As business owners know, commercial property taxes are unavoidable. They are a percentage of the tax authority’s market value assessment of your commercial property. These taxes, along with residential property taxes, fund local government operations like police, fire departments, school districts, etc. This is why your tax authority’s market value assessment sometimes does not resemble reality. They have a built-in need to maximize your market value, while you have the opposite incentive. Additionally, Arizona law allows you to appeal your commercial property tax assessments.
How to appeal
When you receive your official commercial property tax assessment, included in that envelope are instructions on how to appeal. Follow these instructions and all subsequent instructions you receive. Once you file your Phoenix, Arizona, appeal, when a hearing is scheduled, you will receive additional instructions.
Determine your market value
If you disagree with the tax authority’s market value determination, what you should do is determine your own market value. This can be done by comparing similar properties, gathering documentation of how your property’s quality is different, contracting a professional appraiser, etc. If you use a professional appraisal, you will likely need to bring that appraiser with you to your tax appeal, should the tax authority not agree with your re-assessment.
Photographs are some of your best evidence. However, if you are claiming the property has a diminished value, include estimates on the cost to repair those items, regardless of whether you have completed the repairs. Even if you have repair quotes that are old, you can try to use those as well, as long as they are not more than a few years old.
You have two options when you appeal your commercial property taxes. First, you can do it yourself. This requires figuring out the process, the rules and building your case. Alternatively, you can hire a Phoenix, Arizona, attorney to fight it for you.