How Can Commercial Property Owners Benefit from Tax Abatements?

Commercial property owners have enough responsibilities on their hands. Worrying about overpaying on property taxes every year shouldn’t have to be one of them.

Fortunately, there are property tax abatement programs that can help property owners save money every year on their real estate taxes and set themselves up for a lucrative sale when the time comes to part ways with their property.

Let’s take a closer look at property tax abatement programs and how they benefit commercial property owners in Texas.

What Are Property Tax Abatements?

Property tax abatement programs are local programs that help commercial property owners reduce and sometimes eliminate certain amounts of a property tax. 

Properties that are eligible for tax abatements:

  • Are usually in neighborhoods in the midst of revitalization
  • Have undergone massive construction or remodeling projects

Tax abatements can be attached to a property for years and severely reduce the amount of taxes paid on the property while it is owned and eligible for abatement.

Does Texas Have Property Tax Abatements?

Not every state has property tax and not every state offers property tax abatements. Texas, however, is a state where cities and counties are able to grant abatements for specific properties.

In Texas, as long as the property rests in a reinvestment zone, is taxable real property, personal property, or both, it’s eligible for abatement.

What Are the Benefits of Property Tax Abatements?

So, why should a commercial property owner apply for a property tax abatement? There are several benefits to doing so; and much like property tax protests, the end result of the process can’t leave you with a higher bill than you’ve already got.

Property Tax Bill Savings

Improvements to commercial property are often desired, but the additional property tax could leave owners lingering. 

True, an abatement will not completely eliminate the need for property tax payments. However, they can significantly reduce them for years down the road. 

Abatements help owners reduce additional property taxes that would otherwise be paid in full after a massive construction or improvement project. The property taxes owners would have to pay are the taxes owed before the property was improved.

Property Attractiveness During a Sale

Property abatements are usually reserved for areas of a county that have lower demand for buyers. Abatements come with a sold property and offer guaranteed value for a potential buyer that they can even build on over the years. 

Also, if a property lies in an area where it’s eligible for abatement, this is something a seller can advertise in order to attract qualified buyers at a price that brings in excellent ROI.

Questions About Real Estate Property Tax? The Hegwood Group Can Help!

If you are a commercial property owner that has questions about abatements and other methods of saving on property taxes, The Hegwood Group is available to help.

We are a team of property tax consultants that have the experience to help you see results in your property tax reduction efforts.

Contact us today to learn more about our services or to schedule a free consultation with a member of our firm.

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