Monday, August 03, 2009

2010 Commercial Property Tax Relief!

Since the early nineties commercial tax rolls have experienced continuous growth. We are at a point where in 2010 commercial property owners will have the most leverage to cut their property tax valuations.

In 2009 some commercial property owners just knew their assets were not worth what they were in 2008. So they felt as though they could take advantage of the declining market to receive some tax relief. They were not as successful as they believed they would be.

Why? Central Appraisal District (the entity that handles property tax appraisals in your county) created an excuse that as of the assessment date January 1, 2009, things were not as bad as they are today. In-other-words, the sales data collected by them between January 1, 2008 and the current assessment date, will not justify whole-sale value reductions.

How do I know this?

The scenario has occurred before during the S&L Crisis which occurred in the late eighties and early nineties. During that period appraisal districts experienced shrinking tax rolls and values declined to unprecedented levels. To make up for budget short falls municipalities raised their tax rates and other service fees.

During these challenging times Texas appraisal districts will be under pressure to hold values to 2008 levels and in some cases raise values. The taxing entities need and want growing tax rolls to pay for the goods and services provided by municipalities.

Next year will be different!

2009 sales data will certainly reflect significantly lower values, limited access to capital and long days on market will stick out like a sore thumb. But property owners will need a few more strategies to maximize their chances in lowering their 2010 tax valuations. This where experienced property tax consultants can help by executing their many valuation reduction strategies.

2010 is sooner than you think, so start looking for a quality property tax consultant early.

Don’t be the 54% of commercial property owners/ tenants who don’t actively protest our high and unfair property taxes. Be one of the owners who protest their taxes and save thousands of dollars next year in tax expense.