With the inauguration of a new president, many people are unsure of what to expect in the coming year in terms of policy changes. The first thing that worries the majority of people is whether or not their taxes will increase or decrease. While we have no way of knowing what will change until the time comes, we can anticipate certain things and try our best to prepare for them. For companies of all sizes, property taxes are a major concern. Here are a few things to watch for as the new president takes the Oval Office.
Property Tax Rate Changes
Every time a new president is elected, businesses and individuals scramble around trying to figure out how their property taxes are going to change. For businesses, the taxes can fluctuate year to year. Similar to real estate taxes on your home, your business property taxes are based on your property’s value. In many states, the tax rate is a percentage per $1,000 valuation. The value is determined by the tax assessor and can often be appealed if you disagree with the estimated value. Property tax consultants make the appealing process easier if that’s a route you’d like to take. Watch for changes in how the value of a property is assessed in the coming months.
Adjustments to Personal Property Taxes
Until you’ve had to pay taxes as a business property owner, you can’t imagine some of the things that are actually taxable. Depreciation of these things can also change the taxes your business will pay year to year. Assets like computer equipment, office furniture, office supplies, and a plethora of other things are taxable. Hopefully, in the future this will change and it’s certainly something to keep abreast of throughout the first year of the new presidency.
Corporate Tax Reform
While not specifically related to property taxes, corporate tax reform is making it’s way through congress in an effort to reduce taxes large businesses pay each year. Currently, the reduction would be from 35% to 20% for most corporations. Smaller businesses will also likely see a reduction in tax rates in the coming year.
Expect to Need Professional Help
Anytime there’s a change in tax law, mass confusion usually follows. While we don’t know exactly what will change in the coming months, anticipating changes is the first step in being prepared for them. At the Hegwood Group, our property tax consultants recommend talking to a tax expert to make sure you file correctly and don’t miss anything that could end up saving you money.
Let Our Tax Experts Help
Just like you have your area of expertise, we have ours. Luckily for you and your business, we understand property taxes and how they work. We’re respected in our business and we’d appreciate the chance to help you save money this tax season. Contact us to learn more!