Spotlight on Advisory Services: Real Property Tax Services

Property taxes are often one of the largest operating expenses for real estate owners, yet they are frequently overlooked as a strategic opportunity to reduce costs and enhance asset value. As market conditions evolve and taxing jurisdictions apply varying assessment methodologies, a proactive approach to property tax management can have a significant impact on an organization's bottom line. From annual assessment reviews and appeals to acquisition, development, and reassessment planning, effective real property tax strategies can help owners improve cash flow, gain greater visibility into future liabilities, and make more informed business decisions.

In this edition of Spotlight on Advisory Services, Smit Shah sits down with Cody Anderson from Citrin Cooperman's Real Property Tax Services team to discuss common challenges facing real estate businesses, explore opportunities for property tax savings, and examine how strategic property tax planning can help owners, developers, and investors navigate an increasingly complex real estate landscape.

Smit: What types of issues do you most commonly address within real estate organizations?

Cody: We often help real estate organizations take a more proactive approach to property tax. Real property taxes are often one of the largest operating expenses for an owner, so we're helping clients identify savings opportunities through annual assessment reviews, identifying appeal opportunities, planning for reassessments, and providing guidance through the tax impact of an acquisition or development.

Smit: Can you share an example of an engagement that had a meaningful impact on a client’s operations or decision making?

Cody: One example that comes to mind is a newly constructed multifamily property where the assessor valued the asset using a cost approach initially. However, inaccuracies in the assessor’s data were discovered that resulted in portions of the project being over assessed. Also, the property was still in a lease up phase, which was not reflected in the cost-based assessment. We caught the issue early during our review process, worked directly with the assessor to validate the property details, and were able to get the value corrected before the tax bill was issued. That saved the client from an excessive tax burden and avoided what could have been a lengthy appeal process, while also giving them greater confidence in their budgeting and projected operating expenses for the year.

Smit: Can you describe some engagements that you have been involved with that are unique to the real estate industry?

Cody: One thing that's unique about owning real estate is that property taxes are local, even when you're managing a national portfolio. Every taxing jurisdiction has its own rules, deadlines, appeal process, and approach to valuation — so it can get complicated quickly. I've worked with clients that own property across multiple states, and a big part of the value we bring is helping to manage all of those moving pieces in a more centralized and strategic way. We review portfolios on a market-by-market basis, identify and prioritize savings opportunities, and coordinate appeals across jurisdictions simultaneously. The result is usually more than just tax savings; it gives real estate teams much better visibility into their property tax liabilities.

Smit: What types of services can we provide to real estate organizations?

Cody: We're a full-service property tax consulting team and can offer any service involving the property tax function of a real estate owner or organization.

We:

• Review and communicate all client-owned assessments on an annual basis.
• Provide insight into each property and identify if tax savings and appeal opportunities are present.
• Provide budgeting/forecasting guidance during the development or acquisition process.
• Manage the appeals process from start to finish.
• Deliver portfolio-level reporting.
• Act as a strategic collaborator for your real estate teams.

Smit: What are the typical use cases in the real estate industry, and what are some of the lesser-known use cases that you have been involved with?

Cody: The typical use cases are straightforward. As mentioned, our mission is to ensure our clients are not paying more property taxes than they should. This normally occurs from the inclusion of non-taxable business value on a real property assessment or simply overstating the market value. Additionally, county assessors are often understaffed and are forced to rely on antiquated mass-appraisal software prone to inaccuracies when deriving assessed values.

Some of the lesser-known use cases are where our jurisdictional knowledge really comes into play. Every state and local jurisdiction has its own laws and property valuation standards. We bring national expertise to the table. We work with clients to proactively plan for reassessments, identifying situations where assessors relied too heavily on mass appraisal models that didn't accurately reflect the property's unique position or its performance. We also help clients navigate acquisitions, new developments, and lease-up situations where getting the value correct early on can have a significant impact on future tax liabilities. In many cases, the value we provide isn't just in filing an appeal — it's understanding how a particular jurisdiction operates, anticipating issues before they become problems, and helping clients make better real estate and financial decisions along the way.

Smit: When should a real estate organization consider bringing in a specialist from your group?

Cody: The best time to bring us in is before property taxes become an issue. We tend to provide the most value when clients are dealing with reassessments, acquisitions, development projects, or own property that is located across multiple jurisdictions. We also get involved when real estate teams are spending too much time managing the entire property tax function. That's where we can step in to provide some strategic guidance and take a lot of that day-to-day workload off their plate so they can focus on running their core business.

Smit: Citrin Cooperman has a strong reputation in state and local tax services. What differentiates your team’s approach when working with real estate clients?

Cody: We offer senior-level attention, a portfolio-wide strategy tailored to each property, and access to a full accounting and advisory platform within the firm. You get a property tax specialist who understands the assets and stays involved. We understand how different jurisdictions operate and use that knowledge to identify opportunities and potential issues that others might miss. We're also very proactive. Whether it's a reassessment, acquisition, or development project, we focus on getting ahead of issues before they become costly problems.

Smit: What are some of the biggest misconceptions real estate clients have about your services?

Cody: One misconception is that we're only brought in for appeals. In reality, we add a lot of value by being proactive in planning. Another one is that it's expensive to have properties reviewed. Most of our appeal work is contingency based, so we only get paid when we generate savings, and for consulting projects we're flexible with hourly or fixed-fee arrangements depending on the scope. While clients often come to us for savings opportunities, they quickly realize the value of our strategic guidance, jurisdictional expertise, and the administrative burden we take off their team.

Smit: Finally, what excites you most about the future of this practice area at Citrin Cooperman?

Cody: What excites me the most is the opportunity to continue assisting with the growth of our clients’ overall business interests. Property taxes are becoming a greater focus for real estate owners as operating expenses continue to increase, bringing challenges to navigating a complex and changing real estate market. There's a growing need for professionals who can combine local jurisdictional knowledge with a broader portfolio tailored perspective that can continually add value to our clients’ interests.

Be sure to follow along over the coming months as our seasoned real estate professionals share insights and perspectives on the full spectrum of real estate advisory services, highlighting strategies, solutions, and opportunities to help organizations navigate an increasingly complex market environment.