The COVID-19 pandemic has disrupted the US economy, business operations, and state and local government finances. While much of the immediate compliance focus has been on state income and sales taxes, the greatest disruption to local government finances may be in the area of property taxes. Taxpayers should consider the impact on their real and other tangible property values and take steps to seek applicable relief.
As property tax is an above-the-line expense, managing property tax burdens has a direct relation to a business’ cash flow. COVID-19 and its impact on businesses has heightened the importance of advance property tax planning, before the various annual deadlines for reporting and protest. Although it is an uncertain issue, relief potentially may be available to address declines in value mid-year if “disaster” relief provisions in certain state laws are deemed applicable.