In an economic downturn the owners of commercial real estate must “tighten
their belts” and look for every possible way to reduce expenses. One way to
substantially reduce expenses is to consider a real estate tax appeal.
Commercial real estate is taxed based upon the assessed value of the property.
Taxes are established by a simple formula; the assessed value of real estate
is multiplied by the tax rate, which results in the amount of taxes to be paid.
The tax rates (which are established in the middle of the year) are generally not
subject to review. However, the assessed value of real estate is subject to review by means of a tax appeal.
The assessment of real estate for the year 2012 is based on the value of real estate as of October 1, 2011. As a result, all tax appeals are simply to determine
what the real estate was worth on October 1, 2011.