Tony Sokol, President of Valu Tec, shares helpful suggestions each month.
June 5, 2017
NEW OR REHAB?
One of Valu Tec’s major clients in the Grand Rapids, MI area recently added on to their corporate office building, and as part of the project they decided to upgrade their 1970’s vintage office space to match their new addition.
The expenditure was going to be more than the value attributed to the building according to the assessment in place. It was decided that we should file two abatements. One NEW for the additional space generated by the expansion (1\2 tax rate) and one REHAB (frozen assessment) for the remodeling of the original office structure.
The resulting tax savings was phenomenal for both abatements. The interesting thing was in the hearing the assessor mentioned in his 25 years of service he had never done a REHAB IFT abatement!
There are many things to consider when deciding if you should apply for a REHAB IFT abatement. For instance, is the value currently assessed the building improvements fair and reasonable? Determining the answer takes a professional analysis. Certain steps need to be taken in a timely fashion (some even before any construction begins) for everything to work out so that you receive the best tax benefit.
When considering a major remodel or rehab of any of your buildings (not just offices!) contact Valu Tec to get expert advice. Otherwise, you may miss out on the opportunity for significant tax savings!