Navigating Real Estate Tax Bill Compliance: The Ultimate Checklist

Maintaining real property data and complying with real estate tax bills can be a complex process for companies. In many cases, bills may not be received from jurisdictions, leading to potential penalties. To help businesses avoid pitfalls and maximize savings, we've compiled "The Ultimate Checklist for Real Estate Tax Bill Compliance."

Section 1: Ensure Timely Payments and Know Critical Dates

1.1 Keep Track of Upcoming Critical Dates

Companies should maintain a regular alert tracker to monitor important deadlines for real estate tax bill payments. Bills from different states/counties have varying release and due dates, demanding close attention to avoid late fees.

1.2 Identify Location and Lease Period

Upon receipt of tax bills, companies must swiftly identify the relevant location and ensure the billing period aligns with the lease period, if the company occupies leased space. Correctly abstracting leases empowers companies to understand obligations passed directly to taxing authorities.

Section 2: Handle Missing Bills and Correspond Proactively with Jurisdictions

2.1 Unreceived Bills and Proactive Communication

Even if a bill is not received, it is still due. Companies need to have a dedicated person or team responsible for reaching out to the issuing jurisdiction to obtain the required information. This may involve requesting an e-copy or confirmation of the amount due.

2.2 Effective Cloud-Based Storage Solution

Organized cloud-based storage for all bills and relevant documents ensures easy access to records, even for multiple locations. A centralized system streamlines the tax bill compliance process and minimizes the chances of misplacing critical documents.

Section 3: Collaboration Between Compliance and Accounting Departments

3.1 Collaborative Efforts for Accurate Accounting

Collaboration between the compliance and accounting departments is vital for seamless accounting of tax bill amounts. Incorporating General Ledger (GL) and Vendor codes ensures accurate financial reporting.

Conclusion:

Real estate tax bill compliance demands meticulous organization and proactive communication with jurisdictions. By following "The Ultimate Checklist for Real Estate Tax Bill Compliance," companies can avoid penalties, maximize savings, and streamline their tax bill management process. With a dedicated person or team for reaching out to jurisdictions and a comprehensive cloud-based solution, businesses can confidently navigate the complexities of real estate tax compliance.