top of page
  • Writer's pictureMonica Davis

Ultimate Guide to Commercial Property Loans

Updated: Dec 7, 2022

For business owners or those who own or rent commercial property, paying your property taxes is not only a legal requirement but a smart thing to keep up on, as it will save you from difficult issues and liabilities in the future. Not paying your commercial property taxes on time leads to fees, wasted money, legal issues, and can even lead to more serious issues like foreclosure, liens on the property, or legal liability that can seriously affect your future and ability to earn income.

Don’t let it get to this point, as there are many services and options available for those who are struggling with commercial property taxes to prevent any of these issues from occurring. One of the best ways to deal with this is to take out a commercial property tax loan, which can see you through until you can take care of your financial issues.

Commercial Property Tax Basics

One of the reasons you may find yourself struggling with a commercial property tax payment is that they are calculated differently than residential property taxes, and usually come out to be higher. That’s because they are calculated based on the assessed value of the real estate and commercial properties generate income, so they are usually valued higher.

If you’re renting a commercial property, the owner may have you deposit monthly property tax payments into an escrow or accrual account, or they may require proof that the bill has been paid. Either way, it’s not something that can be avoided, and pushing it off until it is overdue can lead to expensive fines that dramatically raise the cost of your taxes.

There are a few different types of commercial property loans:

Federal Taxes

Federal commercial property taxes are calculated based on your net income produced, not the gross income. That means they calculate it based on your income after all expenses are paid like salaries, operating costs, and benefits.

State and Local Taxes

Your state or local jurisdiction will also collect property taxes, which are usually calculated in the same way as federal property taxes are, based on net income.

Rental or Sales Taxes

In addition to these, the government will usually collect commercial property taxes based on the rent the tenant is paying to the owner and the amount of sales. Unlike the other taxes, these are usually calculated using gross income, not net.

Commercial property taxes can seem complicated, but they’re an unavoidable and necessary part of life for a business owner or someone who rents commercial property space. There’s one key trick to lowering these taxes, which is to always report every possible expense you can. This will help prevent the government from overvaluing the property, which will raise your taxes.

Examples of business expenses that should always be reported are:

  • Management or agency fees

  • Legal fees

  • Payroll and any payroll taxes

  • Insurance

  • Utilities

  • Repairs or maintenance

  • Advertising

  • Supplies (cleaning, decorating)

Keeping track of these expenses will help you keep your property taxes manageable. However, sometimes even when doing so, you can find yourself unable to pay your property taxes. Rather than simply neglecting it until you face serious consequences, reach out for help first.

How You Can Get Help With Commercial Property Taxes

The best way to quickly and easily pay off your property taxes is to take out a commercial property tax loan. This will buy you some time to get your finances in order and figure out how to lower or pay the taxes.

These loans are convenient, easy, and usually have low interest rates. If you’re struggling with property taxes, you can be approved in as little as 24 hours, so there’s no reason not to look into it. Not paying your commercial property taxes can have serious consequences, causing you to lose money, waste time, and face liabilities that can cause you to lose your income and business.

Owners and renters of commercial property have suffered huge losses in the last several years, due to the unprecedented societal shifts caused by the Covid pandemic. Fewer shoppers and staff, reduced hours, decreased store capacity, and increased online shopping have all contributed to a “clouded outlook” for commercial real estate. Brick and mortar stores have a difficult road ahead, and paying commercial property taxes in the face of major challenges like this can be an unbearable burden for some.

Luckily, there is help available to store and business owners, or anyone else who is responsible for paying property taxes. Getting yourself up to date is the most important aspect, that way you won’t have to worry about the problem getting worse, accruing more liabilities and debt, or even losing your property for good.

Property tax loans are designed to help, and there’s a way to make it work for you. Contact a property tax loan service today and get the process started, then you can begin moving forward, addressing other issues, and getting back to running a profitable business.

47 views0 comments


bottom of page