Are you paying a high property tax bill that seems too much for your small business? You're not alone if your property tax seems much higher than expected. Businesses and homeowners across the US are paying more property taxes than ever.

That's because the US government has changed how it calculates tax assessments. These changes have resulted in higher taxes for commercial and residential properties, but there are ways to fight back.

Read on to learn how to lower your property tax bill.

Review Your Property Assessment

This means looking into the county review board for your property's assessment. This assessment can be incorrect sometimes, so if the appraisal is higher than the market value of your property taxes, you may be able to reduce your bill. Your local county review board can provide guidance when it comes to filing an appeal.

Be sure to provide evidence of a low market value demonstrating why your assessment should be more inadequate. You can also take advantage of tax exemptions and reductions.

Consider Exemptions and Deductions

Be aware of any applicable local, state, and federal deductions. These deductions can save thousands of dollars if taken advantage of. The IRS also offers deductions for expenses related to business property maintenance, such as energy-efficient upgrades or renovations. Consider consulting with experts in property taxes; some may offer Cost Segregation services, which can be a powerful tool for real estate owners to reduce taxable income if they use property as part of their overall income. This abides by IRS rules but is often overlooked; it can save thousands of dollars if appropriately utilized in conjunction with the help of experts.

Other deductions that may be available include:
  • Deductions for materials and labor
  • other related expenses

Monitor Changes in Property Values

Keeping an eye on the current market value of your property allows you to make sure that you are paying taxes based on an accurate assessment instead of a potentially inflated estimation from your assessor. A good practice is to get annual appraisals to use as evidence that the value of your property isn't more significant than the actual market value.

Understanding the local real estate market and speaking with local realtors can also help you stay up-to-date on changes in property values. They can provide insight into the current value and what other comparable properties are selling for.

Explore Payment Options

Depending on the taxing authority, there may be payment plans available to accommodate your needs, such as:
  • prepayments
  • installment payments
  • split payments

Researching and comparing each option is essential to ensure that your chosen option is the best option for you. Consider negotiating with the taxing authority to see if they will work with you to lower your bill payment.

Hire a Property Tax Consultant

Property tax consultants can provide valuable insights to help identify and reduce potential liabilities. After assessing the property, the consultant can offer tax planning strategies to optimize the tax burden. This can also represent a business owner in the appeals process.

The consultant can review the appeal documents, offer guidance for hearing preparation, and ensure that all information is up-to-date and accurate. They could develop an organized appeal process approach to best represent the business owner's interests.

Save More on Your Property Tax Bill

Property taxes can sometimes be overwhelming for business owners, but there are ways to minimize costs. Analyzing the available resources and researching the best options to suit your needs is essential. Take action now to reduce your property tax bill and save money for your business.

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