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Personal Property Tax Recovery
Assertive offers considerable experience in valuation techniques issues and negotiations
dealing with large industrial properties which often present a formidable task for both
corporate tax departments and local tax authorities. AI’s personal property review process
helps clients to properly identify the existences of assets reported on tax returns, to
classify assets to take advantage of the most favorable treatment available, and to analyze
the values returned by assessing officials to determine if they are fair and reasonable.
Personal Property Tax Review Process
Review documentation to identify issues, ascertain probability of success, determine recovery opportunities and estimate time requirements
Research property tax laws, appraisal valuation approaches, prior court case findings, Revenue Taxation Code, industry treatises, and other information sources
Evaluate information gathered to determine overall approach, probability of success, and time requirements
Negotiate with local county personnel, presenting the issues, reduction requests, and supporting materials in a professional but relatively informal setting
Compare reductions offered with likely reduction achievable through presentation to the Assessment Appeals Board
Present the facts and issues supporting the requested reductions to the local Assessment Appeals Board. Appearances take place after informal negotiations have been exhausted and there is the reasonable likelihood of achieving better results in a formal setting
Follow through until refunds have been received, audits are completed, or future assessment reductions are verified
Personal Property Tax Recovery Benefits
Assertive works in partnership with many corporations to successfully reduce personal
property tax liabilities. Our collaborative efforts have yielded significant saving for many
Fortune 1000 corporations. Ask about how we can work with you to reduce your taxes and share
in the savings.
Project Cost Justification
Assertive, saves large corporations millions of dollars through fixed asset systems, physical
inventory, and reconciliation services. Large multi-national corporations often have large
amounts (20-25%) of physically disposed fixed assets on their personal property tax rolls.
Assertive's services and systems identify these assets for removal from the clients tax and
insurance records saving hundreds of thousands of dollars each year. Equifax, Inc. saved
$700,000 this year in personal property taxes as a result of working with Assertive Industries, Inc.
The example below is for a manufacturing plant with $80,000,000 in fixed assets and
demonstrates potential savings a physical inventory and reconciliation could achieve for each
plant based on overstatement of assets by 25%. Example is for demonstration purposes and
clients results may vary.
| Missing Assets |
|
$20,000,000 |
| Purchase Cost |
|
$20,000,000 |
| Depreciation Factor |
|
65% |
| Fair Market Value |
|
$13,000,000 |
| Assessment Rate |
|
40% |
| Assessed Value |
|
$4,200,000 |
| Tax Rate |
|
3.5% |
| Overpaid Taxes |
|
$147,000/year |
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