A formal challenge to a property's assessed value filed with the local tax authority, seeking to reduce the assessed value and consequently lower the property tax bill. Successful tax protests benefit tenants by reducing the tax component of their CAM charges.
Tax protests (also called tax appeals or assessment challenges) are filed with the county assessor or a board of equalization within a jurisdiction-specific deadline, typically 30-90 days after the assessment notice. The property owner must demonstrate that the assessed value exceeds fair market value, using comparable sales, income approach, or cost approach evidence. Protest costs (attorney fees, appraisal fees) are often passed through to tenants as an operating expense, though some leases limit this to situations where the protest succeeds.
A landlord files a tax protest, wins a $200,000 tax reduction, but does not credit tenants their proportionate share of the savings. Meanwhile, the landlord passes through the protest attorney fees and appraisal costs as operating expenses, charging tenants for the effort while keeping the benefit.
Check whether your landlord files tax protests regularly. If they do, verify you receive credit for any reductions. If they do not, your lease may give you the right to protest on the landlord's behalf or require the landlord to protest when the assessment exceeds a threshold.
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Find My OverchargesThis page provides general educational information. It is not legal advice and may not reflect the most current law in your state. Consult a licensed attorney for advice specific to your situation.
