Personal Property Tax Consulting

It is not uncommon for taxpayers to overlook personal property tax as a source of potential savings. Oftentimes, other taxes command more time and attention from the tax team and personal property taxes are considered only from a maintenance or compliance perspective. However, the personal property tax reporting and assessment process can be complex. Our professionals are singularly focused and equipped with decades of experience to identify all opportunities and eliminate all errors in the process.

Our personal property tax consulting service is a multi-step process that involves:

Compiling all relevant data needed to file complete and accurate returns.

Reviewing each asset to ensure an appropriate classification for reporting and eventual assessment.

Considering all asset uses (i.e., manufacturing, pollution control, etc.) for favorable alternative report classification.

Reviewing inventories for any needed adjustments and determine appropriate classification for reporting.

Conducting site visit(s) as necessary to identify any ghost assets – assets on the ledger but longer physically on-site.

Pursuing assessment notices and workpapers for review.

Initiating informal conversations with assessing officials regarding valuation differences.

Pursuing formal assessment reductions, if necessary.

The above list is not exhaustive and additional steps may necessary, but our team will look for every opportunity to ensure that your personal property tax liability is fair, equitable and minimized.

Personal Property Successes

$6,000,000+ Saved

A large-scale deployer of telecom infrastructure throughout the U.S. engaged INTAX to review current reporting practices in an effort to minimize the personal property tax liability throughout their network. Our team collaborated with individuals from various departments such as tax, accounting, engineering, mapping, finance and legal to develop an approach to reporting that captured the obsolescence that existed in the network. Through detailed documentation explaining and supporting our requested changes, we were able to achieve significant valuation reductions working alongside the assessing officials. Total annual property tax savings exceeded $6,000,000.

$1,000,000+ Saved

A Mississippi based telecom provider engaged INTAX to minimize their overall personal property tax liability. Our review identified a large portion of assets and inventory being reported to the incorrect jurisdiction. In many instances, balances were reported to a jurisdiction that assesses personal property, when the correct jurisdiction would have considered it exempt. After correcting the reporting location, adjusting depreciable lives, and eliminating ghost assets from the listing, the total annual property tax savings exceeded $1,000,000.

$1,000,000+ Saved

A Michigan based apparel manufacturer with locations throughout the U.S. engaged INTAX to minimize their personal property tax liability for all locations. Among other findings, we identified machinery & equipment that warranted a more aggressive reporting and assessing methodology as well as a significant personal property tax exemption available. Total annual personal property tax savings exceeded $1,000,000.