL will have a report that can provide you with information on what factors they consider when valuing a property.
Some of the elements that can affect the value of the property include the location, the size, the equipment that is on the site, the type of property it is and whether there are vacancies. For example, vacancies could affect the taxes on a lot of land with stores that you lease to other businesses.
Cost and income valuation methods tend to be used when determining the value of commercial properties, particularly with mass value appraisals. Therefore, it is important to become familiar with how this works, or to get in touch with a professional who can help you. A simple formula used to determine this is the net operating income divided by the capitalization rate will equal the market value.
However, this method, and other methods they use, might not tell the entire story. You may find that the true value of your property is less than what the Florida property tax assessor finds. If that is the case, you need to know what to do next.
Understand the Difference Between Commercial and Residential Property Taxes
It is important to understand that commercial properties are generally going to be taxed at a much higher rate than a residential property. Therefore, there tends to be quite a bit at stake financially when it comes to your property taxes for a business. In addition, a residential property will have its value determined, in part, by the value of comparable properties in the area. This is different from the method of valuing a commercial piece of property, mentioned above.
If there is an error in the property taxes, it could mean you are spending thousands more than you should be. It is important to make sure that you are looking into your assessment and questioning everything and anything that seems incorrect, as it can make a serious difference in your finances.
When the Taxes Are Too High
If you believe that you are paying more than you should be for your commercial property taxes, you will want to be sure to get in touch with the local property tax assessment office in your area to let them know. Their information will be on the assessment letter that they provided for the company.
When you approach the Florida property tax assessor, you will want to make sure that you take the time to gather information that backs up your case. For example, if the tax assessor was factoring in the value of equipment that was on the property, but that equipment has not been on the property for the entire year or period when the building was accessed, the valuation could be wrong. They could have the size wrong, as well. You will find many potential errors and problems that could cause the valuation to be incorrect.
Make note of those problems, have the information and data needed as evidence, and request a review. In an ideal world, they will look at the information, agree with you, and make the changes to your assessment. However, we all know that we do not live in an ideal world. Sometimes, they will not agree, and you will need to then file an appeal.
Talk With a Professional
The appeals process can take a bit of time, and it has the potential to be quite confusing. While you might want to try to tackle this problem on your own, it tends to be a good option to spend some time instead working with a professional. They can appeal commercial property tax assessments for you, and make sure that the process is even worth your time. Even though you might feel that you are paying too much in taxes, these professionals can provide you with an honest and unbiased review. If they also believe that your property valuation was too high, they can go through the appeals process.
Since they have experience in the area, they can often provide you with some additional insight into how it is all going to work and how much time it might take. Different counties, for example, might have different “average” times for an appeal. Of course, the number of appeals being filed will also play a part in just how long the entire process takes.
Because the appeals process can be frustrating, you will find that working with a professional who has experience in this field will provide you more time to dedicate to other aspects of running your business. Instead of worrying about getting all of the paperwork handled on time and providing them with all of the best evidence, you can simply hire a professional to take care of this for you.
Just take the time to make sure you are working with someone who has experience working with commercial properties and who truly understands the inner workings of a tax assessor’s office. Keep in mind that not all companies have experience working with commercial buildings. You must find those who have the knowledge that you and your business need and deserve.
