Owners of auto dealerships, like owners of any commercial property, are responsible for paying taxes on that property every year. While the majority of the considerations they need to keep in mind are the same as those of any other commercial property owner, there are a few issues unique to auto dealerships that you should keep in mind as a dealership owner.
Here’s some information from our team about the particulars of auto dealership property tax in Georgia.
Special considerations for auto dealerships
There are a few unique elements to auto dealerships that require special consideration when planning for your property taxes.
Dealerships are generally considered special-use properties built for a single purpose, which means there are some different factors to consider during property valuation. As such, there are some special opportunities for reducing your tax burden. For example, the costly nature of constructing an auto dealership may grant you access to certain deductions on your taxes, as does their high-traffic nature.
To get accurate valuations for auto dealerships, it is necessary for appraisers and industry professionals to carefully study market rates and find similar sales comparisons. Vehicle inventory can also have an effect on the tax rates auto dealerships can expect.
Beyond a few of the factors that are unique to auto dealerships, there are a variety of other factors that will affect the property tax rates for just about any kind of commercial property. Some rules are always true—for example, larger properties can expect to be taxed at a higher rate. Other factors such as age, location and construction type can also affect the amount of taxes you’ll be responsible for paying each year.
Property taxes are always calculated based on the assessed value of the property, a general commercial property tax rate and any exemptions for which your dealership may qualify. The assessed value can change from year to year, though property assessors may not actually reassess your individual property every year. The assessed value may simply be the market value of the property, or it might be calculated by multiplying an assessment rate.
If you have any reason to believe you are paying too much toward your commercial property taxes, you can file an appeal. Every jurisdiction will have its own appeals process. It’s strongly recommended that you work with an accountant or tax attorney in this process, as the appeals process can be difficult to navigate and may require a lot of knowledge of insurance law. It can also be helpful to get to know the assessor who handles commercial properties in your area and see if you can get their reasoning for your property tax assessment.
Interested in learning more about how commercial property taxes work for auto dealerships? We’d be happy to answer any questions you have about property valuation and assessment for tax purposes. For more information about auto dealership property tax in Georgia or to learn how you can appeal your current tax assessment, we encourage you to contact Property Tax Eagle of Georgia, LLC today.