The county uses various methods and many factors to determine the fair market value of multifamily real estate for taxation purposes. An error or overestimate in applying any of those factors can translate into a steep increase in property taxes.
At The Law Office of Cathy Steele, we have a record of successful representation in property tax appeals for apartment buildings and other multifamily residential rental property. Located in Clayton, Missouri, we take cases in the city of St. Louis and in St. Louis County, St. Charles County and Jefferson County. Contact us today to find out if we can help.
Multifamily Real Estate Tax Appeals
Attorney Cathy Steele has 35 years of experience in an area of the law that few attorneys handle on a regular basis. She is knowledgeable about the methods used by assessors for valuing apartment complexes:
- Rental income from tenants
- Vacancy rates
- Market expenses
- Actual sales of similar apartment buildings
- Construction costs of a new complex, minus depreciation
- Net operating income, multiplied by a capitalization rate
We closely examine the county assessor's appraisal, and run the numbers using alternative methods to suggest a more realistic and reliable value. We have prevailed in local Board of Equalization hearings in the St. Louis area, and we have been successful in multifamily property tax appeals before the Missouri State Tax Commission.
— For one apartment building owner, we used an income approach to contest the reassessed value. The Board of Equalization reduced the fair market value by $4 million, resulting in approximately $45,000 in tax savings to our client.
— We also got an assisted living apartment building owned by a 503(c) religious organization exempted from taxation, saving about $140,000 per year.
— In another case, the Tax Commission recently upheld a reduction in valuation, based on a procedural error by the local assessor, which resulted in a 20 percent cut in the property taxes on our client's apartment complex.
To discuss a multifamily real estate tax appeal, call our Clayton office at 314-727-7551 or contact our lawyer online. We offer a free phone consultation, and take most tax appeals on a contingency fee basis.