The state of Texas has notoriously high property taxes. In fact, several cities in Texas top the annual lists of highest property taxes in the U.S., so it’s no surprise that business owners are always looking for ways to lower their property tax rates. In this blog, we take a look at some of the ways that Texas commercial property owners can ensure their businesses are appropriately valued and their annual property taxes are kept to a minimum.
Keep Up with Actual Versus Assessed Value
The actual or “market” value of your commercial property is the price that it could be listed at for sale. In some cases, the assessed value by your taxing district is pretty close to the market value, but when these numbers don’t match up, you may end up paying too much. Commercial real estate owners should stay apprised of the market value of their properties from year to year and ensure that appraised property values align with the sale value of their real estate.
Understand How Equity Appraisal Works
Equity appraisal can be quite complex. Simply put, equity appraisal means that you have the right to have your property valued in the same way that similar properties are appraised. Most of the time this isn’t an issue; however, in some areas, an equity appraisal can mean big savings on your property tax bill. When property values have increased quickly, those who invested in properties before values shot up may still be taxed for an appraised value that is much lower than the actual market value of the real estate. This happens because there is a cap to how much assessed value of commercial real estate can increase from year to year. These property owners in your district may be paying taxes on significantly less than the value of their property. When this is the case, you have the right to appeal for an equity appraisal.
Appeal Assessed Values Annually
Many commercial real estate owners make property tax appeals for one of these two reasons annually. It may seem like a headache or waste of time, but staying up to date on the value of your property, knowing your equity appraisal rights, and appealing to get the best property rates can save you a significant amount of money each year. It can be time-consuming, but it’s worth it.
How Home Tax Solutions Can Help
Want to creatively spread the costs of your commercial property tax bill into smaller installments payable over several years or avoid hefty late penalties on your commercial property taxes? It’s time to get in touch with the Home Tax Solutions team. We help Texas home and commercial property owners get the funds they need to keep their property taxes up to date. We make it easy to get started. Simply fill out our online form, and one of our five local office teams will be in touch.