A successful tax appeal is founded upon application of valuation principles. Engineered Tax Services employ a uniquely effective approach to the tax appeal process incorporating a broad based valuation experience in conjunction with our cost segregation expertise. In this manner, the detailed cost analysis offered by cost segregation methodology enhances both the reliability and accuracy of the valuation process which is critical to a successful tax appeal. Our cooperative tax consulting services are delivered in the context of a team approach wherein we represent our clients’ best interests. Our team of professionals include attorneys, appraisers, engineers and environmental consultants as may be warranted on a case by case basis and dictated by applicable state law.

As illustrated below, property taxes are generally considered one of the highest fixed operating costs associated with the ownership of commercial real estate. Therefore, real estate taxes have a significant impact upon net income, property value and investment performance.

Insurance 6%
Administrative 13%
Security 5%
Grounds 2%
Utilities 19%
Maintenance 30%
RE Taxes 30%
Janitorial 10%

The example below illustrates the power of property tax reduction in the creation of asset value. Based upon an 8% capitalization rate, a reduction of $200,000 in annual property tax results in an increase of $2,500,000 in property value.