Why now is the time to audit your multi-state property tax bills

By Carlo L. Batts, MAI, Rittenhouse Appraisals and The Reduxx Group

Municipal revenue pressures and reassessment cycles are creating hidden costs for portfolio owners.

For directors of real estate and corporate portfolio managers who oversee properties across multiple states, 2025 presents a perfect storm of factors that could be inflating property tax obligations.

Federal funding cuts under the One Big Beautiful Bill are forcing municipalities to seek new revenue sources, with property taxes on commercial uses representing the most reliable option. Simultaneously, many jurisdictions are in active reassessment cycles, creating opportunities for overvaluations that can remain for years if they are left unchallenged.

The result? Significant money may be left on the table by portfolio owners managing dozens or hundreds of properties across different states, simply because no one is systematically reviewing the bills.

The Multi-State Challenge

Single-property owners likely scrutinize their annual tax bill, but companies with multi-state portfolios face a different reality. Tax bills arrive from dozens of municipalities, each with different assessment methodologies, appeal deadlines, and valuation standards. A retail chain with 50 locations across five states could be receiving 50 different tax bills, each requiring individual analysis.

Even if a company has excellent financial controls, property taxes are often viewed as a fixed cost, rather than a negotiable expense. The level of complexity increases when a company owns different property types. A portfolio mixing office space, warehouse facilities, and retail locations faces different valuation challenges for each asset class, compounded by varying local market conditions.

Common Overpayment Patterns

We see several patterns where multi-state portfolio owners commonly overpay.

First is outdated assessments. Properties assessed during stronger market conditions may not reflect current values, particularly in markets impacted by the shift to remote work or changing retail patterns.

Second is the variation in methodologies. Assessors in different jurisdictions may use varying approaches to similar properties, creating disparities that favor some locations over others within the same portfolio.

Next is missed appeal deadlines. With each municipality setting its own deadline, some as early as 30 days from notice, busy portfolio managers may simply miss the window to challenge assessments.

Finally is a lack of comparative analysis. Without systematic review, companies miss opportunities to identify properties assessed higher than comparable assets in similar markets.

The Cost of Inaction

For a company with a $100 million, multi-state real estate portfolio, even a 5% reduction in property tax assessments could yield six-figure annual savings. Over multiple years, the cumulative impact becomes substantial. This total represents capital that could be deployed for expansion, improvements, or operational needs.

Taking Action

Portfolio managers face a choice: build internal capacity to systematically review property taxes across jurisdictions, or partner with specialists who have the infrastructure in place.

The scope of work is substantial. Tracking bills and deadlines across multiple states, conducting comparative analysis, understanding local reassessment cycles, and navigating varying regulations. Most corporate real estate teams lack the bandwidth and specialized knowledge to handle this while managing core responsibilities.

With municipal revenue pressures intensifying, now is the time to establish systematic review processes, whether through internal resources or external partnerships. The question isn’t whether savings opportunities exist. It’s whether companies have the right expertise to capture them before deadlines pass.

Carlo L. Batts, MAI is the principal of Rittenhouse Appraisals and The Reduxx Group, both based in Center City Philadelphia.

He holds a B.S. in Urban Planning and Real Estate Urban Land Development from Virginia Commonwealth University and has received his MAI designation from the Appraisal Institute.