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PROPERTY TAX ADMINISTRATION

Perhaps the largest single facility expense is that of property taxes. How would you like to pay less in property tax? One of the most significant opportunities available for managers of commercial facilities to increase company profits is to appeal overstated real and personal property tax valuations. Revenue Source Group will perform a detailed analysis of your property to determine if an appeal is justified. We will handle the entire process from site inspections and case preparation to appeal filing and client representation at both informal and formal hearings. We will only file an appeal if one is warranted.

All Types of Commercial Properties
Over the past 17 years, hundreds of clients have added millions of dollars to their bottom line through our professional tax administration service. While we usually consider properties with a value of $1 million and above, we have been very successful working with lesser valued properties. We work with all types of income producing commercial properties such as:

  • apartment complexes
  • hotels
  • office buildings and warehouses
  • manufacturing plants
  • car dealerships
  • golf courses
  • banks
  • restaurants
    …and many more. 

Income, Market, or Cost Approach
Utilizing our knowledge and experience, we will build our case and value estimates by incorporating one or more of the following accepted approaches to value: Income, Market or Cost approaches.

  • The Income Approach basically consists of direct capitalization or discounted cash flow analysis to estimate the property’s value based on its income producing potential.
  • The Market Approach researches and identifies market transactions, adjusts those transactions according to specific criteria of your property to yield a value estimate based on comparable sales.
  • The Cost Approach to value uses cost manuals or estimator programs to determine the replacement cost new of your facility. Then all types of depreciation and obsolescence are factored in to arrive at a value conclusion.

The taxing authorities usually do a superb job at valuing the thousands of properties in their jurisdictions. However, due to time constraints and lack of manpower, many of the mass reappraisals utilize only one of the three approaches mentioned above; the cost approach. While the cost approach is appropriate as the exclusive approach for special or unique properties, the vast majority of properties can realize a more accurate appraisal by incorporating all three approaches.

Evaluating the Property
We will also compare the physical characteristics of the property with that described on the taxing authority’s records for accuracy. In the event there is a mistake, value changes can be made.

Once our value conclusion is established, we will determine if an appeal is justified. If so, we will begin our discussions, presentations and negotiations with the appropriate taxing officials at both informal and formal levels. We will also provide the timely filing of forms taking into account all deadlines. We will report to our clients the status of their appeals throughout the process.

As an analogy of the airline industry, we all know that two people can be sitting side by side on the same flight but one paid a much lower price for the seat than his neighbor. At a minimum, we provide you with the peace of mind that you are paying your fair share. If not, we can take corrective action.

To learn more about how we can increase your bottom line, contact Mark Parten today for a free consultation.