Boasting a rich history, growing population, and strong economy in Bexar County, Texas is a great spot for businesses. There’s an increasing demand for commercial places like stores, offices, and healthcare centers. Owning commercial property in Bexar County, Texas, can be a lucrative investment, but it also comes with the responsibility of managing and paying property taxes.
Property taxes are a significant expense for commercial property owners. In this blog, we will explore effective strategies for managing and minimizing commercial property taxes in Bexar County.
The arrival of businesses in Bexar County often raises property rates due to increased demand for commercial spaces. As new enterprises take root and property values climb, local tax revenue also sees a boost. This occurs when the need for commercial space grows, but the supply stays limited, leading to higher property values and subsequently increased commercial property taxes.
In this article, we’ll understand in detail what economic development is, how it affects commercial property taxation, and what tax relaxations businesses can enjoy.
Understand the Property Tax System
The first step in managing property taxes effectively is to understand how the property tax system works in Bexar County.
Property taxes are assessed based on the appraised value of your property, and the tax rate is determined by various taxing entities, such as the county, city, school district, and special districts. The assessment of property values falls under the jurisdiction of the Bexar Appraisal District, which determines the market value of real estate by considering factors such as its location, size, and any improvements made to it.
Property reassessments are generally conducted annually or whenever significant changes, like renovations, occur. It is best to familiarize yourself with the local tax laws and regulations to ensure you have a clear understanding of how your property’s tax liability is calculated.
The end goal of economic development is to create more jobs for people and improve their lives by giving them access to better facilities.
Challenge Your Property's Appraisal
Property appraisals play a crucial role in determining your property tax bill. It’s essential to review your property’s appraisal annually and ensure it accurately reflects your property’s market value. If you believe the appraisal is too high, you have the right to challenge it through the property tax appeal process.
To streamline the process and bolster your chances of successfully lowering your property’s assessed value, hiring a professional property tax consultant with experience in property tax appeals can be a wise investment.
Take Advantage of Exemptions and Abatements
Bexar County offers various exemptions and abatements that can help reduce your commercial property taxes. Common exemptions include:
- Charitable Organization Exemptions
- Religious Organization Exemptions
- Public Property Exemptions
Additionally, there are incentives and abatements available for certain types of commercial properties, such as those in designated redevelopment areas or historic districts.
You can explore exemptions and abatement options to see if your property qualifies and can benefit from tax savings.
To streamline the process and bolster your chances of successfully lowering your property’s assessed value, hiring a professional property tax consultant with experience in property tax appeals can be a wise investment.
HJR 2 – “Circuit Breaker Program”
During the 88th legislative session, lawmakers put together a law that will go before voters on November, 2023. If passed, all real property under 5 million will have a temporary 20% limit on the maximum appraised value each year.
This is the first time in Texas history that non homestead properties will have some type of appraisal cap on their annual appraisals. This will allow business owners to confidently budget for future tax increases, as well as some reassurance that your bottom-line won’t be eaten up by significant annual property tax increases.
Monitor Tax Policy Changes
Property tax laws and policies can change over time, affecting your tax liability. The Bexar County Commissioners Court has the authority to change tax rates and exemptions, and the Texas Legislature also passes tax laws that can affect Bexar County residents.
By monitoring tax policy changes in property tax laws and policies at the local and state levels, you can stay informed about new opportunities to reduce your property taxes. Additionally, you can stay informed about any potential tax increases and take steps to mitigate their impact on your finances.
Explore Payment Options
Bexar County typically offers several payment options for property taxes, including installment plans and early payment discounts. You can explore these options to find the one that best suits your financial situation.
Paying your property taxes early or in installments can help spread the financial burden and reduce the impact on your cash flow.
Conclusion
Effectively managing and minimizing commercial property taxes in Bexar County requires a combination of knowledge, strategy, and proactive measures. It is imperative to learn about how property taxes work, question property evaluations if they seem too high, use exemptions and tax breaks, improve your property, stay informed about tax rule changes, and explore different payment options.
If you need help, our local tax experts at Alamo Ad Valorem can assist you in dealing with Bexar County’s property tax system.