What Causes Property Valuations to Increase


For many business owners, it can be a major source of stress when the tax assessor comes around to do a property valuation. There are two things that can happen, either your property taxes increase or they stay the same. Most people don’t think they can save money on their property taxes, whether it’s a commercial building or residential home. At the Hegwood Group, our tax experts understand how property valuations work and we know how to save you and your company money. Here are a few things that causes business property taxes to go up.

Improvements to a Building

If your business owns recently improved commercial real estate, it’s likely to increase your property taxes. Any improvements made to the building are subject to increasing the value of the property and therefore, the taxes. For example, new landscaping that improves curb appeal for the building will increase the value of your building. Remodeled bathrooms or new office flooring increases the value as well. In essence, anything done to make your property better will be subject to increasing your property taxes.

Local Tax Levy Increases

Sometimes property tax increases don’t have anything to do with the property itself but rather changes in legislature. Tax levies are used in most communities to help fund the local schools. Each municipality is different as is the tax rate. If your community votes to increase the tax levy to increase local revenue, then you should expect to pay more money in property taxes. The value of your property didn’t necessarily increase, but the need for more funding from taxpayers most certainly did.

Area Improvements

Property values are not only based on the actual property’s worth itself but also surrounding properties. If there’s been area improvements to the community, you can expect your property’s worth to go up as well as the taxes on it. One such improvement might be a community center or even a shopping center with conveniences like nice grocery stores or department stores. While these are certainly nice to have a property tax expert will caution you about getting too excited for these new amenities.

Discrepancies in the Valuation

Sometimes the tax assessor will make a mistake on your property’s assessed valuation. It’s up to you to look for these mistakes and bring them to the attention of your local government. A mistake that we find common in our client’s property assessments is simply miscalculating the size of the lot or square footage. If they assess your property as being larger than it actually is, then your taxes will obviously increase from the previous year. As property tax consultants, we constantly look for issues like this and end up saving our clients money.

Let the Hegwood Group Help You Save Money

We get it. You’re busy running your business and trying to keep everything going smoothly. That’s why we’re here to help. Our tax experts at the Hegwood Group can walk you through everything involving property taxes and save you money at the same time. Contact us today to learn more about our services!

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