6 BWD | FALL/WINTER 2017-2018
By Paul Bach and Sam Hodges, CPA, CGMA
PROPERTY TAX
A Fixed Expense?
Many businesses categorize property taxes as an
operational fixed expense. And although property taxes
have the propensity to be time related, there is more to
them than just a yearly due date. Did you know that you
have the authority to challenge excessive property values
and reduce the amount of your fixed expense? Here are
a few tips to help you ensure you are paying the correct
amount of property tax liability.
Understand ownership transfer laws
If you are looking to acquire assets, particularly real estate, it is
important to understand the laws applicable to ownership transfer
and its impact on assessments. Some taxpayers experience unexpected
increases in property tax liability — uncapping laws can result in a
significant impact on taxes. Having an understanding of the law and
the market allows you to make more confident buying decisions and
prepare for future property tax expenses.