How to Appeal Your Commercial Property Tax Assessment

May 5, 2023

Introduction

If you’ve received a commercial property tax assessment that you believe is too high, you may wonder how to appeal it. The good news is that you have the right to appeal your assessment, and there are a few things you can do to increase your chances of success.

Step 1: Understand the Appeal Process

The first step in appealing your commercial property tax assessment is understanding the appeal process. Colorado has a unique set of rules that apply to your appeal. Check out our FAQ page for some of the basic information.

In general, the appeal process will involve the following steps:

1. Gather evidence. 
2. Analyze your property’s value. 
3. File an appeal with the local assessor’s office.

If You’re not satisfied with the decision of the local board of appeals, you can appeal to the Board of Equalization.

Step 2: Gather Evidence

The next step in appealing your commercial property tax assessment is to gather evidence to support your case. This evidence may include:

• Appraisals from qualified appraisers
• Sales comparables for similar properties in your area
• Documentation of property defects or any recent improvements you’ve made 
• Income and expense information
• Data on capitalization rates

The more evidence you can gather to support your case, the stronger your appeal will be. Remember, Colorado has a base period from January 2021 through June 2022. All data must come from that time period. 

Step 3: Examine the Evidence

Once you’ve gathered your evidence, you must analyze the information to determine your requested value. This means:

• Prepare a valuation using sales
  • Making adjustments to the comparable sales, especially for time/market conditions
  • Use truly comparable sales
• Estimate a value based on the property’s actual income
  • Analyze your income statements excluding any non-deductible expenses
  • Apply an appropriate cap rate to your net income
• Review the assessor’s description of your property for accuracy

From this analysis, you will determine what a reasonable value 

Step 4: Prepare an appeal

We typically prepare a written appeal. Be sure to:

• Identify your property clearly
• Be sure to sign the letter as the property owner
• Be clear and concise
• Highlight the analysis key points that support your appeal
• Answer any questions that the assessor may have

Step 5: Receive a Decision

In July or August, the assessor will issue a Notice of Determination informing you of their decision. If you’re unsatisfied with the decision, you can appeal to the Board of Equalization.

Conclusion

Appealing a commercial property tax assessment can be daunting, but saving money is possible if you are successful. Following the steps outlined above can increase your chances of winning your appeal.

Please click here if you need professional help with your property tax appeal. We have over 80 years of combined experience in property tax appeals.