How can you win hotel property tax appeal?
Posted: Sep 15, 2020
The property tax burden is a big problem to deal with many hotel owners during this COVID-19 situation. Are you thinking about how to appeal and win your case to save money? Then you must follow some of the best-practiced appeal protocols that can make you win the case. Here is the first tip for you! Check whether your hotel property is assessed fairly. Check out with an online fairness calculator to verify the fairness of your assessed property.
Can a case reduce your tax?
Can a case actually reduce your tax burden? Yes, it can reduce your tax burden. Let’s recall the first tip that I gave you. It's checking the fairness of the assessed property. Maybe you are thinking the assessed value is right because it was assessed by property assessors. Sometimes you are not right because assessors get to assess many properties on the same day so there are chances for your assessment value to go wrong. Re-verifying doesn’t harm you when it comes to reducing your money.
A case can help you to solve such kind of assessment mistakes and support you with meaningful reduction. External factors also play a vital role in assessment. Some of the factors are
Increased capital costs
Decreased room rents
These factors can affect your assessment value and a case can help you to look in a detailed analysis of all these factors which can counter benefit your appeal.
To the point arguments
Assessors would love to hear the exact details from you rather than beating around the bush to reduce your taxes. For example, let's take a scenario where your hotel property needs renovation to maintain the brand name and increase the sophistication levels of the guest. This renovation will cost million dollars, and this will help in tax reduction when million dollars of your property is compared with market value.
The net profit ratio which is given from your side should always be the combination of your hotel property’s historical performance and current results of the best comparable other hotel properties. Don’t forget to validate the assessors’ conclusions with market-driven data.
Choosing the right
From your side, all you can do it present your case with the right evidence. Bring out the aspects of hotels with tangible personal properties. If you are finding it really hard to bring out the hidden evidence or nuances of your case, then that’s when you need an expert to support you!
Choosing the right expert can be a little hard for you because most of the hotel property tax consultants address the same kind of issues. But pick the one who has the exact valuation methodology that should be very transparent for you to discuss too! If you have the right tax reduction expert to support your case, there are 75% chances that you can reduce half of your money that’s being spent on hotel property taxes. Even small business taxes can opt for cases and reduce their tax burden without secondary thoughts! Good luck with your case!