VALORE REGISTRY
How to use · Tax Analysis

How to use the Tax Analysis pack.

Six steps from county tax-bill pull to a 10-year tax projection feeding the UW Workbook. Plus practitioner tips on reassessment-on-sale mechanics, abatement step-down modeling, and the year-2 NOI surprises that come from missing reassessment shock.

Practitioner-built ·Pairs with the AI Team when it ships Q3 2026 ·Human review required on every output

A. Six steps

From download to deliverable
  1. 1

    Download the Tax Analysis pack

    You receive a DOCX questionnaire (lead the diligence call from this) plus an XLSX projection model (10-year tax burden with reassessment + abatement + escalation). Save into the deal folder. Suggested naming: Tax_Analysis_<Deal>_<YYYY-MM-DD>.xlsx.

  2. 2

    Pull the most recent 3-5 years of tax bills

    Source: county assessor / municipal tax collector for the asset address. Capture: tax year · assessed value (land + improvements separately if available) · millage rate · total tax · any abatement / exemption applied. Three years of history minimum to spot a trend; five years to spot a reassessment cycle.

  3. 3

    Enter the assessment + millage projection assumptions

    Inputs: current assessed value · expected reassessment year (most jurisdictions have a cycle — annual / triennial / on-sale) · post-reassessment assumption (% of acquisition price, or market-based reassessment policy) · millage rate growth (historical 3-5yr CAGR) · abatement schedule (if applicable: type, duration, step-up).

  4. 4

    Run the 10-year projection + sensitivity

    The model projects: assessed value year-over-year · effective tax year-over-year · total tax burden cumulative · abatement / PILOT credit schedule · reassessment shock scenarios (low / base / high). The sensitivity tab shows annual tax burden under each reassessment policy scenario.

  5. 5

    Stress-test the abatement / PILOT expiration

    Most CRE tax abatements (HTC, PILOT, LIHTC-adjacent, opportunity-zone benefits) have explicit expiration mechanics. The "Abatement Shock" tab models year-by-year tax burden when the abatement steps down or expires. This is the most overlooked tax line in CRE underwriting — projecting flat taxes through abatement expiration is the most common modeling error.

  6. 6

    Feed the projection into UW + ongoing servicing

    Underwriting: paste the 10-year tax line into the UW Workbook's Operating Assumptions tab. Servicing: pair with the Tax & Insurance Servicer agent (forthcoming Q4 2026) to track reassessment notices, abatement compliance filings, and re-run the projection when assumptions change.

B. Practitioner tips

Things the file won't tell you on its own
  • Reassessment-on-sale states (CA, NY, others): the acquisition triggers a reassessment in the next tax year. Project this as a step function, not as a smooth growth rate. Missing this is a common source of year-2 NOI surprises.
  • Greenbelt / agricultural-use rollback: if the asset was agricultural and is being converted, prior-year tax savings can be clawed back. Check with the county before assuming the rollback is small.
  • Tax bills sometimes lag 6-18 months behind the assessment cycle. The "tax year" on the bill and the "assessment year" are not always the same. Read the bill carefully.
  • Property type matters: in some jurisdictions, multifamily is taxed differently than commercial; opportunity-zone overlays add abatement; brownfield credits stack with other incentives. The questionnaire walks through the major variants.
  • Pull the assessor's methodology note if available. Some jurisdictions publish their income-approach assumptions (cap rates, vacancy, expenses) — knowing those tells you whether to appeal an assessment.
  • Don't use Zillow or public-record databases for current assessed value. Pull from the assessor's own database (most have online lookup). Third-party databases lag and miss reassessments.

C. Scope & limits

What this template is — and is not
  • Not a tax advice tool. Tax strategy (1031 exchange, opportunity-zone structuring, depreciation acceleration) requires a CPA. This model projects tax burden; it does not optimize tax position.
  • Not for transactional tax (transfer tax, mortgage recording tax, mansion tax). Those are one-time at acquisition; this is the recurring property-tax projection.
  • Not a substitute for a tax-appeal advisor. If the analysis suggests an over-assessment, an attorney or tax-appeal consultant runs the actual appeal.
  • Does not handle multi-jurisdiction allocations (a property spanning two tax jurisdictions). Single-jurisdiction analysis only.

D. Pairs with

Components that operate on or alongside this template

  • Tax & Insurance Servicer

    Agent (forthcoming Q4 2026)

    Owns the ongoing tax-monitoring cycle: tracks reassessment notices, abatement compliance, re-projects when assumptions change.

  • Tax Analysis Skill

    Skill (forthcoming Q4 2026)

    Reads the questionnaire + tax bills + assessor data; produces the 10-year projection automatically.

  • Tax Abatement Model

    Template (available now)

    For deals where abatement / PILOT is the central economic driver, the Tax Abatement Model is the deeper sister template.

  • UW Workbook

    Template (available now)

    The 10-year tax projection feeds directly into the UW's Operating Assumptions; do not project taxes inside UW separately.

  • Insurance Matrix

    Template (available now)

    Tax and insurance are usually reviewed together for operating-expense modeling and lender escrow setup.

Next step

Build the full stack around it.

This template is the work surface for a specific AI agent + skill workflow. Open the Company Builder and assemble the matching agents when they ship Q3 2026.

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