Guide to Reducing Your Business Property Taxes

Assess your assessment

Determine whether the assessed value of your business property fits the current market conditions.

I recommend: AVTI, a nationwide property tax consulting firm, offers valuation analysis and assessment tracking among its many services. The American Society ofAppraisers has a searchable database that will allow you to locate an appraiser in your area.

Compare your assessment to neighbors

Find out what other businesses in your area are paying to see if your taxes are in line with theirs. You may have grounds for an appeal if you're paying more than your business neighbors.

I recommend: For a small fee, Intelius gives you the ability to look up the property tax information for any address in the U.S.

File appeals

Call your local tax office to ascertain exactly how to file an appeal. Some cities have 311 numbers that can direct you to the right office.

I recommend: The National Tax Resource Group offers professional appeal services for all types of commercial real estate nationwide. These services are handled through qualified consultants in your local area.

File appeals for business personal property

Sometimes, you can reduce business property taxes through a business personal property tax appeal. This involves the valuation of equipment, furniture, computers and inventory.

I recommend: BurrWolf.com offers a number of property tax reduction services, including business personal property appeals.

Analyze additional factors

Several things can affect your property taxes, such as income and expense statements, market capitalization rates, replacement costs, costs of environmental cleanup and more.

I recommend: CBiz.com, a national property tax solutions firm, analyzes a wide variety of elements that may result in a reduction in taxes.

Consider a cost-segregation analysis

Cost segregation studies identify various components of your building that may be eligible for accelerated tax depreciation. By reclassifying certain assets in this way, you may see significant savings in your property tax obligations.

I recommend: The Griffin Valuation Group are experts in cost-segregation analysis and property tax consulting and aim to lower business property tax burdens.

Use software

Using a property tax software program can help you root out possible reductions and facilitate the appeal process.

I recommend: With ePropertyTax Office, you can track appeals, process assessments and analyze valuations.

Ensure proper zoning

Tax rates are linked to the various zoning classifications so it's a good idea to contact your local state tax office to ascertain if your zoning classification is accurate.

I recommend: Click on your state at TaxSites.com to make sure your business is classified correctly.