State and local tax authorities assess real estate taxes based upon “value” as defined by statute or caselaw. At Fandl we have found that changes in the real estate market and specific court rulings often result in property being assessed at more than its taxable “value”.
While an appropriate estimate of market value developed by analyzing the three approaches to value (cost, income and sales) can result in tax savings, there are several other areas of opportunity that can also generate substantial tax savings. Such areas include the identification of non-taxable real estate assets, exempt property (e.g., pollution control, agricultural, etc.) and asset classification (e.g., real v. personal & among tax classes). Assessment reductions, through either informal negotiations with property tax authorities or formal tax appeals, will generally result in savings for multiple tax years.