Now Automated – Property Tax Assessments for Business Property Owners

By Robert A. Hill, property tax attorney and president, Robert Hill Law, Ltd.

Your business property has just been assessed and marketplace knowledge tells you this tax assessment just doesn’t seem right. What to do next?

You need additional facts and you need them quickly. You want a simple means to efficiently find hard facts and determine whether there’s the leverage to save your business hundreds of thousands – or millions – of dollars over the next few years.

We’ve built a proprietary software that offers an unequaled property tax assessment analysis. It’s fast (often completed in minutes), collecting and presenting the facts to prepare a case against the assessor’s valuation. No other property tax firm in the United States has built anything like it.

After a short conversation, we only require a copy of your property tax statement. Results are often tabulated within minutes. To engage our team is simple. Contact us by phone at 952-426-7373, or via our Contact Form. Since we work strictly on a contingency fee basis, there is no risk to you – only the reward that comes from a substantially reduced tax assessment in line with market principles. Put a team of relentless advocates to work for you.

Property Tax Reduction Case Studies:

  • Big Box Home Hardware Retailer – $9 million in savings over three years
  • Big Box Pharmacy Retailer – $2 million in savings over four years
  • Minnesota-based Food Retailer – $3.7 million in savings over three years
  • Well-known Food Brand – $250,000 in annual savings

bobAuthor Bio:

Robert “Bob” Hill has, for over three decades, successfully represented major companies in property tax appeals through both negotiations with tax assessors and litigation. His dedication to his clients has helped businesses throughout the United States save tens of millions in property taxes. Mr. Hill has earned Martindale-Hubbell’s highest peer review rating of AV-Preeminent for his legal knowledge, communication skills, high ethical standards, and his representation of clients in significant property tax cases.

Corporate headquarters

Case Study: $8 million reduction for corporate headquarters

Corporate headquarters facilities often suffer from several forms of functional and external obsolescence. If an assessor doesn’t realize this, the property can be overtaxed, which is what happened with the corporate headquarters of this Fortune 500 medical technology company in Fridley, Minn.

Using comparable sales and comparable assessment data, Robert Hill Law, in conjunction with a Twin Cities real estate firm, proved that a potential buyer would not pay the assessed value on this property because the property was specifically tailored for the medical tech company. This resulted in the city assessor and the county reducing the assessed value of the property over time on a step-down basis.

Today, this company’s corporate headquarters is valued at $35 million, down from $43 million in 2008.

  • Assessed value: $43 million
  • Negotiated value: $35 million
  • Amount saved on property taxes: $1.32 million

Commercial Property

Age, Maintenance, Sales Price

Three things to consider about your property tax assessment.

There are three important factors to consider about your current industrial property tax assessment when determining if an appeal is the right next step.

 

Age: Has it been five or more years since the last property tax assessment?

Industrial property owners often see a static market and assume their years-old assessment is fine, but a lot can change in five years.

Property values decline over time because of age and condition, which an old assessment doesn’t reflect. Likewise, if an addition was put on, it doesn’t necessarily add value to a building because of the high rate of property depreciation. A property reassessment can determine the true value of a property in anticipation of sale or remodeling.

 

Maintenance: Have excess maintenance costs been incurred because of deficiencies or problems with the property?

Take this example: A 500,000-square-foot, 20-year-old building has a flat roof that needs to be replaced at a cost of $6 per square foot, bringing the total to $3 million.

An assessor might not know about the roof, and a buyer would challenge the asking price for the property with this or a similar maintenance issue. These and other excess maintenance costs incurred by the owner because of deficiencies or problems with an industrial property call for a reassessment.

 

Sales prices: Are you aware that sales prices have declined for major industrial buildings?

Sales prices of major industrial buildings have taken a hit since the start of the recession.

A recent example in the Twin Cities area was the sale of a 500,000-square-foot industrial space in Brooklyn Park. The company moved its production offshore and sold the building for $22 per square foot; pre-recession, the going rate of similar buildings was more than $40 per square foot. Fewer companies are able to sell their properties at the former value because of the number of properties on the market. A reassessment can lead to a more accurate reflection of property value in light of today’s economy.