Better Position Your Business for Property Tax Savings With Property Tax Outsourcing
Property taxes represent one of the largest recurring fixed expenses businesses face. The maze of state laws is complex and compliance is difficult and time consuming. Real property is taxed in all 50 states, personal property is taxed in approximately 40 states, and more than 10 states impose property tax on inventory. What’s more, asset classification, valuation methods, value definitions, and exemptions vary by taxing authority. The opportunity for improved compliance and property tax savings may be paramount.
Crowe Horwath LLP monitors conditions and changes in tax laws to help position your business for potential tax savings.
Crowe can help you review your property tax assessments and filings to help you determine if you are paying minimal property tax in each taxing jurisdiction. Our real and personal property tax (ad valorem tax) services include the following:
Real and Personal Property Tax Reviews
- Identify and appeal overassessed real estate and personal property;
- Test assessments for validity and fairness;
- Analyze whether obsolescence – technological, functional, or economic – is a factor that has been properly considered by the jurisdiction;
- Review rules of any given jurisdiction to determine taxable categories of fixed assets;
- Establish a good working relationship with jurisdictions;
- Maximize use of available exemptions and credits, such as pollution-control exemptions; and
- Complete planning as it relates to your property tax calendar.
Additional Property Tax Consulting and Services
- Cost segregation studies: Help place costs associated with a purchased, constructed, renovated, or expanded facility into their proper classifications for federal income tax depreciation purposes and increase cash flow.
- Purchase price allocation valuation services: Allocate value strategically in the context of financial reporting requirements, in consideration of existing property tax rules in a given jurisdiction.
- Property tax appeals: Assist in disputes with assessors over the taxable value of real or tangible personal property and, if necessary, help file an appeal in the appropriate judicial system.
- Personal property tax compliance services: Locate opportunities for tax reduction, prepare multistate property tax filings, and process tax bills efficiently using property tax management system software to help reduce risks and improve efficiency.
- Business incentives and tax credits: Help to achieve savings on planned acquisitions, facility consolidations, expansions, business contractions, equipment rebuilds, employee expansion, research and development, and “green” initiatives.
- Cost-reduction opportunities identification: Location costs, government incentives, alternatives to traditional financing, construction cost containment, and credits and incentives.
- Property tax abatement procurement and compliance;
- Fixed asset inventories, reviews, and planning;
- Audit defense advocacy and appeals; and
- Ghost asset reviews.
Property tax outsourcing can lead to tax reductions of current property tax costs that help improve earnings before interest, taxes, depreciation, and amortization (EBITDA). With Crowe’s turnkey, limited time-commitment property tax services, your organization may be in position to reduce its overall tax burden.