The Challenge
The Philadelphia Office of Property Assessment valued the client’s property at $3.3 million, resulting in annual real estate taxes totaling approximately $46,200.
Because the client also operated her business at the property, the assessment additionally affected the property’s use and occupancy tax obligations, substantially increasing the total tax burden placed on the business.
The client sought to challenge the assessment and reduce the financial impact of the property taxes while preserving the long-term viability of the family-owned business.
The Solution
Nochumson P.C. initially filed a first-level review challenging the assessment with the Office of Property Assessment.
After the initial challenge was denied, the firm escalated the matter to the Board of Revision of Taxes while simultaneously negotiating directly with the Office of Property Assessment regarding the property valuation.
Through those efforts, Nochumson P.C. successfully secured a reduction of the assessed value from $3.3 million to $2.2 million.
The firm also negotiated an agreement freezing the reduced assessment value for the following tax year, extending the tax savings beyond the initial appeal period.
Because the property was subject to use and occupancy taxes, the reduced assessment also significantly lowered the client’s additional tax obligations tied to operation of the business at the property.
Commercial property assessments can impact not only annual real estate taxes, but also additional tax obligations tied to business operations and property occupancy.
The Results
The reduction in assessed value lowered the client’s annual real estate taxes by approximately $15,400 per year.
The revised assessment also reduced the client’s use and occupancy taxes, generating additional savings exceeding $26,000 over the relevant tax years.
In total, Nochumson P.C. helped the client save nearly $55,000 in combined taxes while preserving financial stability for the long-standing Philadelphia business.
