What is the impact of property taxes on my business?

Property taxes can have a significant impact on businesses in California. Property taxes are levied by local governments and are based on the assessed value of the business’s real property and any other tangible property (equipment, furnishings, vehicles, etc). Businesses must pay property taxes on an annual basis and the amount depends on their assessed value. In California, businesses can receive some relief through Proposition 13, which limits the annual increase of any property’s assessed value to no more than two percent. However, businesses can still expect to pay property taxes that are equal to 1.25 percent of the assessed value of their property. Additionally, businesses may face additional taxes such as special assessments for schools or public improvements. These special assessments can make up a significant portion of the total property tax bill. To limit these additional taxes, businesses should stay informed of local plans and developments. Finally, it is important to remember that businesses can appeal the assessed value of their property if they do not believe it is fair. If successful, businesses can save money by reducing their property tax burden. In summary, property taxes can have a large impact on businesses in California, and it is important for business owners to understand the tax laws and their options for appealing assessed values.

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