Stop Overpaying: 7 Property Tax Mistakes to Avoid
Commercial and industrial property taxes are one of the largest non-controllable operating expenses on the P&L. While you can’t opt out of paying them, you can manage, contend, and influence them—often in ways that produce material savings. Yet many corporate taxpayers treat property tax as a fixed, back-office cost. Small process gaps can compound into six- and seven-figure overpayments.
Below are seven common mistakes that lead to overpayments, and how to prevent them.
- Accepting Assessments Without Review
Too many corporate taxpayers simply file away their assessment notices and pay the bill. Assessors rely on mass appraisal models that don’t always reflect the realities of a property, and even the best assessors can make mistakes. A disciplined annual review of checking value, classification, and assumptions will often reveal meaningful appeal opportunities. - Using Poor or Outdated Asset Listings
Personal property assessments often rely on fixed asset ledgers that are incomplete, misclassified, or full of retired assets. When schedules are filled with ghost assets or incorrect lives, assessments are inflated. Regular clean-up, physical inventories, and improved coding can generate immediate savings. - Ignoring Functional and Economic Obsolescence
Mass appraisal models often don’t capture operational realities. Older plants with inefficient layouts, excess capacity, or specialized buildouts may be worth far less than replacement cost. Documenting functional obsolescence and market conditions will help support lower assessed values that will reflect the realities of the property. - Missing Abatements, Exemptions, and Incentives
Many jurisdictions offer abatements, exemptions, and credits for manufacturers, logistics users, and investors creating jobs or placing capital. Examples include machinery and equipment exemptions, pollution control exemptions, and multi-year real property abatements. Failing to identify and apply for these programs leaves money on the table. - Treating Property Tax as a Pure Back-Office Function
AP and tax departments are often burdened with a multitude of responsibilities outside of property tax. However, property tax is inherently strategic and requires valuation expertise, negotiation, and specialization. Developing valuation arguments, documenting obsolescence, navigating deadlines, and negotiating with assessors takes focus that internal teams rarely have capacity for. Dedicated expertise helps convert compliance into value creation. - Waiting Too Long to Act
Appeal windows are short and vary by jurisdiction. Corporate taxpayers often spot issues after deadlines or only respond once a large increase hits the bill. Maintaining a calendar of key dates and monitoring changes year-over-year preserves leverage for negotiation and appeal. - Going It Alone on Complex Assets
Special-use industrial facilities, logistics hubs, and multi-state portfolios are inherently complex. Relying solely on internal staff who rarely negotiate or litigate assessments can limit results. Partnering with experienced professionals helps uncover arguments, data, and market support that can assist in improving results.
Property tax may never be the most glamorous topic, but it remains a reliable way to protect NOI and asset value. A shift from “just pay the bill” to “treat this like a managed, strategic expense” turns these seven mistakes into levers for recurring savings and stronger returns.
If you’re looking for a partner in managing these strategic expenses, INTAX can help. We provide property tax solutions nationwide, helping clients reduce both their property tax liability and their administrative burden.
