Property Tax Appeals: A Practical Guide for Real Estate Owners

Property taxes are one of the largest ongoing expenses for real estate owners. But in many cases, tax assessments don’t reflect today’s market realities — and that can mean you’re paying more than you should.

A well-prepared property tax appeal can reduce costs and protect asset value. If your latest tax notice seems out of sync with current market conditions or the actual earning power of your property, you may have a strong case.

Where Appeal Opportunities Often Arise

Office

High vacancy and weak demand for older buildings may not be reflected in current assessments.

Multifamily

In growth markets, heavy new supply has slowed rent growth and increased concessions, but assessments may still assume peak rental conditions.

Senior Living

Rising labor costs and uneven occupancy can erode profitability. Assessments sometimes blur the line between real estate value and operating business value, leading to inflated numbers.

Industrial

After years of growth, oversupply in some markets has softened rents and occupancy. Assessments may still assume peak-era performance.

Retail

While grocery-anchored and essential retail remain stable, properties with turnover or prolonged downtime may be overvalued if assessments don’t capture income pressure.

Hospitality

Hotels are highly sensitive to occupancy and RevPAR swings. Sometimes intangible elements like brand or management agreements are wrongly included in the taxable value.

The Appeals Process: What to Expect

Appeals are time-sensitive, and most jurisdictions follow a three‑step path:

• Administrative Review – Informal exchange of facts and valuation evidence with the assessor.

• Board of Review/Equalization – A formal hearing where the case is presented and recorded.

• Court or Tax Tribunal – If necessary, litigation with discovery, expert testimony, and a binding decision.

Missing a filing window could delay potential savings for an entire year, so preparation is key.

How Property Value Is Tested in Appeals

• Cost Approach – Replacement cost, minus depreciation and obsolescence.

• Market (Sales) Approach – Comparable sales adjusted for age, quality, and tenancy.

• Income Approach – Capitalized net operating income that reflects real-world vacancy, concessions, expenses, and cap rates.

Pre-Filing Checklist for Owners

• Evidence of market shifts (leasing comps, vacancy trends, broker opinions, sales data).

• Assessment history and notices (including any recent changes in method or classification).

• Current rent roll and two years of operating statements (including concessions and tenant incentives).

• For operating assets (hospitality, senior living): ADR/RevPAR or census data, labor cost trends, and management/franchise terms.

• Filing deadlines by county (strictly enforced).

Bottom Line

Appealing property taxes can create meaningful savings and ensure your property is valued fairly. With careful preparation — and, when appropriate, expert support — real estate owners can reduce one of their largest expenses and improve long-term asset performance.

Next Step: Review your latest assessment closely. If the numbers don’t reflect today’s market, it may be time to consider an appeal.

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This is not an offer or solicitation to buy or sell any securities. 

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Some of the risks related to investing in commercial real estate include, but are not limited to: market risks such as local property supply and demand conditions; tenants’ inability to pay rent; tenant turnover; inflation and other increases in operating costs; adverse changes in laws and regulations; relative illiquidity of real estate investments; changing market demographics; acts of God such as earthquakes, floods or other uninsured losses; interest rate fluctuations; and availability of financing. Investments in real estate or real estate securities are not guaranteed and have the potential to suffer losses.

This site provides brief and general description of certain tax strategies including Opportunity Zones, Sections 1031, 1033, and 721 Exchanges. There are various risks related to purchasing securities as part of any planning strategy, including tax complexity, illiquidity and restrictions on ownership and transfer. RCX Capital Group and its representatives do not provide Tax Advice. Because each prospective investor’s tax implications are different, all prospective investors should consult with their tax advisors.