Personal property taxes are more complicated than simply running an asset report by year and filling in the blanks on the Business Personal Property Declaration.Our research and appeals have proven that assessor can’t support the depreciation schedules as being equal to market value. We argue, and the law agrees, that cost less an arbitrary depreciation value does not equal market value.Majority of depreciation tables developed for use by the taxing jurisdiction in determining the statutory value or “fair market value” do not allow for functional and economic obsolescence and therefore a large majority of tangible personal property tax assessments will be in excess of “fair market value”. We have provided an example of this in a comparison of the Alabama depreciation tables and the Marshall Valuation Service untrended depreciation tables. The variance should be trending. As you will see it is not and therefore leads to large over valuations of tangible personal property.

In addition, we have discovered that many companies usually report all costs from their fixed asset ledgers which generally include “ghost assets”. Ghost assets are those assets which have been disposed physically and not removed from the fixed asset ledger. A company capitalization policy can also create this issue during renovations and asset relocations.

We can quickly do a checkup on your personal property and real property and tell you if there is an opportunity to minimize your property tax liability. We’ll examine your fixed asset depreciation ledger and the personal property returns and report back to you areas of exposure and areas of savings opportunity.

Silver Oak Advisors’ founders bring over 40 years of Big 4 and Industry property tax experience. Silver Oak was formed to provide taxpayers in need of State and Local Tax (SALT) assistance, former Big 4 and industry experienced professionals with specific industry and/or property expertise in addition to working knowledge and relationships with the specific taxing jurisdictions.

Contact us for a no-cost/no-obligation review of your real and personal property assessments. Silver Oak Advisors does not utilize staff in these areas. These no-cost/no-obligation reviews are handled by our Directors. We believe you deserve 40 years of Big 4 and industry experience in Complex and Industrial properties and a history of results.

We are working Directors allowing us to provide a higher level of service at a cost effective rate, passing on the savings to you. Contact us for more information.

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