Property tax: a hidden – but significant cost – to any business owner. According to information provided recently by one industry expert, commercial property taxes constitute about 40 percent of occupancy costs. This is compared to income tax, which is generally 4.5 percent of the cost of occupancy, and sales and use tax, which comprise about 27 percent of the cost.
With that kind of impact to the bottom line, it is important to make sure that you are not overtaxed for the value of your property.
Local and state governments rely heavily on commercial property taxes, so it is in their best interest that these properties are assessed at high values. However, it is in the business owner’s best interest that the properties are assessed accurately. Real estate experts suggest that 90 percent of a company’s locations are over-assessed.
The local governments will set their millage rates based on the overall tax digest in the community. It is imperative that the fundamental variable – the property assessment – is calculated accurately.
We have identified a resource that may be able to help you reduce your overall property tax. Please contact us if you would like to learn more.