Archive for category: General Information

Property Tax Appeals for Jackson County are Due July 14th!

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Property Tax Appeals for Jackson County are Due July 14th!By Donald Swartz, President

I was sitting at brunch the other day discussing the Jackson County reassessment with friends familiar with commercial real estate and the concept of Ad-Valorem property taxes. The term “ad valorem” is defined as “according to value”. The State of Missouri is charged with assessing properties every other year at Market Value or “according to value”.

So, what happens when properties have been historically undervalued?

If an owner of commercial real estate has a multi-tenant property and net leases in place such that property taxes are passed through to the tenant, what happens to the tenants when property taxes are increased 5X or 10X from the previous reassessment? Certainly, very few businesses, if any, budget for this type of increase in their operating expenses.

This is taking place in 2025, particularly in Jackson County. We represent several property owners and/or tenants where the property has been undervalued for several years. Tenants sign leases and review historical information related to property taxes and insurance. There is an understanding these expenses could, and will, increase over the length of the lease. However, if the property tax valuations have remained static over the past 6-7 years, can a taxpayer reasonably budget for a five or ten-fold increase in property taxes in a single year?

Paying a Fair Share

Taxpayers reach out to us to review the situation and assist in making sure they are paying their fair share –  no more/no less. Here lies the conundrum… We review the income and the net operating expenses associated with the property; review comparable sales of similar properties over the past 2-3 years and develop an opinion of value. We review leases currently in place to determine if they are at market; look at deferred maintenance items and other deficiencies in the property which may affect the valuation of a property.

Now, assume our analysis supports the current value of the property assigned by the county assessor’s office but the property is not equitably assessed to similarly surrounding properties. Do we appeal the valuation? Do we tell the taxpayer we cannot appeal the valuation increase from $60,000 to $580,000 because it is fair? What about a property that increases from $1,500,000 to $5M+?

It is a slippery slope – counties in Missouri can only increase valuations every odd year (unless there have been improvements or changes made to the property in an even year) so they are constantly lagging behind the market in strong economic times. But increasing valuations 500% or 1000%???

To quote the famous line from the 1984 classic movie, Ghostbusters, “Who Ya Gonna Call?” Well, call us (or email us, or text us 😊) and we’ll see what we can do for you! The deadline is Monday, July 14th.  You can contact me directly at (913) 766-8761 or .

Swartz + Associates, Inc. (SAI) is a full service property tax firm specializing in the review, analysis and appeals of real and business personal property tax valuations. If you need help with your property taxes, give us a call!

Crossing Bridges: A Reflection on Travel, Life, and Taking Leaps

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By Keith Sherman, Business Development at Swartz and Associates

Recently my wife Melanie and I were in Europe for a magical trip. I am so grateful for the beauty of the places we visited, the food and libations we enjoyed, the walking and talking we did together. History surrounded us and seeing other cultures felt like stepping into a timeless moment. It felt this way because I was completely in the moment – for the first time in 38 years I turned off my phone. No emails, no notifications, no distractions. My phone became my camera, capturing the moments we were experiencing.

Crossing Bridges: A Reflection on Travel, Life, and Taking Leaps Crossing Bridges: A Reflection on Travel, Life, and Taking Leaps Crossing Bridges: A Reflection on Travel, Life, and Taking Leaps

We Will Cross That Bridge

This got me thinking of the age-old proverb of Henry Wadsworth Longfellow: We will cross that bridge when we get to it. Throughout my career I often took on high risk opportunities professionally in the marketing and advertising business. We moved a lot for all kinds of reasons – family, title, money, learning, status, impact, mergers, loss of job, and the list goes on. With each transition, I spent a lot of time worrying: Will people do what they say they are going to do? What is going to happen? What action is required? Was this the right decision?

During our stay in Amsterdam, surrounded by canals, that phrase gained new meaning. Whether we walked to a planned destination or just wandered around, we crossed those bridges as we came to them. Life operates in the same way. Some days we set out with a plan and other days we wander without direction – but we cross many bridges along the way.

Take that step onto the bridge. Embrace the moments as they come. It isn’t that you are reckless in your decision making… You are facing your doubts head on and taking a leap that you believe in.

Crossing Bridges: A Reflection on Travel, Life, and Taking Leaps Crossing Bridges: A Reflection on Travel, Life, and Taking Leaps Crossing Bridges: A Reflection on Travel, Life, and Taking Leaps

Swartz + Associates, Inc. (SAI) is a full service property tax firm specializing in the review, analysis and appeals of real and business personal property tax valuations. If you need help with your property taxes, give us a call!

How Fee Simple vs. Leased Fee Values Affect Your Property Taxes: A Guide for Commercial Property Owners

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How Fee Simple vs. Leased Fee Values Affect Your Property TaxesBy Eric Owens, Director at Swartz and Associates

Introduction: Why Property Valuation Matters

If you own commercial real estate, understanding how your property is valued for tax purposes can mean the difference between fair taxation and excessive tax liabilities. Many property owners unknowingly pay more than necessary simply because assessors misinterpret the true market value of their assets.

Two key concepts—fee simple value and leased fee value—play a major role in determining your property tax assessment. We will walk you through their definitions, differences, and implications, helping you make informed decisions when reviewing your tax bill.

Understanding Fee Simple Value

A fee simple estate represents full ownership of a property without considering lease agreements. When assessors determine your tax assessment using fee simple valuation, they look at:

  • Market rent potential rather than actual rental income.
  • Comparable sales of similar properties that are not encumbered by leases.
  • Physical condition, location, and zoning regulations affecting value.

Fee simple valuation assumes that the property could be leased or sold without existing tenant agreements, meaning it reflects what the property is worth in a hypothetical market scenario.

Understanding Leased Fee Value

A leased fee estate accounts for the property’s value with active tenant leases in place. When valuing leased fee estates, assessors consider:

  • Contract rents—the income a landlord receives from tenants.
  • Lease duration—long-term leases may affect property liquidity.
  • Tenant creditworthiness—strong tenants can make a leased fee property more valuable.

This type of valuation differs from fee simple because it reflects actual rental income, which may be higher or lower than market rent. If contract rents exceed typical market rates, the leased fee value may be inflated, leading to higher property taxes.

How Assessors Apply These Valuation Methods

In property tax assessments, local taxing authorities should use fee simple valuation, meaning they must assess your property based on market conditions rather than lease agreements. However, many assessors incorrectly use leased fee valuation, leading to artificially high assessments.

For example:

  • A property leased at above-market rent should be taxed at its lower fee simple value, but assessors may apply leased fee valuation instead, increasing the taxable value.
  • A vacant property should not be valued as if it’s producing income, but some assessors assume rental potential, creating inflated tax assessments.

Understanding these distinctions is critical when reviewing tax assessments and filing appeals.

Common Tax Assessment Issues & Solutions

Many property owners unknowingly pay inflated taxes due to valuation errors. Here are common scenarios where you might be overtaxed—and how our firm can help:

  • Overassessed Properties: If your tax assessment is based on leased fee valuation with inflated rents, a we can challenge the assessment by demonstrating the lower fee simple value.
  • Vacant or Underperforming Properties: If your property is taxed based on potential rental income, rather than actual market conditions, an appeal may be necessary.
  • Lease Expirations & Market Shifts: Long-term lease agreements can distort taxable value. As a tax consultant, we can recalibrate assessments to reflect current market conditions, ensuring fair taxation.

How Swartz & Associates Helps You Save

As a property tax consultant we help clients reduce tax burdens and challenge incorrect assessments. With data-driven analysis, valuation expertise, and strategic advocacy, we ensure that your tax bill accurately reflects market value—nothing more, nothing less.

Key services include:

  • Assessment Reviews – Identifying overvaluation errors that increase taxes.
  • Property Tax Appeals – Fighting excessive tax assessments on your behalf.
  • Market-Based Valuation Support – Ensuring assessments reflect real property value.

Take Control of Your Property Taxes Today

Many property owners don’t realize they’re paying more than necessary—until it’s too late. If your commercial property tax bill seems too high, understanding the difference between fee simple and leased fee valuation is the first step toward fair taxation.

If you suspect your property has been over assessed, we can help you review, challenge, and reduce your tax obligations. Please give us a call.

Are Office Properties Over-Valued by County Assessors?

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Are Office Properties Over-Valued by County Assessors?By Eric Owens, Director at Swartz and Associates

The decrease in demand for office space since the pandemic has significantly shifted the real estate landscape. Remote work and hybrid models have led to reduced office attendance, with some cities experiencing office vacancy rates increasing by as much as 13%. This decline in demand has directly impacted valuations, with the total value of office space expected to drop by an average of 26% between 2019 and 2030.

Why Are Office Spaces Overvalued?

County Assessors often rely on historical data and standardized valuation methods that may not fully account for the dramatic shifts in office space demand post-pandemic. Many offices remain overvalued because these assessments don’t immediately reflect changes in market conditions, such as increased vacancy rates or reduced rental income potential. Additionally, the lag in updating property valuations creates discrepancies between assessed values and actual market values.

This overvaluation has significant consequences, including:

  • Higher Property Taxes: Property owners face inflated tax liabilities despite reduced property income.
  • Challenges in Leasing or Selling: Misaligned valuations deter potential tenants or buyers.
  • Distorted Government Revenues: Inflated values can create unrealistic fiscal expectations for local governments.

Case Study: Wells Fargo’s Office Property

An example of companies rightsizing their office footprints includes Wells Fargo, which sold a large office property in West Des Moines. Built in 2000, this 425,000-square-foot property located at 7001 Westown Parkway, West Des Moines, IA, was sold to WB Realty for $16,500,000 ($38/SF) in December 2023. At the time, the County valued the property at $73,239,480 ($172/SF), with a property tax liability of $2,298,800.

This overvaluation highlights the disparity:

  • Assessed Value: $73,239,480
  • Sold Value: $16,500,000
  • Overvaluation Amount: $56,739,480
    Applying an effective property tax rate of 3.142%, this overvaluation led to an excess property tax liability of $1,782,754—a striking example of the broader issue plaguing office properties.

 What Can Office Property Owners Do?

For property owners navigating overvalued office spaces, engaging a local property tax advisor can be invaluable. They can assist with:

  1. Reviewing assessments and comparing them with current market conditions.
  2. Gathering evidence, such as occupancy rates and comparable sales data.
  3. Filing an appeal with the County and negotiating a revised valuation.

The pandemic has reshaped the office space landscape, and property owners are now grappling with the fallout of outdated valuations. As market conditions evolve, it is crucial for County Assessors to modernize their valuation practices and for property owners to advocate for fair assessments. Addressing these discrepancies will ensure valuations reflect reality, benefiting property owners and local governments alike.

Swartz + Associates, Inc. (SAI) is a full service property tax firm specializing in the review, analysis and appeals of real and business personal property tax valuations. If you need help with your property taxes, give us a call!

A New Spin on Fall Harvest and What is Raffia?

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A New Spin on Fall Harvest and What is Raffia?By David Swartz, Business Development at Swartz and Associates

Iowans with any connection to a farm know the value of family gathering to help finish the fall harvest. My wife and I honor this family tradition with a modern twist. We help our floral designer-owner daughter, Sarah at her Bend, OR shop during Valentines and Mother’s Day – her biggest weeks of the year.

My roles are simple – taking phone orders, occasional deliveries, and cleaning buckets. My wife preps greens for arrangements and makes Grab-n-Go arrangements.

This last Mother’s Day tested Sarah’s personal mantra to seek Tolerance for Adversity and Uncertainty. She faced staffing adversity, uncertainties on tariff effects on pricing and customer demand. Fortunately, the shop experienced a record week – confirming the value of tolerance in the face of many challenges and calmly moving forward according to careful planning.

I even learned that raffia is a floristy, fancy type of ribbon, used for those Grab-n-Go arrangements which I was charged to cut. It’s timely to note that Swartz+Associates put a big ribbon on completing all of our April 30th property tax appeal deadlines as result of a high level of new engagements. Thank you for your continued confidence in us and we will soon report on our successes!

Finally, a creatively designed flower arrangement from a local flower shop makes a loving gift for anyone, and if you ever need flowers in Bend, OR then Wild Flowers is the flower shop to call!

 A New Spin on Fall Harvest and What is Raffia?

Swartz + Associates, Inc. (SAI) is a full service property tax firm specializing in the review, analysis and appeals of real and business personal property tax valuations. If you need help with your property taxes, give us a call!

Johnson County, KS – 2025 Property Tax Valuations

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Johnson County, KS – 2025 Property Tax ValuationsBy Donald Swartz, President

If you look at the stories we typically tell, we’re trying to educate people about the work that we do… property tax valuations. We also try to share a glimpse into the lives of the team that we’ve built to support you. And sometimes it’s important to give you a deeper dive into the complexities of how property tax valuation works in various locations. In this story, I wanted to share how things work in Johnson County for 2025.

Johnson County, KS recently mailed out the 2025 decisions for those taxpayers who filed an appeal on their valuations. There are several considerations a taxpayer should be aware of in the review of the property tax valuations which are unique to Kansas and not available in other states.

Residential appeals

If a taxpayer filed an appeal and received a decision that warrants a further appeal, there are two options available.

  1. Filing an appeal to the Small Claims Division of the Board of Tax Appeals. This must be filed within 30 days of the “Mailing Date” listed on the decision letter.  Legal counsel is not necessary, and the taxpayer can represent themselves in matters before the Small Claims Division. It is helpful to have comparable sales available or a recent appraisal of the property to share with the Board if it is helpful to your case. A hearing date will be scheduled within 60 days of the date the appeal is received by the Small Claims Division.
  2. Filing a Supplemental Informal Appeal. If a taxpayer believes the result from the hearing officer at the initial level of appeal is not acceptable, the taxpayer also has this option. When choosing to file a Supplemental Informal Appeal, the taxpayer must engage a 3rd party, Independent Kansas Certified General Appraiser or a Kansas Certified Residential Real Property Appraiser to determine the value of the property as of January 1, 2025. This appraisal must be submitted to the county assessor’s office within 60 days of the “Mailing Date” listed on the decision letter. If the appraisal is submitted timely, the county has 15 days to review the appraisal. At that time, the county must either accept the appraisal submitted or indicate to the taxpayer they will be engaging a 3rd party independent appraisal. Our previous experience on this type of appeal has been very effective as there is no discussion or hearing, simply a review of the appraisal submitted.

Commercial Appeals

If the taxpayer does not believe the earlier decision on the informal appeal was correct, the taxpayer may file with the Small Claims Division of the Board of Tax Appeals (value must be under $3,000,000). A taxpayer does not need legal counsel at this level and hearings are held locally in the Johnson County area and not in Topeka.

If the property valuation is over $3,000,000, the taxpayer must file with the Regular Division of the Board of Tax Appeals. This is a more formal process, usually involving legal counsel and expert witnesses to support the appeal. Unlike the Small Claims Division (which as indicated earlier, schedules a hearing within 60 days of receipt of the appeal), hearings may be scheduled several months from the time the appeal is received. It is very possible a 2025 appeal to the Regular Division of the Board of Tax Appeals may not be heard until 2026.

Another opportunity exists for taxpayers in the State of Kansas. If no appeal was filed when the valuation notice was initially issued, the taxpayer has the right to pay the taxes under protest. This allows the property owner to go through the process as though an appeal was filed in the Spring of 2025. The taxpayer may pay the 1st half OR 2nd half taxes under protest, but does not have to do both. Additionally, if the taxpayer chooses to pay the entire amount of the tax at one time, the payment under property form must accompany the single payment.

Confusing??? You bet – please let us know if we can be of assistance for your Kansas needs. We will make sure you are aware of all options available to you in your pursuit of a correct property tax valuation.

Swartz + Associates, Inc. (SAI) is a full service property tax firm specializing in the review, analysis and appeals of real and business personal property tax valuations. If you need help with your property taxes, give us a call!

April Flowers Bring May Celebrations

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By Donald Swartz, President

Last week, Katy True and I went to Las Vegas to meet with our Indurante Team to “celebrate” our end of filing season (even though we are still finishing a significant number of Texas property tax filings due on the 15th 😊). We had made the decision to move this event from our holiday party in December to May based upon a number of employees unable to attend our annual December Top Golf get-together.

April Flowers Bring May Celebrations April Flowers Bring May Celebrations

Indurante Employees

I don’t share enough about our Indurante employees. They simply are hardworking, client serving and results oriented. Each year, we file property tax returns for approximately 30% of the private railcar fleet and over 70% of the filings for fleet managers. This is not an insignificant number as our annual railcar count is in excess of 400,000 cars.

The property tax world is a niche business, and as I say to those who choose to listen to me, railcar property tax filings are the niche of niche! September will be the seven-year anniversary of my purchase of Indurante & Associates, Inc. and I am so pleased to be able to say my managers and director have been with me throughout the journey; making sure everything is accomplished on time and with great accuracy.

April Flowers Bring May Celebrations April Flowers Bring May Celebrations

To Noelle, Mark and Kristen, thank you for your efforts. Additionally, Emma has been with the company the past seven years, working behind the scenes and proudly proclaiming her answer to my weekly question of what she is working on, “Texas, Texas, Texas.”

We added Tyler to the mix at the start of the year and her willingness to learn and become involved has been incredibly valuable and for the first time, we worked with UNLV to hire a business student to assist during the filing season. Many thanks to Dakarri for his service while getting ready to receive his accounting degree this month.

All in all, I am extremely pleased with the efforts and results by everyone.

Speaking of employees…

April Flowers Bring May CelebrationsKeith Sherman, one of our business developers located in Dallas, recently was awarded the inaugural Engagement Award from the SMU Cox School of Business.

Keith is a mentor at the School of Business Career Management and was incredibly surprised and honored to receive this prestigious award. I have been a big fan and supporter of civic involvement over the years, and Keith’s passion for mentoring young students and involvement in the community fits perfectly into the ideals we try to live by each day.

Congratulations, Keith! This is well deserved, and we are all proud of you and of your commitment to the next generation and making the community stronger.

Swartz + Associates, Inc. (SAI) is a full service property tax firm specializing in the review, analysis and appeals of real and business personal property tax valuations. If you need help with your property taxes, give us a call!

Does Old-School Marketing Still Work? We Believe It Does!

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By Katy True, Operations Manager at Swartz and Associates

Does Old-School Marketing Still Work? We Believe It Does!In today’s digital jungle, where email inboxes overflow and every screen flashes ads faster than you can say “skip,” Swartz and Associates, Inc. (SAI) stands firmly by the belief that the personal touch of old-school marketing still holds its charm—and power.

Take our favorite retro strategy, Direct Mailers.

Yes, we’re talking about actual paper. Here’s how it works: We craft a one-page letter detailing how property valuation and taxes might impact owners, while offering our expert assistance to ease the burden. We research the market, refine our target list, and assemble our direct mailers like marketing pros—writing, printing, signing by hand, stuffing envelopes, and sending them off with a personal touch that screams, “We care!”

And guess what? The ROI is worth celebrating. Some owners contact us immediately after receiving the letter (instant gratification!), while others tuck our little gem away for years (yes, years), pulling it out when property values surge and calling us like we’re their long-lost allies.

Then there’s radio advertising, another timeless tactic we love.

Currently, we’re spreading the word in Kansas City, Des Moines, and Eastern Iowa, with past forays into the Las Vegas airwaves to dip our toes into newer markets. It’s amazing how many new clients we’ve gained from this classic channel—people hear us on their commute, probably mid-coffee sip, and suddenly realize they need our expertise. And friends and family chiming in with “Hey, I heard your ad!” is an added bonus.

We occasionally mix in a dash of modern with mass email campaigns, but these are mostly reserved for keeping our existing clients in the loop—updating them on market trends, notifying them about important changes, or simply reminding them that we’re just a phone call away for all their property valuation needs.

With dozens of clients secured through these “old-school” methods, we’re here to say: the classics still work. Direct mailers and radio ads might not be the flashiest tools in the marketing toolbox, but when it comes to effectiveness, they’re solid gold. Sometimes, the tried-and-true methods are just what you need in a high-tech world. Old-school marketing—it’s vintage, it’s classy, and it works.

Swartz + Associates, Inc. (SAI) is a full service property tax firm specializing in the review, analysis and appeals of real and business personal property tax valuations. If you need help with your property taxes, give us a call!

Heads up Missouri taxpayers: 2025 is a reassessment year!

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By Charles Young, Manager at Swartz and Associates

Heads up Missouri taxpayers: 2025 is a reassessment year!Every odd year, county assessors in Missouri may adjust property values – whether increased, decreased or unchanged – to align with market conditions. Fair market value is the price a willing buyer would pay a willing seller, neither being under any compulsion to buy or sell, and both having reasonable knowledge of relevant facts.

Missouri law requires assessors to use generally accepted appraisal practices.

To determine the fair market value of commercial properties, the income capitalization approach, comparable sales method, or replacement costs minus deprecation can be applied. Typically, comparable sales are used for residential properties.

Many homeowners in Jackson County, Missouri, were frustrated by the significant increases in home values during the 2023 reassessment year. Now let’s throw a lawsuit into the process! The Missouri State Tax Commission has ordered Jackson County to roll back 2023 all property assessment increases that were greater than 15 percent — roughly three out of four properties. At this point, it is unclear how this situation will be remedied as the county is still considering additional steps for the 2023 assessment year.

As for the current reassessment, according to a release from County Executive Frank White, property tax assessment increases for properties in Jackson County will be capped at 15 percent for 2025.

If you are a property owner in Jackson County, that is quite a bit to put your arms around. Swartz & Associates, Inc. is ready to guide you through these turbulent waters as we have decades of experience working with the county assessor’s office. Please contact us should you have any questions or would like to learn more about your options.

Swartz + Associates, Inc. (SAI) is a full service property tax firm specializing in the review, analysis and appeals of real and business personal property tax valuations. If you need help with your property taxes, give us a call!

Traveling is an important part of our work at Swartz + Associates

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By Gary A. Stone, ASA, Manager at Swartz and Associates

It is said, “the world is a book and those who do not travel read only one page”. Many of my fondest memories are when I traveled, especially with my family. I think this is true for many of us, which is why we share those memories with others on Facebook or Instagram. Each of the pictures is a story that we love to relive.

My travels have led me to such places as Mexico with my wife, Disneyland with my kids, and eating lunch on top of a waterfall while canoeing through the Boundary Waters of Northern Minnesota. Each one of those trips I can hold in my heart with fond memories.

Traveling is an important part of our work at Swartz + Associates

Traveling is also an important part of our work at Swartz + Associates.

Traveling enables us to learn the story of a property by touring the facility, meeting with our clients, and understanding their operations. It is that story that enables us, as valuation professionals, to provide a thorough picture of our work.

Our trips have led us to facilities like an ice cream factory in Michigan, down a coal mine in Kentucky, a large reverse osmosis water purifying plant in West Virginia, and on top of a grain elevator in Florida (yes, Florida is much more than just beaches and Disney World). These are the experiences we draw from when we conduct our analysis of our clients’ properties.

Wanderlust is defined as a strong desire to discover, travel, and explore, which perfectly captures the curiosity of what drives me. I find that traveling for work is one of the most rewarding aspects of my job. Each journey strengthens my commitment to delivering exceptional service to our clients. Exploring the world fuels both my personal and professional growth.

Traveling is an important part of our work at Swartz + Associates

Swartz + Associates, Inc. (SAI) is a full service property tax firm specializing in the review, analysis and appeals of real and business personal property tax valuations. If you need help with your property taxes, give us a call!