Property taxes are one of the largest operating expenses for commercial real estate owners. For many properties — retail centers, office buildings, industrial facilities, multifamily complexes — taxes can represent 20-40% of total operating costs. Yet the majority of commercial property owners never challenge their assessments, even when they are clearly too high.
Step 1: Understand How Your Property Is Assessed
Before you can reduce your taxes, you need to understand how your assessment was calculated. Assessors typically use one or more of three approaches to value commercial property: the income approach, the sales comparison approach, and the cost approach. Each has its strengths and weaknesses, and assessors do not always use the most appropriate method for your property type.
The income approach is the most common method for income-producing commercial properties. It estimates value based on the property's net operating income (NOI) divided by a capitalization rate. If the assessor uses an incorrect NOI or an inappropriate cap rate, your assessment will be inflated. Our commercial property tax assessment guide explains these methods in detail.
Step 2: Review Your Assessment Notice
Every year, your local assessor sends a notice showing your property's assessed value. Compare this to what you believe the property would sell for on the open market. In Michigan, the assessed value should equal 50% of true cash value. In Indiana, it should reflect the property's market value-in-use. In Ohio, it should equal 35% of fair market value.
If the numbers do not line up, that is your first indicator that you are paying too much. But do not stop at the headline number — review the individual data points the assessor used. Is the square footage correct? Are they accounting for functional obsolescence? Are they using comparable properties that are actually comparable? Errors in the underlying data are among the most common reasons assessments come in too high.
Step 3: Gather the Right Evidence
A successful property tax appeal depends almost entirely on the quality of your evidence. You need to demonstrate that the assessor's value is wrong — not just that you think it should be lower. The strongest evidence includes recent sales of comparable properties, income and expense data for your property, independent appraisals, and documentation of property-specific issues like deferred maintenance, environmental contamination, or declining tenant occupancy.
Different jurisdictions weigh different types of evidence. In Michigan, the Tax Tribunal gives significant weight to the income approach for commercial properties. In Indiana, the PTABOA process focuses on whether the assessment reflects market value-in-use. In Ohio, the Board of Revision evaluates all three approaches. For a detailed breakdown, see our guide on property tax appeal evidence.
Step 4: File Your Appeal on Time
Every state has strict deadlines for filing property tax appeals. Miss the deadline and you lose the right to challenge your assessment for an entire year. In Michigan, you start at the Board of Review in March and can escalate to the Tax Tribunal by May 31st. In Indiana, assessments can be challenged through the county assessor and then the PTABOA. In Ohio, the Board of Revision accepts complaints annually with a March 31st deadline in most counties.
Our comprehensive property tax deadlines guide covers every filing window across Michigan, Indiana, and Ohio.
Step 5: Present Your Case Effectively
Presenting your case to a Board of Review, PTABOA, Board of Revision, or Tax Tribunal is not just about having good evidence — it is about presenting that evidence clearly and persuasively. Hearing officers and board members review hundreds of cases. A well-organized submission that leads with the strongest evidence and directly addresses the assessor's methodology stands out from the crowd. For a complete look at the process, see our property tax appeal process guide.
Step 6: Consider Working with a Professional
Property tax appeals are technical. They involve valuation methodology, legal procedures, and specialized evidence that most property owners are not familiar with. An experienced property tax consultant can often identify issues the property owner missed, present evidence more effectively, and negotiate settlements that produce better results.
The most important factor when evaluating a consultant is their fee structure. Contingency-based firms only get paid if they save you money, which aligns their interests with yours. Our guide on property tax appeal costs explains what to expect. At EPTA, we work entirely on contingency — there is no fee unless we reduce your taxes.
How Much Can You Save?
Savings vary widely depending on the property, the jurisdiction, and the degree of over-assessment. However, it is not uncommon for commercial property owners to see reductions of 10-30% on their assessed values. On a property with a $2 million assessment, even a 15% reduction could save $15,000-$30,000 per year depending on the local millage rate. And in most jurisdictions, a successful appeal lowers your assessment for multiple years — making the cumulative savings even more significant.
Learn more about typical outcomes in our property tax appeal success rate guide, and explore whether dark store theory may apply to your retail property.
Start with a Free Assessment Review
The first step is simple: request a free assessment review. We will analyze your property's assessment, compare it to market data, and tell you whether an appeal is worth pursuing. If it is, we handle everything — from filing to hearing representation — on a contingency basis. You pay nothing unless we save you money.
