Tax law leads to towering savings for big-building owners

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Ron Baselice/Staff Photographer

The owners of Williams Square in Irving’s Las Colinas purchased the office complex in 2012 for $226 million, then persuaded a judge to reduce the taxable value to $147 million. As a result, the company could save more than $3.5 million in taxes annually.

After a big real estate deal in Dallas County, the legal maneuvering has almost become routine: A company that just spent millions of dollars on a commercial property then argues, for tax reasons, that it grossly overpaid.

That’s what happened with Williams Square in Las Colinas. An Atlanta investment firm bought the office complex in 2012 for $226 million. Then its lawyers went to work. After more than a year of legal wrangling, they persuaded a judge to reduce the taxable value of Williams Square to $147 million. That could save the company more than $3.5 million in taxes annually.

Such a result may be startling to homeowners who see their appraised values rise year after year. But it’s nothing new to the owners of some of the area’s largest buildings. They’ve been successfully challenging their appraisals for years, aided by a provision of state law that was written by a prominent property tax attorney.

In 2013, commercial property owners in Dallas County shaved more than $4.8 billion off preliminary tax appraisals, according to data analyzed by The Dallas Morning News. That’s more than seven times the reduction secured by residential property owners.

Commercial property owners and their consultants say they’re simply working to make the property tax system fair. But many appraisal districts and local governments believe the opposite is happening. They say the wealthiest property owners are receiving major breaks, while the tax burden for homeowners climbs.

More at http://www.dallasnews.com/business/business-headlines/20140426-tax-law-leads-to-towering-savings-for-big-building-owners.ece .

[font color=green]I used to work in the tower on the left. The tax break that Williams Square received may be an underlying reason why the rental rates at apartment complexes in Irving are going through the roof. This is another example of corporate welfare.[/font]

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