Article

2024 commercial property reassessments

Jan. 17, 2023

Achieve 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. Baker Tilly'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.

2024 reassessments nationwide

Baker Tilly 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, Pennsylvania is set for March 31, 2024. 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, 2024. Further, a recent court ruling which reopens the 2022 tax year to appeal opportunities is also in effect with the same March 31, 2024 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.

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 multifamily and industrial. 

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.

Ohio

Major counties in Ohio have had their values reassessed for 2024. Like many other states, Ohio is on a three-year reappraisal schedule. The major counties currently undergoing reassessment in 2024 in Ohio are: Delaware, Franklin, Hamilton, Butler, Montgomery, and Summit County. 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, 2024, and March 31, 2024. 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. 

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, 2024, in the municipality where the property is located. Some municipalities may also extend the BOAA filing deadline to March 20, 2024. 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. 

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 specialists to develop an appeal strategy custom to the timing, circumstances, and appeal type for your entire Maryland portfolio. 

Illinois

Most counties in Illinois, outside of Cook County, were reassessed in 2023, per the quadrennial reassessment schedule.

References:

[1] Tax bills are due upon receipt and become delinquent after Jan. 31
[2] Notices of appraised value are mailed typically by April 15
[3] Appraisal Review Board hearings are conducted May 15 – July 25
[4] Litigation filing deadline – 60 days after receipt of notice of final order

The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.