Janus is known for three things:



1. as god of gates and doors, he symbolizes

all beginnings;

2. he is the god for whom the month of January is named; and

3. he is represented by two opposite faces.

So, why, you may ask, did I decide to anoint Janus the god of property taxation? Well, for the selfsame three reasons alluded to above.

First, the beginning of the year, January, is the essential time to do your property tax planning for the year. Yes, Virginia, there is such a thing as property tax planning. It may not be as elaborate or involved as federal income tax planning, but the pay-offs for small investments of time can be exponentially greater.

Next, the two-faced god is a viable symbol for your advocacy in pursuing property tax reduction appeals. More about this below.

January is property tax planning month

For nearly all states, the official tax assessment date is either January 1 or December 31. This means two things. First, the value and therefore the condition "of all property for tax assessment purposes hinges on its status as of the assessment date. The same is true for both valuation and exemption issues. Three examples will help to illustrate this point.

Condition on the assessment date governs for the entire year

First, let's say a factory burns to the ground December 30. As of a January 1 assessment date, no value whatsoever may be placed on the building by the tax assessor. If the same catastrophe occurs January 2, full value may be assessed against the building for the entire year, even though the owner had use of the property for only the first two days of the year! Property tax statutes are complicated and difficult enough to apply even under ideal conditions, and as a result the courts have enforced bright line rules such as these in order to assist tax assessors in administering the tax assessment statutes.

Now, before I proceed, let me make it perfectly clear that the example above is NOT intended as property tax planning advice to Joey the Torch! Instead, it means that if you have repairs and enhancements to make to your residence or commercial property, if these are not completed" or at least not substantially completed" by the assessment date, it is likely that the tax assessor will not be able to tax them until the following tax year, thereby providing you a free year's use without taxation. This is what is meant by "tax avoidance" planning measures intended to minimize tax burdens. It is distinguished from "tax evasion "the use of unlawful measures--which we neither approve of nor advocate.

Avoiding first year of taxation on new or rehabbed improvements

Second, and as a corollary to the fiery example discussed above, if new construction or rehabilitation is about to be completed toward the end of the calendar year, you may want to delay obtaining a certificate of occupancy or connecting electricity or plumbing until after the assessment date again with the purpose of avoiding taxation till the following year. Be sure to check with your property tax adviser in advance on this issue, since regulations differ from state to state to say nothing of enforcement varying from jurisdiction to jurisdiction.

Qualifying for exemptions residential and institutional

Third, exemption and special classification issues are decided based on facts in place as of the assessment date. So, if your state requires qualifying ownership and use as of January 1 to be eligible for exemption, make sure title is transfered to your new home, or to your charitable organization's new facility no later than December 31, and that the actual use required for exemption is established and capable of being demonstrated (through photographs or otherwise) on or before the assessment date. The same holds true for special classifications, such as greenbelt or agricultural classifications. Again, consult with a property tax professional regarding requirements in your jurisdiction.

Filing deadlines don't forfeit a valuable tax benefit!

All tax benefits have annual deadlines. Check with your tax assessor and find out what they are. If you miss the filing deadline, the consequence may very well be that you forfeit the benefit for a year or more! And remember, filing means received by the appropriate official. Merely placing the document in the mail is not the legal equivalent of receipt; the papers actually have to arrive at their ultimate destination. Do not underestimate the value of hand delivery and obtaining a date-stamped copy for your records. These pointers apply to institutional and agricultural exemption filings, tangible personal property (furniture, fixtures and equipment) tax returns, tax reduction appeal petitions, and any other communication or filing with the taxing authorities.

Put your best face forward in your property tax reduction appeal

While you must always be truthful with the tax assessor and other taxing authorities, there is no shame in marshaling just those facts which favor your side of the appeal; at the hearing, the tax assessor may certainly not disclose all the facts which pertain to your property, but only those which support his or her assessment. You would do well to emulate this example. Hence, the notion of turning forward the face which helps your claim to reduced valuation.

Conclusion

Well, there you have it. Now you know why I chose the god Janus as the god of property taxation. So, as you make your new year's resolutions each year, remember to add to the list those property tax reduction planning measures which will put money in your pocket and enable you to take advantage of all the property tax benefits the government has to offer.

Finally, it cannot be repeated too often that each state has its own regulations. Contact a property tax consultant in your area to discuss the regulations which apply and how best to take advantage of the benefits afforded by your state constitution and statutes.