September 16, 2021

Volume XI, Number 259

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CLIENT ALERT – Tax Assessment Appeal Advisory

The global COVID-19 pandemic impacted and disrupted nearly every aspect of our daily life in the past year, and that includes real estate values.  State-wide shutdown orders and occupancy limits have led to significant losses in rental income and general profits for many local businesses and companies. As a result, property owners now have sizable tax bills for commercial property that’s considerably decreased in value.

If you own commercial property and suffered a loss in rental income or have increased tenant vacancies caused by the COVID-19 pandemic, you should consider filing an appeal of your tax assessment. The Allegheny County Board of Assessment does not reassess the taxable value of commercial properties every year and the only way to obtain a reduction in your tax assessment is by filing an appeal before March 31, 2021.

For tax assessment purposes, commercial and industrial property valuations are complex, and the market value of commercial property is often determined through an evaluation of the “Income Capitalization Approach.” The Income Capitalization Approach looks directly to the relationship between a property’s potential income and its market value in reviewing investment elements such as income revenue, expenses, investment risk and property stabilization.

If your commercial or industrial properties are producing less income, resulting in a disproportionate amount of rising costs and expenses, you may have justification for a decrease in your tax assessment.

The officials evaluating your tax appeal at the Board of Property Assessment or at the Board of Viewers are well-versed on the intricacies of commercial and industrial real estate value and the considerations necessary to determine the taxable value of a property.  

©2021 Strassburger McKenna Gutnick & GefskyNational Law Review, Volume XI, Number 71
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About this Author

Kimberly S. Tague Real Estate Attorney Strassburger McKenna
Shareholder

Kimberly S. Tague is a Shareholder at Strassburger McKenna Gutnick & Gefsky and the Chair of the Firm’s Real Estate Group. She has been with SMGG since 2012 and focuses in the practice areas of real estate law and complex commercial and civil litigation.

Ms. Tague represents clients in a variety of real estate matters including transactions, acquisitions, sales, title issues, residential and commercial leasing, property management, landlord/tenant disputes, planned community and condominium development and management, eminent domain, zoning...

412-281-5423
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