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As good as your intentions, you are most likely not a tax expert, especially about property taxes. What you are better off doing is spending your time making your companies run well. Hire a tax expert. Instead of attempting to learn the tax code and all of the nuances of preparing renditions and fighting tax valuations, hire a firm that will share in your savings.
Pick a sharp team of specialists and let them fight the authorities to determine market value. Reevaluate the approach to argue for lower taxes. You cannot be an expert in tax law and do everything else to run a business adequately. These experts fight tax issues every day. You do not. Rely on those that do; select and hire some experts.
Reasons to hire an expert to cut your property taxes:
- Know how to protest appraisals. Fight real estate values/ let them look up comps that work for you. Property taxes on real estate can vary substantially depending upon the market value of the property. Let the protest firm argue for the lowest value possible. They do this all of the time; they are better than you and know the officials who make the decisions downtown. They have access to property sales in your area. They can access the most beneficial examples to argue down the value of your property. They are motivated because they get a cut of what they save you. They are on your side, they do it every day and you do it only once per year.
- Know the government officials. They know the government guys you are fighting who work on the other side. They also know the officials downtown because they see them all of the time and know their particular weaknesses. They witness rulings and idiosyncrasies that you will never have the time to experience. They know what will pass the ‘smell’ test and what does not. From their experience, they know where they can push the boundaries. Your problem as a business owner or manager is that you only do this once per year; you need to buy experience.
- Know the exemptions – what works and what does not. Look for exemptions everywhere. Find out from your specialists what possible exemptions can be found within inventory and extrapolated export sales. They will be able to define these terms for you and the particulars within your state and your county at yearend.
- Experts in multiple locations. Multiple locations and taxing authorities to fight with, you want a firm that can take care of multiple locations and tax authorities. Make sure the firm you pick has plenty of experience and depth in the staff assigned to your company.
- They review tax bills every day; you do it once per year. Let them review all bills and notices. When you get all your tax bills, have them review and approve them. They should be fully aware of their content. Remember to help them by forwarding all correspondence to them concerning your taxes. Make them analyze all charges every year. They make more money the less you pay.
- Use them for accounting estimates. Call them for estimates for property tax when you buy new capital equipment so you can adjust your accounting tax accruals. They can also give you specific tips about purchasing capital and possibly the difference in locations where the equipment is used. Ask an expert and stick to running the business you already know.
- Ask for yearend advice before yearend. Ask them what you can do to cut your property tax bill. Is there inventory you should scrap? Are there broken machines that need to be scrapped or sold off? Are there properties that have sold cheaply around your site? Have market prices declined in your area? What are your property tax guy’s recommendations to do before the physical end of the year arrives?
