Review your tax bill

One issue that bears close examination both at home and at business is a review of your tax bill. Significant savings may be realized if there are mistakes and you may be able to get refunds on prior tax bills. In general, real estate tax bills should be reviewed as part of the due diligence process when a commercial property is purchased. In addition, an annual examination of the tax bill should be scheduled. It is possible to challenge over-assessments of tax bills for commercial properties, just as it is for personal property, if questions are raised in a timely manner and in accordance with the proper procedure. So many properties are listed in the system of any jurisdiction that it is reasonable to expect a certain number of errors to occur. There are three main areas to examine: clerical errors, such as the transposition of numbers; classification of the property; and a comparison of the property's tax assessment to that of other, similar properties. If inequities are uncovered, there is recourse. However, it is critical that the taxes are paid in a timely manner even if the amount seems to be wrong. Otherwise, penalties and interest may be assessed for non-payment or, if the taxes remain unpaid for a certain amount of time, depending on the jurisdictions, a tax lien may be filed against the property. Any of these options can be costly and may affect your creditworthiness. The better choice is to set up an appointment with the tax assessor to discuss the situation or to determine the proper grievance process. It is often a good idea to have your accountant present with you at any hearing that may be scheduled. Robert Gilman, CPA is a partner at Anchin, Block & Anchin LLP, New York, N.Y.