Complex properties lead to complex assessments. Through decades of practice, Faegre Baker Daniels attorneys understand the likely pitfalls in the process of assessing and appealing property taxes, and we help our clients avoid them. Our clients include large manufacturing and industrial companies, financial institutions, agricultural firms, and utilities, as well as national real estate developers and real estate investment trusts. Whether the property is held for investment or designed and built for a special purpose, our tax professionals have experience in minimizing the tax burden of major property owners.
Our property tax practice includes both preventative and remedial actions for our clients. We work with developers to estimate taxes for proposed projects and work to minimize the property tax impact of mergers, acquisitions and dispositions. We analyze existing real estate assessments and have extensive relationships with local assessors that allow us to successfully negotiate without the need for litigation. When the need arises, though, we have litigated real estate tax disputes before local assessing boards and various state tax courts, courts of appeals and supreme courts. We have successfully litigated dozens of cases, including:
- A ruling that a newly constructed, big-box retailer was entitled to an immediate obsolescence adjustment for a loss in value due to the oversupply of and limited market for such properties.
- A ruling for a heavy manufacturer enumerating the appropriate methodology to be used to prove a property's functional obsolescence.
- A ruling that the owner of a multifamily housing complex was entitled to an obsolescence adjustment because restrictions by the U.S. Department of Housing and Urban Development limited the property's income-producing ability.
- A ruling that the contract rent in a sale-leaseback transaction reflected more than just real property, and thus the assessor was required to adjust the income approach calculation to remove all value created by personal and intangible property.
In addition, our team of property tax professionals includes three certified assessor-appraisers, whose experience working for local assessors and state agencies provides specialized knowledge essential in real estate assessment matters. Their combined 50 years of experience includes review and analysis of complex properties, including casinos, steel mills, power generating plants, office buildings, regional retail malls and multifamily housing.
When a client seeks an integrated solution to property tax issues, we collaborate with our colleagues in the Equity Property Tax Group of Faegre Baker Daniels Consulting. We also provide national real estate tax management in conjunction with our affiliation with the American Property Tax Counsel, a network of leading independent property tax law firms throughout the United States and Canada. Our membership in APTC allows our clients to capitalize on the local relationships and knowledge of other APTC member firms.