5 Tips For Large Commercial Property Tax Refunds

Mortgage refinancing is one option for commercial property owners to get better rates and save money. But saving on property taxes can also be obtained by bringing down their property's assessment, Orlando Business Journal reports.

Regardless if the owner hires a tax agent or do the negotiating on their own, these five tips by Bizjournal's guest columnist Barry Sharpe could help business owners in appealing for their property assessment:

Property assessors won't visit every property

Instead of doing individual appraisals on every parcel, property assessor offices do mass appraisals where properties are grouped by similar market influences and characteristics. They consider sale comparables and rentals and vacancies on the Internet. Property owners are expected to have full knowledge about the nuances and issues of their property more than anyone and should be the right person to contest for an assessment reduction and eventual property tax relief.

Be your property's worst critic

It's time to bring the skeletons out of the closet. A property's value can be highly impacted by the conditions and elements that make it up: all repairs from roofing, painting, appliance replacement, etc. Keeping record of all those through photos and estimates will help with the assessment reduction. The property owner should also know of construction and cosmetic issues that are unknown to the property appraiser unless through volunteered information.

Establish more grounds for tax relief

Mention renovations particularly after a tenant moves out as well as rental concessions offered for new tenants, real estate broker commission and the length time that the property was left vacant. These factors should explain that your "effective" rental is different than the county "contract" rental rates used to establish a value.

Attend someone else's appeal hearing

The best way to understand how the process works is by attending a similar hearing. Every county's value adjustment board does public hearings. It is a forum composed of property owners who would like to appeal their property values.  A special magistrate handles the cases instead of a judge.

You won't get what you don't ask for

Not a lot of property owners are sure about appealing their property assessments, when in fact, they could obtain a tax refund increase when done with proper presentation. In Florida, they even grant an additional 12 per cent on the refund. Unless you challenge it, the county's view of your property value will remain.