Ever heard of the PILOT program?
Thank you for reading this post, don't forget to subscribe!That’s an acronym for “Payment In Lieu Of Taxes” and it’s not a myth. It exists… and I take advantage of the amazing tax benefits.
Why?
Because I provide clean, safe, affordable housing. Beyond that I also provide jobs. Housing and jobs are only two of the criteria that you can provide that allows you to lower your tax bill and keep more money in your pocket!
Every state and county may be a little different, but there are tax incentives available to you as a real estate investor and property owner than you might know.
Think property taxes aren’t a big deal? Think again.
According to a recent study by Zillow, homeowners in parts of New Jersey shell out 45% more in property taxes than those in, let’s say, Bibb County, Alabama! So why the tremendous disparity?
Read the story and learn why. Also check out which counties in America command the highest in property taxes. I grabbed the link for you here…
Chances are that if you own property in any of the high-priced counties named in the article, you’d want to know how to cut back on them, right?
Or maybe you’re a billionaire and you don’t have to concern yourself with paying property taxes. (They have lots of ways to get around paying property taxes legally, you know.)
If you want to learn why they don’t pay property taxes, read this piece I found…
LINK: https://www.citylab.com/housing/2015/05/why-billionaires-dont-pay-property-taxes-in-new-york/389886/
I like this article because it features information about the Nordstrom Tower. (Anyone who knows me also knows I love Nordy’s… especially for their shoes and fantastic customer service!)
But what if you’re not a billionaire… or even a millionaire?
Are there states in which you might want to avoid owning property? Maybe. Take a look at the list in this article and figure out if you might already be in over your head when it comes to the price of property taxes…
If you still aren’t convinced that where you invest makes a difference when it comes to the price of property taxes, you need to read this next article. It talks about who pays the most in property taxes. Let me give you the short story…
The article says that “the highest tax rates are on people who have owned between five and 10 years and 10 to 15 years.” They are talking about real estate investors. That’s you!
Read the article now…
Instead of worrying about paying high property taxes or avoiding states and counties where taxes are really high, wouldn’t it be better to learn how to avoid paying property taxes altogether… or at least cut your property tax bill way, way down?
Of course it would! But this is one of the MOST overlooked and underutilized ways of saving money and giving your cashflow a big boost.
So, how do you do it? How do you actually lower or completely get around paying your property taxes legally?
Glad you asked.
I found this handy article to walk you through the process. It comes complete with the application you need when applying for the PILOT Program. (Remember that PILOT stands for “Payment In Lieu Of Tax.”)
LINK: https://growth-engine.org/project-assistance/inventives/payment-in-lieu-of-tax-incentive/
Well, I tripped you up just a little. (Wanted to see if you were paying attention.)
This one is for Memphis and Shelby County! However, if Tennessee has such a program, I’m betting the counties where your properties are located just might have one, too.
I’m interested in Memphis incentives, because that’s where I have lots of units of property. But guess what I don’t have? Property taxes to pay! My team and I make sure that I get all the tax incentives I am legally entitled to take.
(In fact, you might be surprised to learn that I don’t have to pay property taxes at all currently.)
If you don’t bother to learn what incentives are available to you, or if there is a PILOT program open to you where you have properties, you may as well stand in front of an open window, peel away hundreds or even thousands of dollars from your wallet and toss them out into the wind. Because that is exactly what you’re doing…
But here’s the deal. It’s not enough to simply learn about the incentives. You have to actually apply for them and then take advantage of them.
For now, I’ll leave you with a homework assignment: Go RIGHT NOW and do a search on the PILOT program in your neck of the woods. If you are a Cashflow CORE Member, I want to hear what you find out on our private Facebook group page!
If you’re not a CORE Member yet, why not give it a go? The first month is just a buck!
