Property Tax Estimates
At Duggan Property Services, we use our extensive industry knowledge and in-depth market research to deliver accurate and actionable property tax estimates. Whether you’re acquiring a new property, engaging in construction, or seeking reliable forecasts for annual accruals, we provide data-driven estimates that help you plan effectively. Our estimates are rooted in current market trends, regional tax nuances, and precise calculations, ensuring you’re fully informed about the potential tax obligations associated with your property.
We offer tailored solutions for a wide range of real estate scenarios, including property acquisitions and development projects. Our team works closely with you to understand your specific needs and objectives, enabling us to provide detailed estimates that help you make strategic decisions with confidence. Whether it’s for budgeting, long-term planning, or managing accruals, our property tax estimates allow you to anticipate and mitigate tax liabilities, ensuring your financial projections remain on target.
10 Things to Know About Commercial Property Tax Estimates
Assessed Value vs. Market Value
The assessed value is used for tax purposes and may differ from the property’s market value (the price it would sell for). Assessors may use different valuation methods, which can lead to potential discrepancies.
Assessment Methods Vary
Assessors use one of three primary approaches: income approach (based on rental income), sales comparison approach (based on comparable sales), or cost approach (based on replacement cost). Knowing which method is used, and why, helps in understanding the estimate.
Local Tax Rates Fluctuate
Property tax rates can change annually depending on things like government policies, public services funding, or local budgets. Changes in tax rates can significantly impact your estimated tax burden.
Periodic Reassessments
Jurisdictions reassess property values periodically (annually, biennially, or less frequently). A reassessment can result in changes to your property tax estimate, especially if property values have risen.
Impact of Property Changes
Renovations, additions, or changes in property use (e.g., converting office space to retail) can trigger a reassessment and may increase your tax liability.
Special Assessments May Apply
In addition to standard property taxes, special assessments may be levied for local improvements like road maintenance, sidewalks, or new utility lines. These extra charges are easy to overlook in initial estimates if you’re not careful.
Appeals Can Reduce Tax Liability
If you believe your property is over-assessed, you have the right to appeal. A successful appeal can lower your property tax estimate, but the process can oftentimes be complex.
Tax Exemptions and Incentives
Some commercial properties may qualify for tax incentives, such as abatements, credits, or exemptions (e.g., properties in economic development zones). Knowing eligibility criteria can result in substantial savings.
Budgeting and Cash Flow Planning
Accurate tax estimates are essential for budgeting, especially for commercial properties with variable income. Unexpected increases in property taxes can affect cash flow and profitability.
Engaging Professional Help
While appraisers and tax attorneys can sometimes provide valuable assistance in the appeal process, Duggan Property Services can often eliminate the need for costly add-ons because of their in-depth, broad and extensive experience.
