INVOKE PROPERTY TAX SAVINGS DURING REASSESSMENT CYCLES
Nationwide, County Assessor’s Offices reassess their commercial real estate to meet current fair market value, most commonly seen on annual, two-year, or four-year cycles. Invoke’s tried-and-true methodologies and strategic approach have proven to be vital during these optimal times to achieve the highest reduction in property value. Without proper guidance, real estate owners and investors are at the largest risk of not only heavily increased property values, but also in respective property taxes when reassessment values are released.
Many of our national portfolio real estate investment trusts and other multi-state commercial real estate owners and investors are dealing with several counties in different states reassessing simultaneously. Owners are managing reassessment appeal cycles that span upwards of two years due to backlogged litigation schedules, making our nationwide reassessment consultants an integral part of their bottom-line. Our national network of commercial real estate property tax consultants provides seamless valuation reductions throughout your entire portfolio for parcels under reassessment, and achieve maximum property tax refunds for those out-of-cycle, ensuring holistic bottom-line savings year-over-year.
If there are parcels in your portfolio undergoing reassessment now or in the near future, contact our team today. A localized reassessment consultant will be in touch shortly.
2023 Reassessments Nationwide
Invoke Tax Partners proudly represents some of the nation’s largest commercial real estate owners in successfully providing maximum property value reductions during times of reassessment across the country. Our team of consultants span all 50 states, providing local expertise and veteran experience to every major metro area, allowing our clients to rest assured that their portfolio is handled by the industry’s best. Below is a list of key state and county reassessments this year that is being consistently updated as new information comes in nationwide. To learn more about the intricacies of each individual reassessment, follow the respective link below, or contact us today to connect with your localized reassessment team.
Allegheny County, Pennsylvania
The real estate appeal deadline for Allegheny County, PA is set for March 31, 2023. This year’s deadline is very important for commercial real estate owners and investors due to the equalization ratio being reduced from 81.1% to 63.6%. This translates to a nearly 28% increase in the market value of all properties in the county at the stroke of midnight on January 1, 2023. Further, a recent court ruling which reopens the 2022 tax year to appeal opportunities is also in effect with the same March 31, 2023 appeal deadline. In this instance, an Allegheny County Court of Common Pleas judge ordered the 2022 equalization ratio to be reduced from 81.1% to 63.6% (this ratio is still pending). This ruling sets up the same increase in value scenario described above for the 2022 tax year, leaving commercial real estate owners and investors with additional threat to their bottom lines. LEARN MORE.
Mecklenburg County, North Carolina
Mecklenburg, North Carolina has upwards of 400,000 parcels and reappraising all commercial real estate is a mass undertaking for the assessor’s office and property owners alike. To begin, the county updates all their cost data and market data as of January 1 of their reappraisal year. Because costs, market information, as well as sales have increased significantly within the last four years, we anticipate significant value increases, marking this cycle’s reassessment as more significant than those in the past. The county assessor has predicted that the overall increase in commercial real estate values is approximately 39% in Mecklenburg, with some asset classes increasing higher than the average, primarily multi-family and industrial. LEARN MORE.
Texas
Property values in Texas are reappraised every year. With some of the highest property tax rates in the nation, owners and investors of Texas commercial real estate and business personal property need to be aware of dates and methods they can utilize to ensure they are only paying their fair share in property taxes, as this cycle can be one of the toughest to navigate. LEARN MORE.
Ohio
Ohio commercial real estate owners and investors will be receiving their newly reassessed notices of value at the beginning of January. The initial mailings were sent out as of January 1st, but updated notices of value are currently available online for all properties. The time to file an appeal in Ohio is between January 1, 2023, and March 31, 2023. The New Ohio property tax law will dramatically limit the ability of legislative authorities, such as the Board of Education and other third parties, from filing complaints against the valuation of property they do not own or lease. LEARN MORE.
Connecticut
Once the informal appeal process concludes, there is an opportunity to file a formal appeal of assessment to the Board of Assessment Appeals (BOAA) by February 20, 2023, in the municipality where the property is located. Some municipalities may also extend the BOAA filing deadline to March 20, 2023. Because of the significance of this year’s reassessment, we expect to see an increase in commercial property reassessment appeals being heard at the Superior Court, making partnership with an experienced property tax firm an integral part of successfully navigating the appeals system. LEARN MORE.
Maryland
We are expecting our clients to see double-digit percentage increases in their newly assessed values and are relying heavily on the expertise of our dedicated Maryland property tax consultants to assist in navigating the complexities of the reassessment appeal process, particularly with post-COVID delays. With the usual complexities of the Maryland reassessment cycle already at play, it is imperative to partner with our experts to develop an appeal strategy custom to the timing, circumstances, and appeal type for your entire Maryland portfolio. LEARN MORE.
Colorado
2023 is a reassessment year in Colorado, the first since 2021. Value notices will be issued in Colorado on May 1st, 2023, with an appeal deadline of June 1st, 2023. Annual rent growth reached a record of 13% in 22Q1 but has decelerated to a current year-over-year figure of 2.7%. Downtown Denver has the 3rd highest Multifamily construction pipeline in the country. 27,000 units under construction is a record for the market. The Denver City Council passed an affordable housing policy that went into effect July 1. New housing developments of 10 or more units are now required to set aside between 8% and 15% of units as affordable. The city will also be increasing its linkage fee over the next four years to maintain the city’s affordable housing fund. Developers participating in the affordable housing system are fee exempt.
Office demand continues to suffer statewide. Vacancy rates have reached an all time high that is likely to affect office property owners and investors on their upcoming value notices.
Overall the Denver market remains in expansion mode and property owners can expect to see this kind of increase presented on their value notices.
Missouri
2023 is a reassessment year in Missouri, the first since 2021. Value notices must be mailed by June 15, 2023, and the appeal deadline is the 2nd Monday of July. With nine consecutive quarters of declining occupancy in some of Missouri’s largest markets, the vacancy level is up to 10.9%, its highest since 2013. St. Louis continues to be an affordable office market, while Multifamily properties have showed far more significant value increases between reassessment cycles, making 2021 one of the largest multifamily value years to date. Missouri also continues to be a strong center for logistics and manufacturing. The industrial hub has led to an overall rent growth, marking a likely increase in property value this reassessment cycle.
Illinois
2023 will be a quadrennial reassessment year for most Counties outside of Cook County. Appeal deadlines are set by the County and vary by Township. Deadlines usually run from Spring to end of the year, so approximately May – December. While projected commercial property increases are difficult to predict given the number of Townships and Counties throughout Illinois, we are expecting commercial properties, on average, see increases anywhere from 10% – 20% in their assessments.
Cook County, Illinois Commercial Real Estate Reassessments
2023 will also be the triennial reassessment year for the western and southern suburbs of Cook County, Illinois. Properties in Cook County are reassessed every 3 years. Only those properties in the southern and western suburbs of the County will be reassessed in 2023. Since the new County Assessor took office in 2018, assessments have been more unpredictable than in the past. We are expecting commercial properties, on average, to see increases anywhere from 15% – 30% in their assessments, some may see significantly larger increases depending on asset class.
