Paradigm Tax Group is proud to announce the recent acquisition of Sage Tax Group. The collaboration of Arizona’s top market leaders enhances Paradigm’s presence as the Southwest region’s most experienced and credible property tax consulting practice.
The New Jersey General Assembly has approved the Corporate Disinvestment Property Tax Relief Act to avoid property tax hikes following a business's departure. According to The Paramus Post, the approved legislation will help New Jersey municipalities absorb the devastating property tax impact that occurs when a major business leaves the area. The Act in large part stems from the departure of drug maker Roche from the Township of Nutley, a move that cost the Township 1,000 jobs and $9 million in property taxes.
The rise in interest rates over the past several weeks is threatening to halt the four year gains in commercial real estate values. According to The Wall Street Journal, until recently, the low-rate environment had been fueling the rise in property values, even while rents and occupancies generally remained below peak levels amid sluggish growth. The recent higher rates, however, are likely to put negative pressure on prices and demand, even in a recovering economy.
Sears has announced a plan to convert vacant stores into server warehouses, a move that continues the trend of filling empty Big Box retail with non-traditional tenants. According to the CoStar Group, Sears has launched a new business unit, Ubiquity Critical Environments, with the mission of converting some of the more than 330 closed Sears and Kmart stores into facilities for data warehousing, network co-location centers, and business continuity operations.
Paradigm Tax Group is pleased to announce the acquisition of Donald C. Walker & Associates, Inc., a Dallas firm specializing in the administration of property tax appeals. Paradigm’s relationship with Donald C. Walker & Associates dates back to the early 1980’s, when Donald Walker, the founder, introduced Del Kolbe, Director of Paradigm Tax Group, to the property tax consulting industry. Today, Donald C. Walker & Associates is headed by Donald’s son Brett Walker, who is the sole proprietor.
The District of Columbia, when compared to the 50 states, brings in the second-highest per capita tax revenue. According to the Washington Business Journal, the District's business income and commercial property tax rates are comparatively high for the region, yet its household taxes are average for a large city - and the lowest in the Washington area. The D.C. Tax Revision Commission is currently tackling a way to ensure the District's tax structure is competitive and fair for both businesses and residents.
Things just got easier for North Carolina business property owners. The North Carolina Supreme Court recently refused to hear a case that’s been in the courts for over decade—signaling good news for taxpayers. When submitting evidence of internal and external obsolescence, property owners can now expect more equitable treatment in the valuation of their personal property.
The amount of active hotels in the United States is up 11.6% over the same time last year, while the number of hotel rooms under construction is up 22.4% over the same time-frame. According to HotelNewsNow.com, typically this would call for some concern among hoteliers in regards to oversupply, but analysts are optimistic that the large sounding increases do not reflect the small size of the absolute numbers.
The District of Columbia yields close to $1.2 billion in annual revenue through property tax exemptions that are all but out of their control. According to the Washington Business Journal, the federal government alone is responsible for $823 million of that total, with foreign governments accounting for an addition $41 million. These entities are obviously immune from taxation, and always will be.
The latest appraisal by the Davidson County Assessor, which occurs every four years, shows a significant increase in value for Nashville, Tennessee commercial properties. According to Davidson County Assessor, George Rooker, commercial values are still going up pretty rapidly from what they are seeing on some of the sales prices. These reassessments will ultimately lead to higher tax bills later this year.
Temporary employment resulting from the increase in oil exploration and drilling activity has caused a great benefit for many local businesses in Northwest Texas. Hotels and motels across the area have benefited from oilfield-related clientele over the past 12-18 months. According to PressReporter.com, that increase in revenue has resulted in another large increase for hotels and motels in the form of much higher taxable property values being proposed by local Appraisal Districts.
The Michigan Senate has passed Senate Bill 114, legislation that would eliminate the loophole allowing property owners to use occupancy rates in order to avoid paying property taxes. According to the Michigan Chronicle, this bill will ensure property taxes are equal for all office building and commercial park owners and maintain vital funding for public safety and other government services.
With the highest commercial/industrial property taxes in the country, Minnesota businesses pay for 31% of the total state property value. According to the Austin Daily Herald, every year legislators pay hundreds of millions in an attempt to hold down residential property taxes, but fail to do anything to hold local government spending in check or bother to consider the astronomical business property taxes. As a result, the property tax burden in the state is directly on businesses.
When it comes to the hospitality sector, business enterprise valuation (BEV) methodology remains a controversial debate in regards to property valuation. For property tax assessment and taxation purposes, it is especially crucial to identify an accurate calculation of BEV in the hotel industry. However, the reliability of traditional methods is questionable, and new methods may quantify the amount of BEV more adequately.
The Internal Revenue Service is gearing up to take a closer look into the process of firms attempting to convert to real estate investment trusts (REIT). According to the CoStar Group, the IRS has formed a new internal "working group" to study the current legal standards it uses to define "real estate" for purposes of firms qualifying as a REIT under the tax code, and what changes or refinements, if any, should be made to those legal standards.
Tampa, Florida has been able to cut its likely budget deficit in 2014 by over a third through the raising of property values. According to The Tampa Tribune, earlier this year, city officials had expected next year's revenues to fall short of expenses by $19.2 million, but through a boost in property values, that number now sits at approximately $11.9 million. The city will still fall short of a balanced budget and plans to make up the difference through internal cuts.
Commercial real estate is steadily making strides as demand continues to rise, vacancies shrink, developers gain confidence, and lenders approve deals. However, according to Investors.com, experts say there needs to be greater progress in a few key areas, including more loans to small businesses, before commercial real estate moves into full recovery mode. Recent activity shows that progress is being made, but at a significantly slow pace.
The Iowa House has officially approved a compromise plan, recently passed by the Senate, to cut commercial property taxes. Governor Terry Branstad will sign the legislation designed to reduce commercial property taxes into law on June 12th in Hiawatha.
Newly developed apartment units keep getting smaller and smaller, much to the delight of tenants, particularly those in large cities. According to GlobeSt.com, renters of varying demographics are seeking space that many would call closet-like, as small as 100 square feet. Customers are increasingly demanding this space in urban markets near amenities and transportation.
The U.S. Census Bureau has reported gains in nonresidential construction during April, a glimpse of recovery in the industry. However, according to the Dayton Business Journal, the level of improvement was not as robust as some would have liked to see, and the implication remains that nonresidential construction will continue to recover, but only gradually.
Thirty years ago, Ohio created enterprise zones in order to help distressed areas attract investors by offering property tax exemptions. While they were designed to only last 10 years, political influence has allowed them to endure, though the use of the program has dropped and many doubt whether they accomplished their goal. According to The Columbus Dispatch, critics have long said that the enterprise zone program has been used too often to poach businesses from one community to another, and some progressive groups have argued that much of the job creation would have happened even without the hefty tax breaks.