December 8, 2022
It’s a word that can make people flinch and when it comes to commercial real estate taxation, the stakes are high. These posts are dedicated to helping commercial real estate professionals navigate the complex and ever-changing world of taxes as it regards commercial real estate or commercial property management.
As many in the commercial real estate business can attest, CRE taxation involves a number of factors that are highly dependent on location, property type and, of course, state, county and city regulations. In fact, tax regulations and rates can vary significantly between municipalities so it’s absolutely imperative to know how those changes will affect specific properties in specific locations.
A property’s assessment value also plays a pivotal role. Commercial properties are usually assessed based on their overall market value and/or potential for generating revenue. However, properties are also subject to a reassessment which does happen periodically and that can lead to changes in overall tax liability.
Does it sound a bit confusing? Sometimes it feels as though that’s almost the point of it all. Assessments and reassessments. Appreciation and depreciation. Operating expenses, capital gains and municipal regulations that vary from town to town. Even a seasoned commercial real estate pro can get a bit lost in the maze of CRE taxation and tax regulations.
However, life can be easier when real estate pros utilize commercial property management software that is specifically designed to address the varying taxation issues within the commercial real estate industry. Are you ready to take the guessing work out of your taxes? We can show you how.