You probably know commercial property tax if you’re a business owner with a building, land, or property. A property tax assessment has many details to consider, from how the property is assessed to dealing with tax auditors (or sometimes) and even appearing in court.
While some businesses choose to handle their property taxes without a consultant’s help, others seek expert advice to minimize tax burdens and comply with local laws. This article explains how a property tax consultant can help your business save money.
Table of Contents
Expertise
A property tax consultant is a real estate valuation specialist. In a valuation, there are three main methods to value: revenue approach, sales approach, and expensive approach. Your property tax experts should be well-versed in each process and how it will help your particular case.
Efficiency
Most property owners feel they should handle their taxes on their own. While some people are specialized in this area, many others make errors and miss deadlines. Employing a property tax consultant will help you discover some of the areas that you may have overlooked on your own.
You should hire a professional to help you analyze values, file complaints, and plan valuations, among other things. Most importantly, the consultant can complete these tasks while adhering to the required deadlines.
Effective in Litigation
A property owner can become entangled in a valuation dispute that normal institutional processes cannot settle. A property tax consultant may help an owner or property manager in this case by providing helpful advice in the litigation process. In this case, the consultant is in charge of protecting the taxpayer’s interests and recommending remedies available under the Property Tax Code.
Property Tax Reduction
Property tax reduction consultants will help you save money on your property taxes every year. Working with a property tax consultant will help you take advantage of every property tax write-off that might apply to your business. Working alongside someone who understands the legal aspects of taxation can help relieve some of the burdens of knowing the write-offs available to you.
Experience
Above everything, a property tax consultant must leverage their years of expertise to guarantee that the property tax matters are handled appropriately. In any property tax situation that might arise, an experienced property tax specialist may provide a range of both traditional and innovative solutions that can be helpful.
Strategic Communication
Working with a valuation specialist often provides the additional benefit of their in-depth understanding of valuation principles and expertise in communicating with assessors. Consultants have worked with tax assessors previously and can advise clients about how to better present their cases to taxing jurisdictions and how to approach or negotiate with them.
Industry Knowledge
Consultants have a deep knowledge of various industries. They are not only knowledgeable about property taxation, but they also often work in specific fields and are familiar with the nuances that affect them. Consequently, they get a bird’s-eye view of what’s going on in the market and within a given state’s legal framework.
A consultancy may also work with internal experts to find nuances of asset valuation, such as the effects of technological advances or other industry-specific problems that can reduce your properties’ value but are not detected by the tax assessor.
What to Consider Before Hiring a Property Tax Consultant?
Undoubtedly, not all tax advisors are alike, and you should make sure that the one you appoint has the qualifications to help you get the highest potential tax reduction. You can choose your tax advisor based on several factors, including the ones that follow:
- Your tax consultant must have years of expertise in industrial property taxation.
- The consultant should be intimately familiar with the mass valuation property evaluation system, along with its many flaws and how they impact your taxes.
- He or she may have a track record of lowering taxation for real estate owners – request evidence and references, and then follow up with certain people or businesses to confirm.
- Your tax manager should be honest on how much money you should hope to recoup from your taxes. Be cautious of contractors who promise large sums of money.
To Sum Up
And even if the consultant has all of these skills, you should speak with him or her in person before hiring him or her. Discuss the situation with the consultant and take his or her advice. Choose another consultant if you don’t feel good with them.
Eventually, by challenging your value with your county tax evaluator, having a tax consultant will save you a substantial sum of money on your taxes. That being said, selecting the best consultant is essential.
Look for proof of expertise and extensive experience, as well as double-checking all references. The best specialist will help you improve the result and reduce your tax burden, but the wrong one can be a waste of money.
