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Date: May 2020
Southeast Real Estate Business

Reprinted with permission from Southeast Real Estate Business.

No one wants to be blindsided with additional tax liability. This is why many businesses belong to industry groups that closely monitor liability for income taxes. Unfortunate­ly, these same companies rarely stay on top of legislation that may have a significant impact on their property tax li­ability. Tax legislation being passed and considered across the nation due to the COVID-19 pandemic does not appear to address the significant tax liability associated with property taxes for busi­ness. 

Property owners may take for grant­ed that key precepts assessors use in de­termining taxable value are so widely held and accepted as to be immutable. Almost every state’s tax law holds that a property owner pays property taxes on the asset’s “real market value.” Real market value is the price a willing buy­er and willing seller would agree upon in an open-market transaction.

Unfortunately, even with the CO­VID-19 pandemic, there will likely be little property tax relief this year for property owners unless special legis­lation is passed. This is due to the fact that the majority of states set the as­sessment date to Jan. 1 of each tax year. The COVID-19 outbreak was declared a “Public Health Emergency of Inter­national Concern” by the World Health Organization (WHO) on Jan. 30, 2020. However, it was not until March 11 that WHO declared the novel coronavirus outbreak a global pandemic and its impact reverberated across the United States.

Download the full article as published in Southeast Real Estate Business.

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