Oh, you couldn’t know that the ancient Roman deity Janus was the god of property taxation? Don’t feel uninformed; I myself just made this as much as make a point!
Janus is known for three things:
1. as god of gates and doors, he symbolizes
all beginnings;
2. he is the god to whom jan is known as; and
3. he’s represented by two opposite faces.
So, why, you may ask, did I choose to anoint Janus the god of property taxation? Well, for that selfsame three reasons alluded to above.
First, the start of the year, January, may be the essential time for you to do your home tax planning the year. Yes, Virginia, there’s such a thing as property tax planning. It may not be as elaborate or involved as federal tax planning, but the pay-offs for small investments of time could be exponentially greater.
Next, the two-faced god is a viable symbol for the advocacy in pursuing property tax reduction appeals. More about this below.
January is property tax planning month
For pretty much all states, the state tax assessment date is either January 1 or December 31. What this means is two things. First, the worthiness and therefore the condition “of all property for tax assessment purposes hinges on its status by the assessment date. This is also true for both valuation and exemption issues. Three examples will help to illustrate this point.
Condition on the assessment date governs for the whole year
First, let’s imagine a factory burns to the ground December 30. As of a January 1 assessment date, no value whatsoever may be positioned on your building by the tax assessor. If the same catastrophe occurs January 2, full value might be assessed against the building for the whole year, even though the owner had technique property for just the first two days of the year! Property tax statutes are complicated and hard enough to apply even under ideal conditions, and for that reason the courts have enforced bright line rules such as these to be able to assist tax assessors in administering the tax assessment statutes.
Now, before I proceed, let me make it perfectly clear the example above is NOT intended as property tax planning advice to Joey the Torch! Instead, this means that if you’ve repairs and enhancements to create for your residence or commercial property, if these aren’t completed” or at least not substantially completed” by the assessment date, chances are that the tax assessor will not be able to tax them before following tax year, thereby providing you a totally free year’s use without taxation. This is what is intended by “tax avoidance” planning measures intended to minimize tax burdens. It is distinguished from “tax evasion “the utilization of unlawful measures–which we neither agree to nor advocate.
Avoiding newbie of taxation on new or rehabbed improvements
Second, so that as a corollary towards the fiery example discussed above, if new construction or rehabilitation is going to be completed toward the finish of the twelve months, you might want to delay receiving a certificate of occupancy or connecting electricity or plumbing until following the assessment date again using the reason for avoiding taxation till the year after. Be sure to seek advice from your property tax adviser ahead of time about this issue, since regulations differ from state to state to say nothing of enforcement varying from jurisdiction to jurisdiction.
Qualifying for exemptions residential and institutional
Third, exemption and special classification issues are decided depending on facts in position as of the assessment date. So, if your state requires qualifying ownership and use as of January 1 to become eligible for exemption, make sure title is transfered for your new home, or to your charitable organization’s new facility no after December 31, and that the actual use required for exemption is established and capable of being demonstrated (through photographs or otherwise) on or prior to the assessment date. The same holds true for special classifications, for example greenbelt or agricultural classifications. Again, meet with a property tax professional regarding requirements in your jurisdiction.
Filing deadlines don’t forfeit a valuable tax benefit!
All tax benefits have annual deadlines. Check with your tax assessor to see what they’re. If you miss the filing deadline, the consequence may very well be that you forfeit the advantage for any year or even more! And remember, filing means received through the appropriate official. Merely placing the document within the mail is not the legal same as receipt; the papers actually have to reach their ultimate destination. Don’t underestimate the value of hand delivery and obtaining a date-stamped copy for the records. These pointers apply to institutional and agricultural exemption filings, tangible personal property (furniture, fixtures and equipment) tax returns, tax reduction appeal petitions, and then any other communication or filing using the taxing authorities.
Put your best face forward in your property tax reduction appeal
While you must always tell the truth using the tax assessor and other taxing authorities, there isn’t any shame in marshaling just those facts which favor your side from the appeal; in the hearing, the tax assessor may certainly not disclose the contract details which have to do with your property, but only those which support their assessment. You’d do well to emulate this situation. Hence, the notion of turning forward the face area which helps your claim to reduced valuation.
Conclusion
Well, that’s it. You’ve now learned why I chose the god Janus because the god of property taxation. So, while you build your new year’s resolutions each year, make sure to increase the list those property tax reduction planning measures which will put profit your pocket and allow you to take advantage of all the property tax benefits the government provides.