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Every single year, your local government and all the other local governments across the United States request that commercial property owners fill out information about income and expenses. The information that is provided is shared with the board of assessors. That board uses the income and expenses provides to determine the value of your property. In turn, this valuation determines what your commercial property tax will be. It happens in Fulton County, Gwinnett County, Cobb County, and every other county across the state of Georgia.
The Various Types of Commercial Taxes
As the owner of commercial property, you need to be aware of all the taxes that are related to operating and owning your property. These taxes include property taxes, federal income taxes, state income taxes, and local taxes. While we’ll mainly be focusing on property tax today, having a brief primer on each type of tax might be helpful.
- Property Taxes – These are paid to your county government based on your property and is similar to a residential property tax. This is a mandatory tax that you must pay. It should be calculated in your expenses, so you aren’t paying it out of your own money when the bill comes in.
- Federal Income Taxes – It’s required to pay tax on any income from your commercial business. This is based on profits rather than gross income. Be sure to factor this into your expenses, so you are able to pay it each year.
- State Income Taxes – In states with income tax, this is another mandatory expense for you. It’s similar to federal income tax, so take the advice above for ensuring you have the money put aside in advance.
- Local Taxes – Depending on where you operate your business, you may have a city income tax. This may or may not be a business tax, but you will pay the tax based on your own income, so you still need to be sure you are ready for it.
Your Rental Income
When you get your income and expense paperwork, you’ll likely be asked to take your rental income and break it into a few categories. They include: commercial and industrial, rooming houses and apartments, and motel, hotel, bed and breakfasts, and inns. In addition to this information, you will provide information about the property purchase and any changes that have occurred since that time. This might include demolition of a structure or building a new addition. This information is important for your government to decide whether your property value has increased or decreased since the last year.
Your Commercial Expenses
The expenses part of your paperwork is equally important, but this time in terms of you saving as much money as possible. What you want to do is determine all possible expenses that you have incurred while operating the property. While you will find information on the form about which expenses to include, there may be others that are not listed. Everything from agency fees, legal fees, and management fees should be listed. The same applies to insurance, fees for advertising, and payroll. You can list your utilities, cleaning fees, and any supplies. Finally, don’t forget to add in the cost of snow removal, trash removal, maintenance, and repairs.
If you do not include something, you may end up with a valuation that is higher than it should be. That means you are going to be paying taxes that you should not be. Taxes that are unnecessarily high can be a burden on you and make it hard to take care of your property in the best way. If in doubt, add the expense. If it isn’t something that is relevant, the assessors will take that into account.
Determine What You Pay Annually
For those who own one or only a few commercial properties, you probably have an idea of what you pay each year in commercial property tax. Those who have a huge portfolio of properties may not have that same awareness. If that is the case, this is one of the first things you need to chance. You need to know what you pay each year in Fulton County property taxes. This is the only way you can keep up with options you have to lower those taxes with appeals.
Look into Potential Discounts for Early Payments
In some areas, you may get a discount just for making your tax payments early. This may or may not be possible for you, but it isn’t worth looking into. If you are working with a property tax appeal expert, they will have the knowledge to share about whether this is something that would work in your situation. In addition to this, there may be other incentives that are specific to your area. This can save you a bit of cash, which is never a bad thing.
Consider Appealing Your Assessment
You may not know this, but every jurisdiction allows you to appeal your assessment. In Georgia, you only have to pay 85% of your commercial property tax in Fulton County while the appeal is underway. However, if you lose the appeal, you’ll end up paying the amount back at that point. If you win the appeal, which happens quite often, you don’t have to wait for a refund. You’ll already have the money in your pocket to put back in the business. This can be a much better scenario for any business.
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.
