Property Tax

Contrary to what many businesses may think, property tax isn’t a fixed operating expense. If the taxable assessed value of either real or business personal property is higher than current fair market value, there are ways taxpayers can challenge the incorrect assessment and reduce their property tax expense.

Challenges

Companies with investments in real and business personal property often lack the internal resources to manage their property tax assessments. This can result in incorrect assessments, inflated tax liabilities and possibly penalties and interest.

The reporting requirements and category definitions for state and local real and business personal property tax reporting also differ greatly from federal income tax definitions, which can result in over-reported costs, duplicate assessments, and assessments on property that could be exempt or nontaxable.

Property tax assessors generally value business personal property based on what companies’ report and the annual reporting forms by themselves often don’t provide enough insight into a business to provide an advantageous assessment.

Who Can Benefit

If a company can answer yes to any of the following questions, it may be able to reduce its property tax assessment significantly:

  • Do you retire assets from your fixed asset records as they’re disposed?
  • Do you ship goods out of state?
  • Do you have idle equipment?
  • Do you have a manufacturing process that’s not fully utilized?
  • Do you have bundled asset purchases recorded in your fixed asset system?
  • Do you track repairs and maintenance in your fixed asset system?
  • Do you have tooling or molds on your books used for offsite manufacturing?
  • Do you have installed equipment that’s mandated by government regulation?
  • Do you have software costs?
  • Do you ship goods out of state?
  • Do you provide your salespeople with display equipment to give to customers?

We Can Help

Our nationally recognized and licensed property tax professionals have a comprehensive understanding of federal, state, and local laws, regulations, and procedures. We can help reduce the risks associated with incomplete or late property tax filings and help you make use of exemptions, abatements, and other tax-mitigation opportunities.

We continuously monitor property tax law and statute changes and precedent-setting case law to help uncover and successfully defend tax positions. We also work directly with tax assessors and officials, reviewing records to determine value differences that occur as a result of market conditions or economic or functional obsolescence.

These relationships, combined with our knowledge and experience, can help you move forward with confidence, allowing you to budget and plan knowing your property tax assessments and payments are advantageous and assessed at fair market value.

Our Services

  • Review of previously filed property tax returns and assessments
  • Property tax compliance, including return preparation and tax bill review
  • Reclassifications of assets to comply with jurisdictional property tax requirements
  • Identification and quantification of obsolete and underutilized assets
  • Identification of potential tax exposure owing to lack of compliance
  • Identification of property tax exemption and abatement programs and opportunities
  • Reviews of assessed valuation of real and business personal property to identify potential assessor errors
  • Representation at audits or appeal hearings with tax authorities
  • Realignments of property records to assist with accurate compliance and property tax forecasting
  • Estimates of property taxes for budgeting purposes
  • Reviews of transactions to identify property tax issues and tax planning strategies
  • Training of personnel to properly prepare returns and identify issues
  • Reviews of all property tax matters related to state tax reduction initiatives and change-of-ownership issues
  • A written report detailing our findings

Primary Contacts