Historically, state and local taxes on commercial real estate developments and their managers and investors have been fairly straightforward. Obviously, real property taxes and, in some cases, personal property taxes applied to these projects. Property managers rarely considered sales and use taxes, since real estate construction and related services usually were not taxable.
The state and local tax environment for real estate developers has changed gradually yet dramatically in recent years. New taxes and enforcement efforts by state and local governments require a heightened awareness on the part of commercial real estate businesses. Failure to adequately plan for these taxes can significantly impact a project’s rate of return. These taxes and enforcement efforts also can lead to significant exposure for tax, interest and penalties.
This article, which originally appeared in Development magazine spring 2014, published by NAIOP, the Commercial Real estate Development Association, will help you understand the dramatic changes.
Read this article: State and Local Taxes Pose a Growing Risk for the Real Estate Industry >
For more information on this topic, or to learn how Baker Tilly tax specialists can help, contact our team.
The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.