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?
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
Richard B. Lee
Property Valuation Services has been working for our organization since 2013 performing property tax compliance and appeal functions. PVS has always performed their work in a trustworthy and professional manner with well trained staff that communicate effectively. All property tax matters are handled promptly with accuracy and in the best interest of Tenet Healthcare.
Property Valuation Services has been working for our organization since 2011 performing all property tax compliance, appeal and audit functions. PVS has always performed their work in a trustworthy and professional manner with well trained staff that communicate effectively, which allows me to focus on other areas of need within the Tax Department. All property tax matters are handled promptly with accuracy and in the best interest of Acadia Healthcare.
Acadia Healthcare Company
“Former senior corporate tax officer of a growth company operating hospitals and healthcare facilities in varying geographical regions. While actively leading the company’s tax function, PVS was our primary property tax consulting firm. It was critical to our success to partner with the local communities we operated within and that included Property Tax Assessors. PVS did outstanding work in a deliberate and ethical manner assisting our hospital management teams in paying a “fair” property tax.”
We have been a client with PVS since 2017. I would say that since that time PVS has become a vital part of our team. We think of their team as an extension of our own workforce, and they act like it. They are always quick to reply, happy to work with us for changes we need, and provide us with timely, accurate information at what I would call a very reasonable price. Since working with PVS, we have significantly reduced our time spent and number or errors in collecting, accruing, and paying our property tax bills and managing those bills that go to our clients. In addition, we have had a very significant reduction in late fees assessed against us and saved thousands on property tax appeals that we might otherwise not have even known how to navigate. If you are looking for real estate tax services I would greatly recommend PVS to take care of you.
Community Healthcare Trust Incorporated
Tutera Senior Living and Health Care is an owner, developer and manager of 70 senior living communities in 8 midwestern and southern states, which has utilized the services of PVS since 2003. PVS knowledge of the senior living care industry continues to provide us a level of confidence that our communities are fairly assessed. Their research and consulting services have provided our group useful information for consideration on numerous transactions. Our group considers PVS as a valued resource in the management of our communities.
Tutera Real Estate
Vibra has been a client of PVS for many years. We have been very satisfied with their attentiveness, responsiveness and results.
National Real Estate Investment Firm
Dealing with real estate tax assessments for commercial properties around the country was a challenge for a small company like ours before we started working with PVS. Their excellent service, professionalism and consistent communication has allowed us to focus on other aspects of real estate ownership and management and let the experts handle our tax appeal needs.
“Community Health Systems Professional Services Corporation has utilized Property Valuation Services in their property tax matters since 2002. Over the years they have developed a very personalized relationship with our company. Their work on various high profile cases has shown a high level of integrity while striving to maintain our company’s best interests. Attention to detail, communication, timely and courteous response to requests and reliability are just a few words that describe PVS.”
“Ardent Health Services has utilized Property Valuation Services (PVS) for 15 years because the work and Services are best in class. I’m not aware of any other property tax firm that has the level of industry knowledge. The tax-savings generated annually by PVS would be enough on its own for our continued relationship, but PVS has become our go-to firm for property tax research, consulting, and due diligence as well.”