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Ask These Questions about Your Real and Personal Property Taxes Today and Reduce Your Tax Liability Tomorrow

MarksNelson's David Belpedio works with mid-market companies nationwide to help minimize state and local taxes and locate better tax credits and incentives. The new year brings resolutions to improve our physical fitness (always a good thing).  But what about your fiscal fitness?  Are you paying the right amount of taxes on your real estate?  What about on your business personal property?

Take a few minutes to answer these questions. It could add up to significant savings.

Real Property

Real estate taxes are based on the assessment of your property.   Was your assessment fair?  Many factors affect your tax assessment. Take a look at your assessment and ask yourself these questions:

  • Did the assessment office have the right number of square feet for your building(s) or your land?
  • Has the assessment office classified your parcel correctly i.e. Class A, B, C.?
  • Are the uses of your building identified correctly? Do the assessment records show you have 2,000 square feet of office when you really only use 1,200 square feet for office use.
  • Did the assessment department correctly understand the condition of your land and buildings?
  • Did the assessment take into account the impact of wetlands, creeks and, slopes on the subject property?
  • Is the assessment department correctly using the “valuation date” for tax purposes?
  • Is the assessment department correctly using information regarding the sales price or condition of other properties that were used to establish the subject’s value?
  • Does the assessment department understand how zoning affects your value?
  • Has the assessment department incorrectly classified personal property as part of your real estate value?

As you can see there are many factors that can influence the assessment of your property.   Errors in any of the above can lead to significantly higher taxes.  If you suspect an error, contactDavid Belpedio or your MarksNelson professional today.   Don’t delay, many property tax appeal deadlines are in March or April.

Business Personal Property

Ask yourself these key questions when you fill out your personal property rendition.

  • Are you taking advantage of state-allowed exemptions?
  • Are you removing state-allowed exclusions from the acquisition cost?
  • Are you reporting your assets in the appropriate equipment class?
  • Are you assigning the appropriate useful life to your property?

Many costs that are capitalized for federal tax reporting are not taxable for business personal property tax purposes.  Even the useful life or classification of an asset can vary between capitalization definitions and county and state definitions.  If you are simply printing your fixed asset list and sending it to the county with your property tax return, you may be missing out on valuable, tax-saving opportunities.

MarksNelson’s State and Local Tax team can review your asset listing, analyze your company, and potentially reduce your property tax liability.  Don’t delay, the Missouri filing deadline is March 1 and the Kansas filing deadline is March 15.  In most counties on both sides of the state line we can request an extension if needed.

Are you an early bird and already filed your return?  No problem, we can still review your filing, file an amended return, and/or negotiate with the county to remove the over-reported amounts.  Appeal deadlines are May 15 in Kansas and June 16 in Missouri.

Our professionals understand your business and how to maneuver through the regulatory obstacle course,   In fact our clients typically receive an average reduction of 12 percent in their property tax liability when MarksNelson appeals their real and business personal property assessment.  For more information contact David Belpedio or your MarksNelson professional today.

About the Author

David BelpedioView all posts by David Belpedio
David Belpedio – Leader of MarksNelson’s State and local tax group. He specializes in providing State and local tax consulting and compliance services.