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LAND-COMMERCIAL

    Total Assessed Value Reductions: $ 250,000,000

    Total Tax Savings: 2.5+ Million Dollars

     

     

     

     

     

    Case Study #1: Industrially zoned land purchased for commercial development!

    Case Study #2: Partial ownership transfer creates huge property tax increase!

    Case Study #3: County creates “owner’s nightmare” by assessing property at 4 times its purchase price!

     

    Case Study #1: Industrially zoned land purchased for commercial development!

    Total Tax Savings: $150,000 (8 Year Period).

    A small group of investors pooled together to buy a 34 acre industrial lot near the Mexican border in San Diego for $2,200,000. Several years later the assessed value had increased to $2,492,646 due to the ANNUAL inflation factor called for in Proposition 13. In the first year Protax LLC reduced the value by 65% and two years later negotiated a reduced value of $530,000 reducing the value by 79%. On average, this small group of investors saved $19,000 per year for eight years.

     

    Case Study #2: Partial ownership transfer creates huge property tax increase!

    Total Tax Savings: $20,000

    Partial transfers are becoming more common as properties are divided among multiple partners with complex ownership interests. Unfortunately, the ramifications on the property taxes is not always understood when partners transfer these partial interests between themselves. In this case, a 50% transfer from one owner to another resulted in a complete re-assessment of the entire property causing the taxable value to double. Re-assessments usually result from a “change in ownership” which is a very complex issue as evidenced by the numerous pages throughout the Revenue & Taxation Code which outline and define what does and does not constitute a change in ownership. In this case, the entire property was re-assessed when only 50% of the property was subjtect to a re-valutaion, and therefore Protax was able to obtain a base year value correction permanently reducing the value on this 85 acre commercial lot from $3,700,000 to $1,700,000.

     

    Case Study #3: County creates “Owner’s nightmare” by assessing property at 4 times its purchase price!

    Total Tax Savings: $180,000

    Imagine buying a piece of property and then receiving a notice from the county that you were being assessed at FOUR times your purchase price. That is exactly what happened to our client after receiving an assessment notification from the county for $20,000,000, even though he paid only $5,000,000 for his 162 acre commercial lot. Needless to say the owner did not have the money to pay these real estate taxes, to make maters worse the county refuesed to accept partial payments so he was unable to pay the amount that he believed he truly owed based on his purchase price. As a final insult the county assessed a 10% penalty and was accruing interest at 1 ½% per month.

    Protax LLC successfully argued that the comparable sales used by the assessor to establish this ridiculously high valuation were without merit. In the end, the assessor relented and assessed the property at its original purchase price of $5,000,000. Protax LLC then went about the task of having the penalties and interest removed thereby producing a total tax savings of $180,000. Most importantly the value was reduced permanently thereby ending this owner’s nightmare.