by Ken Zdrok, Esq.January 23, 2025

Client Snapshot

Logo
  • Building Type

    Multi-family

  • Location

    Louisville, KY

  • Project

    Property Tax Appeal

  • Project Objective

    Property Tax Assessment Value Reduction

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Approach & Results

Client Profile
A CPA firm engaged McGuire Sponsel to conduct a property tax appeal for a real estate development company based in Louisville, KY. The client has a diverse portfolio, including multi-family, industrial, and office properties. The client felt their property taxes were too high, particularly for a recently constructed apartment building in Jefferson County.

Process
Our property tax team initiated a comprehensive review of the client’s portfolio, focusing on a newly built multi-family property still in the “lease-up” stage. We discovered that the assessor’s office was valuing the property as if it were fully leased and generating significant income, which did not reflect the current reality.

Our approach involved gathering and presenting evidence of the property’s actual occupancy and income levels. We demonstrated that the property was not generating the income assumed in the assessor’s valuation due to ongoing vacancies.

The process faced challenges when the assessor’s office denied our initial appeal at the informal level. Undeterred, we escalated the appeal to the Board of Equalization. Despite technical difficulties with the county’s online systems, necessitating paper submissions, our team persevered, maintaining consistent communication with the office to ensure all information was properly filed and considered.

Project Results
The Board of Equalization ruled in our favor, significantly reducing the property’s assessed value. The valuation decreased from $27,223,770 to $18,625,000, yielding a substantial tax savings of $113,000 for the current year.

  • $8,598,770

    Reduction in Assessed Value

  • $113,000

    Annual Tax Savings