Commercial vacancies are increasing, and property values are declining despite Atlanta’s strong residential real estate market. On a business property, you can request a reassessment of your property taxes.
A county assessor has the power to examine a property’s worth and, if necessary, adjust the property tax assessment if it has decreased. Proposition 8 was passed in 1978, and Proposition 13 was amended to permit temporary reductions in assessed value when real estate suffers a drop in value because of the area, the real estate market, or the property itself as a result of damage or destruction. For more information regarding reassessing property taxes, contact a CPA in Atlanta, GA.
How to reevaluate property taxes on commercial real estate with declining value
At first, the governor had to proclaim a disaster in order to lower the base year value. “The full cash value base may be decreased to reflect significant harm, destruction, or other causes causing a decline in value,” according to Proposition 8, which changed this. A new base year value is not, however, permanently established by the Proposition 8 reassessment.
Most county assessors will check a property’s assessment for a potential value decline upon request. The requirements for a drop-in value review in each county will determine how the study operates. The following steps usually take place in the review process:
- Fill out the assessor’s request form or give them a call.
- Give the appraiser evidence to back up the property owner’s assessment of the property’s market value. Usually, comparable properties that sold near January 1st but no later than March 31st fall into this category.
- By the county’s usual appeals deadline, submit the suitable paperwork and/or information.
- After examining the information provided, an appraiser from the assessor’s office will determine the property’s market value as of January 1.
- After that, the assessor’s office will decide if the property’s current market value is less than the present factored base year value. The lower value is enrolled if the assessor agrees that the market value is less than the calculated base year value.
- The lower value is enrolled if the assessor agrees that the market value is less than the calculated base year value.
- The property owner is informed of the assessed value after the evaluation is concluded.
After the evaluation is finished, a property owner can submit an assessment appeal application to the county’s assessment appeals board clerk if they disagree with the assessed value.
The assessor examines the assessment once a property’s assessment has been reduced in Proposition 8 to see if it should continue to be in Decline in Value status.
Even if the rise exceeds the two percent annual increase cap set by Proposition 13, the assessed value may be restored to the current factored base year amount if the market value recovers. It is only possible to review the most current assessment from January 1st.
Is Proposition 8 applicable to supplemental assessments?
Proposition 8 is not applicable to supplemental assessments and does not permit relief for previous years.
Irrespective of any pending reduction request, property owners must still pay their property taxes on time in accordance with the tax bill they received, or else fines and interest will be imposed.
The assessor will provide a notice of correction and an updated tax bill or refund according to the difference in value if they determine that a decrease in assessed value is justified.
Consider submitting a formal assessment appeals application to ensure that the property’s assessment is reviewed if the owner fails to get notification of the assessor’s review results by the time their county’s deadline for filing an assessment appeal approaches.
Conclusion
A certified public accountant specializes in offering businesses and nonprofit organizations professional bookkeeping, tax, and accounting services. Your CPA can assist you whether you are an owner of a small business trying to figure out your finances, a nonprofit organization in need of expert guidance, or a developing company looking to optimize your accounting procedures.