Small Business Consultancy
The practice of helping business organizations improve their bottom line covers a number of services. Small business consultancy may target management assistance, process analysis, implementation of technology as a means to streamline services and other areas of performance enhancements. One area in particular to small business that can be implemented is their property tax analysis.
Property Tax Consultancy
Many small businesses are over-assessed and can save thousands of dollars to their bottom line by addressing that situation. Unlike the assessment of residential properties, which are assessed at fair market value, commercial businesses are assessed differently. Their assessment is based on an income bases. Get the full run-down of this unique business detailed in a Free e-Book by dropping your email into the form on the right.
There are 3 method for determining value for a property. (See Evidence in Propery Tax Appeals http://www.in.gov/ibtr/2420.htm )
Cost approach – based on actual construction costs or for an aged improvement, construction costs less depreciation.
Sales comparison approach - which determines fair market value based on comparison of similar properties and making adjustments for their minor differences.
Income approach – assumes that buyers will not pay more for an income producing property than they would for an equal substitute assuming the same risk and return. The income method requires capitalizing the properties income or using a gross rent multiplier.
If an apartment complex has vacancies, if a strip mall has unrented space, if a factory has to downsize because it experiences less demand for its product, if there is any financial loss that affects the bottom line, if certain space is unrentable or unusable then those businesses could benefit from a property tax review and appeal.
The business climate is ever changing and finding clients that can benefit from this type of small business consultancy is limitless. Contingency fees can reach six figures. Not only do you profit, the client profits immensely.
The only state that requires a license for property tax consultants is the state of Texas. With larger clients one may need to have an arrangement with a licensed property tax appraiser and an attorney.
In any case, the property tax assessor has the authority to lower a property tax if he is presented convincing evidence. The assessor is the first level of appeal and an agreeable conclusion can often be arrived at with a simple meeting to set the record straight.
Residential property tax appeals is an area the some focus on since there is virtually no completion for business. The assessment error rate is quite high. The National Taxpayers Union informs us that as many as 60% of all homeowners are over-assessed and not in line with their home value. ("How To Fight Property Taxes" 2004 p.1). Finding clients in that arena is very easy and contingency fees are much higher. One can charge a small fee for a preliminary overview for their client and if the reward is significant enough, a contingency contract can be initiated.
No matter what avenue of pursuit, commercial or residential, small business consultancy is a much needed service that stands the test of time. As long as there are property taxes, there is a need for a voice to help those who are over-assessed.
Don't forget, get the full run-down of this unique business detailed in a Free e-Book by dropping your email into the form on the upper right.
Guaranteed: You Earn While You Learn Lowering Property Taxes for Your Clients.