Tips For A Successful Commercial Tax Protest

Commercial Tax Protest

Have you been noticing a sudden rise in the commercial property tax assessment? To be honest, that’s not surprising at some levels. Anyway, the question here is what to do next? What most companies don’t realize is that they have a legal right to appeal the assessment. The tax protest, the right to appeal the tax assessment, can potentially save you and your company a lot of money. When it comes to Austin tax protest or any other county for that matter, there are several things that come into play. The protest is a complicated process, and if not dealt properly, might result in an unpleasant note. To curb the issue, here are some tips to set up for a successful commercial property tax protest in Austin.Have you been noticing a sudden rise in the commercial property tax assessment? To be honest, that’s not surprising at some levels. Anyway, the question here is what to do next? What most companies don’t realize is that they have a legal right to appeal the assessment. The tax protest, the right to appeal the tax assessment, can potentially save you and your company a lot of money. When it comes to Austin tax protest or any other county for that matter, there are several things that come into play. The protest is a complicated process, and if not dealt properly, might result in an unpleasant note. To curb the issue, here are some tips to set up for a successful commercial property tax protest in Austin.

• Understand The Process:

No matter what the situation is, learning or understanding the process is always the best policy. The same is the case with tax protest. Hence, it is always a good suggestion to starts understanding the complicated process of property tax protest. There are several criteria like the deadlines involved. Knowing about the intricacies of the process helps you make wiser decisions.  On the look of it, the tax protest system might look complicated, but an expert can simplify it for you. The most important thing to note is that you have to pay the taxes, or you lose the right to protest.

• Understand The Valuation:

Knowing the correct value of your commercial property is important to gauge the fairness of your property tax. There are certain differences in the valuation of residential and commercial properties. Commercial properties are assessed by either of the following approaches.

1) Income Approach:

Income approach is one of the most common evaluation approaches. Herein, the tax value is based on the income produced by analyzing the net income and value. Typically, the income approach follows the path of the actual net income or market assumptions. It is considered as a reliable market indicator if developed and adjusted properly.

2) Cost Approach:

As the name suggests, the cost approach estimates the cost of the same property after applying all depreciation and including the land value. The cost approach works on the premise that no one would like to pay an excess of the new cost of the commercial property.

3) Sales Comparison Approach:

This approach takes the route of comparing the prices of similar properties recently sold. This will clearly identify the comparative market rates in the case of an open market.
With the knowledge of these methods of valuation, one can know the real value of their commercial property. You can know the method of your property appraisal from the assessor’s office.

• Prepare The Case:

In the matter of an Austin tax protest or a tax protest in any area, it is important to get on to the case as soon as possible. Prepare the documents for your case and you will be ready to face the court of law. Start collecting the required data soon and prepare a thorough case. Moreover, there are some jurisdictions where the deadlines are as short as 15 days. You need to file the protest earlier than the deadline. This is where an experienced Austin tax protest manager can help. Having a professional to help protest tax helps in getting the accurate numbers into the case as well. Try getting pictures or maps to reinforce the case and be as precise as possible. There won’t be much time in the appeal process. Getting prepared before heading out is the best possible approach to the case.

Protesting a commercial property tax can be a complex process, but you can always ask for help. Hiring a tax protest manager who knows the whereabouts of cases similar to yours will surely help. Most managers charge money only if the protest is successful. The idea is to reduce your property tax and take the fees as a percentage of the reduced price. Austin tax protest for your commercial property is a wise decision and you should totally give it a try. You might save some of your hard-earned money.