Another CBM Original…

Death and Taxes…

The only two absolutes in life, right?

At least with death (though it may come too soon) that’s where the train ends. But taxes just keep coming. A relentless and unwavering demand.

The Taxman Cometh

As a shopping center landlord, keeping on top your property taxes is important. If you’re late or fall behind, someone always comes looking. And that someone, usually the county assessor, will collect not only what you owe, they’ll also levy penalties in addition

Even worse, if they don’t get the tax money owed, they record a lien against your property’s title. And with a tax lien in place, which makes your property virtually impossible to sell.

Important Tax Bill Due Dates

To avoid penalties, it’s imperative you’re aware of your property’s bi-annual property tax bill due dates

First Installment

Due: November 1st

Delinquent: December 10th (must be postmarked by this date)

Second Installment

Due: February 1st

Delinquent: April 10th (must be postmarked by this date)

These payments must be in the mail and postmarked prior to or, at the latest, on the day of the February 10th or April 10th property tax deadlines.

Penalties for Delinquent Tax

If your tax bill is delinquent, you’re assessed a %10 penalty. That means if your tax bills is $10,000, you owe an addition $1,000 on top. This brings your grand total to $11,000.

How Property Management Can Help You with Your Property Tax Bills

One of the value added services professional property management provides is tax bill oversight and payment.

Your property manager will…

  • Repeatedly remind you your tax bill is due.
  • Coordinate with you to ensure there are adequate funds available in your property trust account to cover your property tax bill.
  • Make sure your tax bill is paid prior to the deadline – either by mail (postmarked on or prior to the February 10th or April 10th deadlines) or online through payment portals many counties now offer.

Tax Bill Records (Maintaining a Paper Trail)

In additional to handling property tax bill oversight and payments, you manager maintains records of your property past tax bills and their corresponding payments. And these payments are reflected both in your monthly financial statements and the accompanying narrative reports.

Thus should your tax bill payment ever come in to question – you will have significant documentation demonstrating your bill was paid in full and on time.

Are Your Property Taxes (And Other Bills) in Order?

Struggle to keep up with property taxes, bills and other accounting issues that accompany managing your shopping center?

Click here to check out CBM’s services page and find out how professional property management can not only ease your burden, but save you time and money!