Tips to stop overpaying hotel property taxes in 2020

Are you a hotel property owner? Then you would have faced this issue at least once in your lifetime. Hotel tax bills are one of the highest incomes for the government, but you don't need to pay more tax than your hotel costs. Since hotel tax bills are long and never-ending, they are prone to errors. When a hotel property owner pays high taxes it eventually affects his business and future investment plans. So, to avoid all such complicated scenarios here are few tips which you can follow to reduce paying high taxes.

Why do taxes pay a big role?

Taxes are the bottom-funnel that keep the business running without errors. They can change your net operating income upside down. They are responsible for the money that gets into your savings pocket at the end of the day. Saved taxes reflect better in enhancements of the hotel property. It even has the power to determine the future sales price.

How to appeal better?

Everybody knows how tax is being calculated. Long story short, 1 mill = $1 of tax for every $1,000 assessed value. It is a known fact that most of the hotel properties are over-valued by 25%. Most of the hotel owners pay more than how much they owe! To overcome this issue, the appealing process helps a lot. But it is a long follow-up process which can happen even up to 90 days and that’s why hotel owners who are quite busy do not get into it. If you are one busy owner, then you must check with Real Estate Tax consultants especially hotel property tax consultants who are helping there for multiple properties.

Just a call away

You can directly ask out any queries in your tax bill by ringing up directly to the tax assessor’s office. When you are contacting the assessor office be sure you have all the relevant information. Some of the significant things you need handy are

• Tax ID number
• Hotel location

Don’t forget to ask for the methodology which was used to assess your hotel property tax rate.

Exemptions come into the rescue!

Check whether you are applicable for any exemption. Some of the exemptions include

• Energy efficiency
• Non-profit organization
• Charitable organization

The hotel must have all the records to verify that they are applicable for claiming their exemption. Sometimes, the assessor’s office will send you a letter regarding verifying your exemptions. If you are not a permanent resident of the state, then you should fill Form 12-302 to ensure exemptions.

Be polite

It is very common for humans to make errors. Not only your property gets assessed at the assessor’s office. So, pull yourself together and keep yourself calm. Be polite when you make a call or reach them in email. Make sure you find some better appeal letter formats. I have shared a sample appeal letter here which you can edit a little and make use of. Clearly explain the value of the property and send your appeal on time. Keep your evidence handy and ready so that you can protest for your business taxes for 2020.

Hi everybody, It’s Derick from Houston and am working as a freelance property tax consultant. I love reading and writing. Write to me @ derickjames784@gmail.com