The commercial property tax rates are essential to factoring how you will move, expand or start a new business in Texas. Your commercial property tax will differ depending on your location in the state and the local taxing entity that applies to your business. Once your business is in place, you may find yourself surprised when your commercial property taxes are finally assessed.
Readying your tax appeal
Whatever your tax jurisdiction is, there are many ways to support the claim that you were overtaxed in a given year. The following are information that could help you make your case against a property tax assessment:
- Tabulate the amount of money the property generates: The amount of money that a commercial property generates for you is going to be a considerable factor in determining how you are taxed. The Texas franchise tax is typically calculated by using a company’s profit margins, examining its revenue minus a variety of different options depending on how the property generates business.
- Find similar properties that were taxed at lower rates: Locate commercial properties that have similar businesses, scales and land use as yours. This strategy can include similar-sized buildings, structures, and proximity to major infrastructure. If you can find the property sales of similar commercial properties, this may aid in your estimate of a reasonable market value for your property.
- Indicate the current state of the businesses on the property: It would help if you documented the state of the present business, facilities and property so that you can present an overall image of the kind of costs that go into supporting those facilities and operations.
Making the best case for your business
Commercial property owners have to take into account a wide variety of considerations when working to make their business profitable. Commercial property taxes are one of the most substantial tax burdens for any business with significant property. It is wise to appeal that tax assessment each year with the help of an attorney experienced in property tax disputes for commercial property owners.