How small business owners can deal with property tax increases

On Behalf of | Mar 17, 2022 | assessment appeals, property tax appeals | 0 comments

As a small business owner, you want to keep your bottom line as low as possible. One of the ways you may be able to do this is via property taxes.

If you own commercial property, you owe property taxes to the state. If you feel that your last property tax assessment was higher than it should be, you may want to appeal to reduce the amount of taxes you owe.

Reasons for property tax increases

According to U.S. News and World Report, property taxes can change due to numerous reasons. A common one is that there is an increase in the overall value of the neighborhood in which your commercial property resides. There may also be a change in law at the federal, state or local government levels.

According to the Illinois Department of Revenue, changes in the tax rate of the taxing district can also result in property tax increases, as can improvements to the property, a correction to a previous underassessment or the imposition of an equalization factor.

How to file an appeal

If your property taxes increase, and you feel this was in error, you may want to file an appeal. Before you begin, you should understand some of the common reasons for an appeal. These include:

  • Proof that similar properties in your area had lower assessments
  • Proof that the market value is less than the assessment states
  • Legal argument against the application of the law

When filing a disagreement, one option is to file an appeal with the Property Tax Appeal Board. The other option is to pay the taxes under protest and file a tax objection to the circuit court. If you do file an appeal, there is a time limit by which you must submit the appeal.