Believe it or not, not all assessors will come to the same conclusion in determining a value for your property. There are intangibles that get caught up in the sale of real estate that sometimes do not truly belong as part of the assessment. These potential incursions can add up to big league overpayment of real estate tax that eats up free cash flow of a business.
Oftentimes assessors use the latest sale price of a property as the fair market value assessment of the real estate. Usually, the sale price of a property includes personal property items that are not necessarily part of the real estate itself. This can include items that are used in the operation of the business. Examples of personal property items that should not be valued as part of the real estate include bank vaults, storage silos or even refrigerated cold storage areas.
Other intangibles that factor into the price paid for a property include above market lease-
hold interests, credit-worthiness of tenants, favorable financing and sale-leaseback transactions, among many others. These factors lead to a wide degree of variability of the true value of the “sticks and bricks” versus the overall price paid for a particular property.
It’s pretty simple math – your property taxes are figured with a formula: assessed value multiplied by the effective tax rate. If the assessed value is not a true reflection of the value of the real estate only, and include the value of intangibles or personal property that truly doesn’t belong, then your taxes are going to be inflated.
These inaccuracies that have skewed the figuring of your taxes can be uncovered and presented as part of a property tax appeal. With the help of the professionals at Peak 5 Advisors, your taxes will be an accurate and fair reflection of what you truly owe.
Peak 5 Advisors will work to uncover any potential inaccuracies in your taxable value and appeal any inaccuracies in the value to the county auditor, the county Board of Revision, Board of Tax Appeals or even the Ohio Supreme Court.
As always, if we do not lower your tax burden, you owe us nothing. Call or email today for a free property tax appeal review.