Owners of hotels and others in the hospitality industry have been some of the hardest hit by COVID-19. Relief has been few and far between for many.  On the one hand, they might be fighting business interruption claims because of the downturn in their business, and on the other hand, they are paying the same, if not more in property taxes at a time when their occupancy and customer traffic are at an all-time low.

The business climate makes it imperative for hotel owners and commercial property owners to consider a property tax appeal recognizing that the market under COVID-19 has and will continue to be different this coming year.

Economic Obsolescence

While some assessors are beginning to take note of how these dire economic conditions and the attendant economic obsolescence are affecting business owners, that does not mean relief will be fair and uniform for property owners across the board. Not all businesses have faced the same economic challenges.

When the time comes to object to your property taxes, more than financial statements and comparable sales might be needed if the assessor is not convinced that a lower property tax assessment is warranted. In many hotel property tax appeals, the commercial property owner will need to hire an appraiser to assist in the appeal. Ideally, the property owner or its counsel will retain an appraiser that has experience in appraising hotels for the purpose of a property tax appeal.