Should Every Pandemic Driven Devalued Retail Real Estate Owner Seek A Property Tax Reduction?
If the income history supports a lower value, the answer is yes. If the property’s performance is strong even with the pandemic-related issues impacting it, the advice would be not to file a tax appeal because you are going to have to disclose your financial information. Suppose your financials are solid despite the pandemic issues. In that case, it will cause the assessor to relook at the assessment of the property and consider a counter appeal or cross-appeal for increasing the assessment in the coming year.
What Evidence Is Valuable To Prove A Drop-In Value Due To An Overall Decline In The Market?
All transaction-based evidence is valued. Also valuable is evidence based on the performance of the individual property. For example, what the landlord is offering potential tenants to occupy the space, and likewise, what a tenant is willing to pay to occupy the space.
As A Commercial Property Owner, My Tenants Stopped Paying Rent In 2020 And 2021. Will This Help In My Tax Assessment Appeal Case?
It may help. If you are not getting any rental income, then that’s a negative impact on the property. It may benefit you only for one year until things get normalized again. It depends on whether or not the assessor is receptive to your claim that not receiving rent from tenants has affected the market value of the property.
What Needs To Be Proven To Be Successful In An Appeal For A Commercial Or Industrial Property In New Jersey, New York, Or Pennsylvania?
It’s the performance of the property as well as what it is doing in the marketplace. The question is whether there is any data available that you can rely on to demonstrate to an assessor that your property is over-assessed?
Are There Any Dangers In Attempting A Tax Assessment Appeal For Commercial Or Industrial Property Even If It’s Not Successful? Could That Harm Any Future Assessments Or Property Values?
Yes, if a property is undervalued or under-assessed, it could harm the assessment in the future. You will need to disclose information to the assessor in pursuit of the tax appeal. The assessor’s position might be that they have under-assessed the property upon reviewing the information, which they would make up for in the future. So, there is a risk.
How Do You Prove Adverse Economic Trends Suppressed The Economic Value Of My Commercial Or Industrial Property?
It is essentially an accumulation of data gathered by the attorney when presenting their case to an assessor, the appeals board, or a court. Sometimes that is just statistical data, especially at an informal level, and then more often, at an appellate or court level, it is proven through an appraisal that establishes value for the period which the taxpayer is appealing.
If I’ve Already Filed Tax Assessment Appeals In Pennsylvania, New Jersey, Or New York In Previous Years, Will That Impact My Chances Of Success In A Tax Assessment Appeal This Year?
If the appeal is still pending for prior years, it could potentially be used as leverage to obtain a reduction for 2021, 2022, or future years if the pandemic issues still apply.
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