What Determines Your Commercial Property Tax Value?

If you’re the proud owner of a tract of commercial real estate in Georgia, you no doubt spend at least part of your year wondering how your profits and possessions will impact your tax bills. After all, paying your taxes is part and parcel of being a reliable business owner. Of course, you don’t want to turn around on tax day only to get hit with a sizable bill you weren’t expecting. That’s why it’s critical to take some pre-tax time to approximate what your bills may look like come tax season.

So, what is your property tax value, and how is it determined? If you want some tips on how to estimate your property tax value in Georgia, we’ve got you covered.

The ad valorem tax

Property taxes are considered an ad valorem tax—that is, they’re assessed based on the personal wealth of the owner. The next natural question is, how is your personal wealth determined? That falls into one of two categories: real property and personal property. For commercial property tax value in Georgia, the critical figure here is the value of your real property.

Georgia’s Department of Revenue defines real property as “land and generally anything that is erected, growing or affixed to the land.” The value of your real property is determined by the supposed sale value of your property.

Development matters

You may have read the above paragraph and found yourself scratching your head—don’t worry, you’re not alone. Simply put, the value of your commercial property is based on the size and location of your land. If you have any structures on the land, their perceived value will also be added to your commercial property taxes.

In other words, the more developed your commercial real estate, the higher the tax bill will likely climb.

The county claim

The location of your property plays a huge part in your tax value. Unlike personal property (which is taxed based on the county where you live), real property is taxed judging by the county in which it is located. When your taxes arrive at the end of the year, you will be taxed based on the property’s fair market value (i.e., “the amount a knowledgeable buyer would pay for the property and a willing seller would accept for the property”).

Give the pros a chance

If you need help determining your commercial property tax value in Georgia, the team to trust is Property Tax Eagle of Georgia, LLC. Since we opened our doors in 2008, our highly-skilled financial experts have worked tirelessly to help our valued clients lower their property taxes. We offer a comprehensive array of mediation and advisory services for clients with businesses of every size and industry. We’re also happy to work with tax assessors and attorneys to ensure that you get the best solution for your needs.

At Property Tax Eagle of Georgia, LLC, we’re committed to customizing our approach to ensure you’re getting the most out of your money. You don’t have to suffer from a huge property tax bill. Give us a call today. We can’t wait to help you!

Read More