Commercial leaseholders in New York take comfort in knowing that the NY Court of Appeals decided to move forward with an equitable property tax bill.

Commercial properties in New York have the right to fair assessment, which includes accurate valuation, classification and exemptions. If a taxpayer is being overcharged because of any one of these things, their only response is to file a tax grievance.

A property tax assessment can be challenged by an aggrieved party. The most obvious aggrieved

Commercial leaseholders in New York take comfort in knowing that the NY Court of Appeals decided to move forward with an equitable property tax bill.

Commercial properties in New York have the right to fair assessment, which includes accurate valuation, classification and exemptions. If a taxpayer is being overcharged because of any one of these things, their only response is to file a tax grievance.

A property tax assessment can be challenged by an aggrieved party. The most obvious aggrieved party is the property owner. Still, case law and custom reasonably extends this right to include net tenants, contract vendees, mortgagees and others whose pecuniary interest are affected.

A net tenant’s right to challenge property taxes is fair, because a lease has a list of taxes and other expenses that typically falls on the tenant. A net tenant would not want to miss out on one of their most expensive items. A tenant may be present in the home and able to file their taxes before they expire, due to these benefits.

It is a new development that net tenants frequently file tax challenges in response to this legal interpretation and custom.

Unfair legislation made it so only the property owner could challenge a tax assessment.

Property tax assessments began to shift in favor of municipalities after the appellate NY Court of Appeals issued decisions that precluded a net tenant’s right to challenge assessments. For example, contract vendees could normally file a tax assessment challenge simply as a matter of due diligence; however, now they needed the seller (still the legal owner until closing) to meet the deadline and file their own challenge.

Unless you were the clear, titled owner of the property, it could be difficult to challenge an unfair tax assessment. You may need to chase down an uninterested owner’s cooperation and your case would be dismissed.

New York’s highest court, the Court of Appeals, recently clarified the law and restored fairness.

If a municipality is imposing high taxes, the person responsible for paying may file an appeal in court. In DCH Auto v. Mamaroneck, a car dealership occupied their property as a net tenant with an obligation to pay taxes, so they filed the grievance with the town and won because only owners of the property could do it, not tenants.

Forchelli Deegan Terrana LLP filed an amicus curiae brief to the court on behalf of their client, the International Council of Shopping Centers. This is a global trade organization containing thousands of commercial net lessees, who wished to see their voices represented in the court case.

The Court of Appeals ruled that a tenant such as DCH had the right to challenge its tax assessment, even without the owner filing himself. This validated a long-accepted custom: the taxpayer is the one who has the right to challenge its tax assessment, whether it is the owner, the tenant, or possibly a third party.

After the DCH Auto decision, new best practices have emerged for commercial taxpayers. First, all taxpayers need to review their assessments annually. Second, landlords and tenants should decide who has the responsibility to review and challenge the taxes. Finally, contract vendees should have a right to challenge property taxes.

If you are in the commercial real estate business, you should review your tax bill annually and speak with an attorney if you have any questions about it.

Guilford Connecticut County Manager proposed 855 million budget for fiscal 2022-2023. The manager’s budget is always changed, but still has a lot of weight in the commission’s final decision. In turn, the manager’s recommended budget acts as the “rough draft” for what will happen to it in June. Halford’s budget for this year is $855 million, and it recommends keeping the county’s tax rate at 73.05 cent’s per $100 of assessed property value. 

Indeed, what sounds like a good thing for

Guilford Connecticut County Manager proposed 855 million budget for fiscal 2022-2023. The manager’s budget is always changed, but still has a lot of weight in the commission’s final decision. In turn, the manager’s recommended budget acts as the “rough draft” for what will happen to it in June. Halford’s budget for this year is $855 million, and it recommends keeping the county’s tax rate at 73.05 cent’s per $100 of assessed property value. 

Indeed, what sounds like a good thing for taxpayers may actually be a bad thing for them, since Guilford County is about to reassess the value of all property. This means that citizens will end up paying significantly more in taxes than in previous years. The Guilford County School District will receive a $16 million increase in funding. This is the largest one-year increase that the county has ever given Guilford Connecticut County Schools. 

The manager’s 2022-2023 budget includes 51 new county positions, which are meant to address service demands and protect county assets. New positions will also bring the county’s employee-per-capita ratio more in line with that of the state. Furthermore, the Guilford Connecticut County Health Department will be hiring three positions in total. Halford’s budget also includes a new position to advance the county’s model of mental health treatment. 

Currently, there are only two family justice centers in Guilford Connecticut County. The manager for the centers told the commissioners that they are continuously getting used a lot. The new budget invests in public records requests, and also brings two new positions to the Guilford County Clerk’s Office and the Purchasing Department. Two new positions will counsel the county about its finances, one of which was created in the Paralegal Department. Funding for technology and security services has been increased. Most local governments have been experiencing cyber attacks, partly because of a lack of IT staff. 

The board of commissioners recently appointed more planning positions in order for the developer’s frustration to be decreased. Three new positions have been created at Environmental Services to provide added attention to illegal dumping and to interact with the county’s network of waste haulers. Fifty million dollars in extra money for education capital needs has been approved by the voters, so their plan will be used to calculate when and what the money will be used for. The budget also strengthens the county’s savings account so it can better handle emergencies. 

The manager’s budget is up to a vote by the nine-member Board of Commissioners. They have to be a majority approval for the Gilford Connecticut budget.

Warehouse space is dwindling in the US due to a rise in online spending, an import surge, and growth in safety stock. Rent prices have increased as a result of new business competition for these properties. Experts believe that the rental rates will continue to grow, as it has in the past. This is likely to have a considerable impact on American industry and logistics real estate. Rent prices are soaring nationwide due to the shortage of available warehouses. Warehouses are demanding higher negotiated rents

Warehouse space is dwindling in the US due to a rise in online spending, an import surge, and growth in safety stock. Rent prices have increased as a result of new business competition for these properties. Experts believe that the rental rates will continue to grow, as it has in the past. This is likely to have a considerable impact on American industry and logistics real estate. Rent prices are soaring nationwide due to the shortage of available warehouses. Warehouses are demanding higher negotiated rents now than asking prices. This growth in asking rents comes after they increased by 8% over the last year. 

Logistics companies are bidding against each-other on the cost of warehouse space, and this is causing prices to rise. The price is increasing fastest near ports in major cities, and Southern California is one such area where renting a warehouse has increased by 24%. Across the whole of America though, the lack of warehouse space means that companies are having to pay more, with all four regions seeing rent requests increase. 

How the Warehouse Shortage Affects The Economy 

When a crisis disrupts the supply chain, fulfilling orders can become almost impossible without some stock on hand. This is why lean manufacturing and JIT strategies can have major limitations. It’s also crucial to carry supplies for your customer base, even if demand has decreased in some areas. Businesses need to prepare for the next crisis by being prepared with safety stock, which they get by buying more inventory than usual. These include stocks of PPEs, which are growing in importance after COVID. 

How E-commerce Demand is Affecting the Price of Rentals 

Retailers are shifting away from in-person shopping to e-commerce, which has created a scarcity of space for wholesalers and warehouses. Certain businesses closed their brick and mortar stores due to the pandemic and have been focusing their efforts into their online store. The employees of these stores determined that JIT logistics was necessary for the company and are now stocking up on larger inventory in order to keep up with demand from online shoppers. People are returning to shopping in person, but it is not clear yet how much retailers will pivot back to brick-and-mortar stores. With the safety of the population increased due to vaccinations, more people are feeling comfortable with returning to normal societal behaviors and e-commerce sales have hit record levels. With the increased preference for online shopping, stores are more likely to keep their shuttered stores. 

Consumer sentiment has been volatile for the past few years, but is predicted to rise. Consumer sentiment rose to 88.3 in April 2021, but then when down to 81.2 in July 2021. The index has gone up since last year. It was one of its lowest points during the pandemic in July 2020. However, it was still significantly lower than in July 2019. To guarantee a strong supply of merchandise, businesses may wait before they make buying decisions. This holding pattern can also influence customer confidence as well. 

In contrast to the rest of construction, warehouses in particular experienced a large year-over-year increase. It is uncertain how increased warehouse space may fix the underlying problem, which is that priorities have changed as a result of an unprecedented economic crisis. Experts in the industry say rent rates will continue to rise over time, with Carolyn reporting that Cushman & Wakefield does not predict an end for rental rate growth. 

The logistics industry will experience a shortage of labor in the future. Solutions like automation, which are already important in the industry, may become more mainstream as demand for storage skyrockets. Similar to internet of things devices and autonomous mobile robots, automation may move from being a cutting-edge investment to more of a mainstream warehouse tool in the future. There could be an increase in jobs if online shopping continues to grow, as they would be needed for e-commerce fulfillment. The number of labor-intensive jobs would increase and this could be good for the economy. Retailers are using new tools to quickly quantify the size, space, and productivity of their warehouses. Data-collection tools help retailers gather information about their location inventory, warehouse traffic, and site productivity. 

How to Handle the Rent as a Result of the Lack of Space in Warehouses 

Warehouse rental rates will continue to grow, as demand and consumer confidence continue to rise. With this, they need more space to handle new inventory. Space shortages could provide the necessary fuel needed to propel the digital transformation of warehouses. It may also accelerate things such as space and labor shortages. 

This attempt is not the first time the CPUC has tried to tax consumers. In December, they proposed a tax of up to $700 a year for those using solar panels. That proposal also cut the amount that solar power users were paid for the energy they added back to the grid. The justification for the levy was that solar panel users weren’t paying their fair share of maintenance costs towards the power grid. The public sharply criticized this proposal, causing the bid to be withdrawn. It is now back again with only

This attempt is not the first time the CPUC has tried to tax consumers. In December, they proposed a tax of up to $700 a year for those using solar panels. That proposal also cut the amount that solar power users were paid for the energy they added back to the grid. The justification for the levy was that solar panel users weren’t paying their fair share of maintenance costs towards the power grid. The public sharply criticized this proposal, causing the bid to be withdrawn. It is now back again with only a few changes.

Other Criticisms

California already has some of the highest utility rates in the country. The proposal is being presented to ensure that solar energy is not completely subsidized by non-solar consumers. Proponents of the bill believe the tax will be minimal, due to preexisting incentives and a decrease in costs associated with solar panel systems. Opponents, however, believe this could have negative effects on citizens who wish to improve their home’s energy efficiency through solar power.

Investors in Florida are progressively implementing ESG (Environmental, Social, and Governance) factors as part of their analysis process to identify material risks and urge companies to act conscientiously. A committee of political proponents has filed a potential constitutional amendment (Initiative #22-02) to allow Floridians to enjoy clean and healthy water as its ‘the fundamental right […]

The post Potential

Investors in Florida are progressively implementing ESG (Environmental, Social, and Governance) factors as part of their analysis process to identify material risks and urge companies to act conscientiously. A committee of political proponents has filed a potential constitutional amendment (Initiative #22-02) to allow Floridians to enjoy clean and healthy water as its ‘the fundamental right […]

The post Potential Constitutional Amendment in Florida Would Allow For Clean and Healthy Water appeared first on KE Andrews.

On April 22, the Potter-Randall Appraisal District (PRAD) in Texas mailed appraisal notices, which have increased by 25% on average. This rise in valuation will, likely, lead to higher property taxes for residents. Why Are the Values Increasing? The rise in property values is not exclusive to Amarillo and its surrounding cities. This is a […]

The post Appraisal Property Values Increased

On April 22, the Potter-Randall Appraisal District (PRAD) in Texas mailed appraisal notices, which have increased by 25% on average. This rise in valuation will, likely, lead to higher property taxes for residents. Why Are the Values Increasing? The rise in property values is not exclusive to Amarillo and its surrounding cities. This is a […]

The post Appraisal Property Values Increased in Potter-Randall appeared first on KE Andrews.

Texas’s Lt. Governor, Dan Patrick, and multiple Texas legislators plan to lower the Texas property tax rates by eliminating the ISD maintenance and operations property tax. This change, combined with a decrease in the cap rate, would significantly affect Texas taxes. But will it pass through the state congress or lower taxes? What is the […]

The post Will The Texas ISD M&O Property

Texas’s Lt. Governor, Dan Patrick, and multiple Texas legislators plan to lower the Texas property tax rates by eliminating the ISD maintenance and operations property tax. This change, combined with a decrease in the cap rate, would significantly affect Texas taxes. But will it pass through the state congress or lower taxes? What is the […]

The post Will The Texas ISD M&O Property Tax Rate Be Eliminated appeared first on KE Andrews.

An unnamed Fortune 500 company is currently seeking prospective locations for its new factory build. Oklahoma Governor, Kevin Stitt, signed House Bill 4455 into law this past Monday morning. The Bill grants a tax rebate to incentivize the Fortune 500 company to build a new factory in the state. To further attract this company, Mayes […]

The post TIF District Proposal in Mayes County,

An unnamed Fortune 500 company is currently seeking prospective locations for its new factory build. Oklahoma Governor, Kevin Stitt, signed House Bill 4455 into law this past Monday morning. The Bill grants a tax rebate to incentivize the Fortune 500 company to build a new factory in the state. To further attract this company, Mayes […]

The post TIF District Proposal in Mayes County, Oklahoma appeared first on KE Andrews.

When you hear “Disney”, you think of family fun and dreams of little children who want to become part of Disney World’s magic. However, trouble has been on the horizon, with Disney and the current Florida governor at odds. Recent tensions could greatly impact Florida taxpayers, especially in Orange County and Osceola County. What is […]

The post More

When you hear “Disney”, you think of family fun and dreams of little children who want to become part of Disney World’s magic. However, trouble has been on the horizon, with Disney and the current Florida governor at odds. Recent tensions could greatly impact Florida taxpayers, especially in Orange County and Osceola County. What is […]

The post More Than $1 Billion in Disney Debt, Taxpayers of Florida May Be Footing the Bill appeared first on KE Andrews.

The property owners of Mayfield, Kentucky, are still reeling from the effects of a tornado that struck almost four months ago in December. The catastrophic weather event is believed to have damaged around 1,300 buildings, a significant portion in a community of just 10,000. While citizens have had to rebuild their lives, local government officials […]

The post Kentucky Tornado:

The property owners of Mayfield, Kentucky, are still reeling from the effects of a tornado that struck almost four months ago in December. The catastrophic weather event is believed to have damaged around 1,300 buildings, a significant portion in a community of just 10,000. While citizens have had to rebuild their lives, local government officials […]

The post Kentucky Tornado: What Does This Mean for Property Taxes? appeared first on KE Andrews.

For Texas business owners, April 15 is the deadline for filing tangible personal property renditions. What Is a Rendition and Why Does It Matter? A rendition includes taxable inventory that the property owner is responsible for or has in his or her possession from January 1 of one year to January 1 of the next […]

The post Texas Property Tax Renditions Are Due April 15 appeared

For Texas business owners, April 15 is the deadline for filing tangible personal property renditions. What Is a Rendition and Why Does It Matter? A rendition includes taxable inventory that the property owner is responsible for or has in his or her possession from January 1 of one year to January 1 of the next […]

The post Texas Property Tax Renditions Are Due April 15 appeared first on KE Andrews.

I didn’t pay my property taxes. What happens, next? When a property owner’s taxes become delinquent in Louisiana, a lien is placed on the property. This means your property is now liable for those taxes, which could have serious repercussions. Every state has a law in place allowing local governments to sell your property to […]

The post What Happens If I Don’t

I didn’t pay my property taxes. What happens, next? When a property owner’s taxes become delinquent in Louisiana, a lien is placed on the property. This means your property is now liable for those taxes, which could have serious repercussions. Every state has a law in place allowing local governments to sell your property to […]

The post What Happens If I Don’t Pay Property Taxes in Louisiana? appeared first on KE Andrews.

Arizona’s commercial property tax assessment, Senate Bill 1093, moves one step closer to passing. If it does, the assessment ratio would decrease to 15% over time. The passing of last year’s SB 1108 already calls for an 18% to 16% assessment ratio decreased by 2027. I’m a Business Owner. How Will This Affect Me? Arizona […]

The post Arizona’s

Arizona’s commercial property tax assessment, Senate Bill 1093, moves one step closer to passing. If it does, the assessment ratio would decrease to 15% over time. The passing of last year’s SB 1108 already calls for an 18% to 16% assessment ratio decreased by 2027. I’m a Business Owner. How Will This Affect Me? Arizona […]

The post Arizona’s SB 1093 to Decrease Property Tax Assessment Ratio If Passed appeared first on KE Andrews.

The three largest states in the Union have initiatives that could affect their residents’ property tax bills: 1. New York has plans to give homeowners with incomes up to $250,000 a Property Tax Relief credit on their income tax returns. That would be allowed “if their total property tax exceeds a fixed percentage of their income.” The […]

The post Possible Property

The three largest states in the Union have initiatives that could affect their residents’ property tax bills: 1. New York has plans to give homeowners with incomes up to $250,000 a Property Tax Relief credit on their income tax returns. That would be allowed “if their total property tax exceeds a fixed percentage of their income.” The […]

The post Possible Property Tax Changes for 2022 appeared first on KE Andrews.

With the real estate market contributing to rising property values in the U.S., and changes on the horizon for federal taxes, homeowners may be wondering how much of an impact this will make on their property taxes and budgets in 2022. An increase in property tax liability should be anticipated at some point, but that […]

The post What Factors Could Change Your U.S. Property

With the real estate market contributing to rising property values in the U.S., and changes on the horizon for federal taxes, homeowners may be wondering how much of an impact this will make on their property taxes and budgets in 2022. An increase in property tax liability should be anticipated at some point, but that […]

The post What Factors Could Change Your U.S. Property Tax Bill in 2022? appeared first on KE Andrews.