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We looked at a commercial property tax loophole that costs small business owners thousands of dollars. Instead of selling a property outright, a commercial property owner will sell a property as a “drop LLC.” In other words, they will spin off the property into a separate business, then technically they are only selling the business and not the property. No conveyance fee is due, and the County Auditor often doesn’t even know what the property sold for, because the deed doesn’t change hands.