Property taxes are an ad valorem tax whose amount is based on the assessment value of a property. This is a progressive taxation system, the higher this assessment the higher the amount of taxes levied by the local municipality, the rationale being that the more valuable piece of property should have a larger tax bill for municipal services than a less valuable property.
Property taxes are determined from two elements. The first is the property tax assessment – a value issued by the Municipal Property Assessment Corporation (MPAC). The second is the tax classification, which determines the tax rate, or mill rate, used by the Municipality in which the property is located. The simple equation to calculate property taxes payable per year is:
$1,000,000 (Property Assessment) x 3% (Tax Rate) = $30,000 (Original Taxes Payable)
Once Navitax successfully reduces or changes the assessment through the appeal process, the taxes payable by the Client to the Municipality will be decreased and tax savings will be achieved. The tax savings are the difference between the original taxes payable and the revised taxes payable.
Again, clients retain our comprehensive services on a contingency fee basis; we handle the entire process while not costing them any out of pocket expenses. We are paid a percentage of the property tax savings we are able to achieve on their property tax bills. So do not wait for a deadline to pass by, without finding out if there is an opportunity to recover some property tax savings! Fill out our form and have us contact you with the steps to get started!