Lower Your Taxes

Factors That Can Help Lower Your Taxes During Uncertain Times

The current economic climate has dramatically altered the commercial real estate market, possibly permanently. But how does that affect your property taxes?

Knowing how to quantify and apply regional and industry specific changes to estimate true market value is what PVS specializes in. Now is the time to consult an expert to be sure you only pay your fair share.

How Is Property Tax Calculated and Collected?

There are two main components to your annual property tax bill: value and tax rate. Your property’s market value is first estimated by the local assessor, who transfers it to the tax collector, who mails the bill and collects tax.

So how does the assessor estimate your market value?

Cost

What would it cost to purchase land and build the current structures, less depreciation?

Sales Comparison

 Utilizes nearby, recently sold comparable properties to estimate the potential sale price of the subject property.

Income

Estimates a property's market value today based on its future cash flows (NOI or market rental rates divided by capitalization rate)

Review Every Property - Our Motto

The current situation has caused significant declines in many industries and property types.

While several real estate sectors have seen a decline due to the recession, a few are chugging along just fine, or are even experiencing growth. Warehouse, industrial and distribution property values are on the rise. Is it worth reviewing and appealing your property tax assessment? Yes.

Local tax assessors typically rely on the sales of similar, nearby properties to estimate market value on these types of buildings. But not all sales are equal. Portfolio sales to investment firms and REITs, 1031 exchanges, and sale-leaseback transactions aren’t always indicative of true market value. And sales aren’t the only approach to estimate real estate’s worth. Let an expert in property tax appeals review your specific property. If an appeal is warranted, PVS takes the burden off you, handling all paperwork, evidence preparation and negotiations with the tax assessor, to lower your 2021 tax bill.

Is Your Property or Building Obsolete?

Our current situation has been a catalyst for change in consumer behavior: the way we work, live, shop and entertain. Some of these changes will impact property values for a year or two, while others may become permanent. “Curbside pickup” is a potentially permanent change affecting how we shop online vs. in retail stores and how we obtain our groceries. Extended and permanent work from home arrangements are driving changes in both the office and housing market. Social distancing and delivery of in-home entertainment may lead to the extinction of movie theaters and other forms of indoor entertainment.

If current and future market changes affect the use, layout or demand for your business or building, you may be facing obsolescence: a form of depreciation

Talk to an appraisal expert today and learn how changes in these markets may affect the value of your property now, and into the future.

Travel & Leisure: What does entertainment look like in a post-recession environment?

If you own or manage a property in the entertainment sector, you’ve likely felt the impacts of the current situation: mandated capacity limits, forced closures, lingering social distancing rules, and a decrease in national recreational travel. Some owners are going so far as to physically alter their property, adding square footage or updating air filtration or other hygienic systems. Some of these sectors might also be facing extinction. So how do these factors impact your tax liability?

That’s where we come in. Property tax assessments for 2020 were based on 2019 data, but 2021 assessments will be based on 2020 data. Let PVS review yours against the market and file a property tax petition to reduce your 2021 tax liability.

Contact PVS today for a discussion and review concerning these properties:

  • Hotel/ Motel
  • Amusement Park
  • Pool and Water Parks
  • Bowling Alley
  • Ice Skating Rink
  • Indoor Arcade
  • Gymnastics Arena
  • Trampoline Park
  • Rock Climbing Gym
  • Indoor Sports & Field

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