Nobody out there enjoys seeing their Gwinnett County commercial property tax come in. Everyone wants to find a way to make the bill a bit lower to make things easier. You may need to budget a large amount of your budget to ensure the taxes get paid, which can be frustrating and upsetting. We wanted to offer you some information about how you can potentially drop your property taxes and see a smaller bill the next time it hits your mailbox. Just the act of reducing this expense can have a positive effect on your bottom line.
Understanding the Market Value Concept
The way your commercial property tax is calculated is based on the market value of the property itself. However, this is not a precise number or determination. The market is constantly in a state of flux, which means the value of your commercial property is also in a constant state of change. However, the advantage is that at any time you are within your rights to contest the value your property is assessed at. This goes to show how subjective the assessment is to begin with.
Are you curious about how to appeal your Gwinnett County commercial property tax? We have some other tips that will set you on the right path to start this journey.
The Importance of Property Taxes
When it comes to retail, multifamily property, and self-storage owners, one of the biggest expenses associated with business is the Gwinnett County property taxes. In many cases, even those who are well-established businesses may not have a full understanding of their rights. This is one reason that having a commercial tax appeal expert in your corner is a fantastic idea. It may cost you a bit of money in the short-term, but it can lead to lower taxes which will pay you back multiple times over the long term.
Property Tax is Not Fixed
While your income taxes are based on a formula and can be seen as a fixed cost, the same does not apply to your commercial property taxes. Because these are subjective, the cost is variable. Many businesses don’t bother to look into how their property taxes can be dropped and instead just pay on time without glancing at the amount. You don’t want to do that if you want to save the most money possible. It’s not uncommon for your tax value to be assessed for an amount that is too high. It’s your job to make sure that is not the case.
Reasons Properties Are Not Assessed Equally
There are numerous reasons why properties may not be assessed in an equal way. It can range from inconsistencies in appraisal board hearing, a focus on sales that have happened recently, or simple data errors. Many districts are appraising millions of property accounts, so expecting each assessment to be correct is a tall order. If one commercial property is overstated and another is understated, that leads to variance between assessments. Some districts have been known to focus on new sales, rather than reassessment, which can cause problems as well. It’s important to take time to determine what the market value of your property is and whether it lines up with the value it is assessed at.
Check Your Listed Jurisdiction
This may not apply to many businesses, but it bears being aware of in case it does apply to you. For instance, maybe you have some sort of equipment that is moved out of your property and stored somewhere else, but you are still paying the taxes at the first property. If it is listed there, you are paying taxes on it being there. In addition, if your property has been moved from a state which taxes personal property to one that doesn’t, you could end up paying taxes you should not be. Another example might be tossing some old equipment that doesn’t work anymore, but still paying taxes on it. Make sure you are listed in the right place and keep a thorough and timely record of your assets.
Consider How You Classify Assets for Valuation
There is a significant difference between personal property and taxable or nontaxable real estate. The problem comes up when things get mixed up. If you aren’t reviewing things properly, you might end up paying for something twice in taxes. When you report property to your taxing authorities, make sure it is classified correctly. As an example, maybe you are asked to list your computer equipment and your manufacturing equipment separately. While computers might have a better tax position, some of your machinery might include computers. You can segment out the amount of the equipment that is computer equipment and get a better valuation on your commercial property tax in Gwinnett County. It can take time and effort, but it can also save you money.
Starting the Appeal Process
If you believe that you are being assessed incorrectly, one of the best options is to appeal the decision. You will want to have plenty of evidence available of the facts within your case. We recommend having pictures of your property, comparable sales data, income analysis, and comparable assessments. If this all seems like a lot of work, it can be. But your commercial property tax expert can help you with a large amount of the work, leaving you to enjoy the results.
If you are interested in more information about property taxes, property tax services, and property tax appeals, Fair Assessments LLC offers resources, answers to common questions, and more. We provide the knowledge needed to handle a commercial property tax appeal in the Southeastern United States.
Those who have questions or would like to speak to an expert can reach us by calling 404-618-0355, by emailing us at info@Fair-Assessments.com or contacting us by the form on our website. We’re available day or night to provide clarification and support.
