logo-updated-012918
Property Tax Inquiries Call 713.290.9700

Why was my commercial property tax assessment raised during COVID?

Great question. The property tax assessment is based on the value as of January 1 of the current year. Last year appraisal districts gave no consideration to the impact of COVID since it was not impacting value as of January 1, 2020.

With limited exemptions, commercial properties were lower as of January 1, 2021 (versus 2020):

  • Record or near record levels of COVID infections, deaths and hospitalization as of January 1, 2021.
  • Office occupancy and rental were lower, and occupancy rates are expected to fall further during 2021 as companies reduce space due to hybrid work format,
  • Current and projected retail real estate demand is lower due to the accelerated migration of sales from brick and mortar to online, Apartment occupancy is lower due to tenants buying houses.
  • Apartment collections are lower due to tenants not paying rent. CNBC reports 18% of tenants nationwide are delinquent on apartment rent with an average balance of $5,600.
  • Land values are off due to sharply reduced purchased of land for new construction.

Your final 2021 property tax assessment should be lower than the 2020 assessment. If you missed the May 17th protest deadline, you likely still qualify for property tax relief based on the “substantial error” section of Tax Code (25.25 (d)).

Call us at 713-375-4399 for questions about your 2021 protest or filing a “substantial error” protest.

Blog Author

Patrick O’Connor, MAI, Owner and President
Patrick O’Connor has been active in reducing property taxes, providing expert witness testimony and appraising commercial real estate property since 1983. Pat is active in publishing analyses and data with respect to the real estate market, while being a highly regarded media spokesperson for the real estate community. He holds a MAI, the highest achievable designation from the Appraisal Institute, and is a licensed senior property tax consultant. Pat earned a Master of Business Administration from Harvard University. In 2001, he authored the first definitive consumer guide to Texas property taxes, Cut Your Texas Property Taxes.

Property Tax Protection Program™

No cost to enroll

Recents

The Residential Property Protection Program™
is powered by O’Connor
  • Enter your information below and your documents and enrollment information will be emailed to you within one business day

  • Hidden
  • Hidden
  • Hidden
  • Call 713.290.9700 to discuss with a representative.

    Please monitor your E-mail and spam filter. If you don't receive your enrollment documents within 24 business hours, call 713.290.9700 8am - 5pm CST

  • Hidden
  • Hidden
  • Hidden
  • Hidden
  • Hidden
  • Hidden
  • Hidden
  • Hidden
  • Hidden
  • Hidden
  • Hidden
  • Hidden
  • Hidden
  • Hidden
  • Hidden
  • Hidden
  • This field is for validation purposes and should be left unchanged.

When you submit your enrollment, you understand this is a risk free offer to you. If your taxes are not reduced you PAY NOTHING, and a portion of the tax savings is the only fee you pay when your taxes are reduced.

Property Tax Protection Program™

You pay nothing unless we reduce your property taxes, and then only a portion of the savings. There is no flat fee, no sign up fee and no setup fee. We protest your property taxes aggressively every year, and you only pay if and when we reduce your property taxes.

O’Connor is the largest property tax consulting firm in the U.S. Our licensed tax consultants and administrative support team benefits home and property owners by reducing property tax assessments, filing personal property renditions, reviewing tax statements, protesting over-assessed property values, and attending informal tax hearings and appraisal review board meetings.

 

We work tirelessly to protest and lower your taxes with:

  • Informal hearings
  • Appraisal Review Board (ARB) hearings
  • Coordinating judicial appeals