1 – Companies Think the Personal Property Declaration is a Simple Accounting Procedure.

Property tax valuation and law has little to do with accounting. As it implies, ad valorem taxes has everything to do with valuation. Valuation calls for expertise in appraisal methods not accounting.

2 – Companies Use the Assessor’s Depreciation Tables.

You don’t have to use the assessor’s arbitrary cost depreciation tables, and if you do, it virtually guarantees you overpay.

3 – Companies Report Non-Taxable Assets and Ghost Assets.

In our experience, tangible personal property tax returns have been filed with capitalized assets that are not reportable and/or taxable as well as fixed assets that have been physically disposed. “Ghost assets” are generally a result of the physical disposition of assets where the accounting department depreciates the fixed asset to zero and never removes the asset from the fixed asset ledger. Although the asset for GAAP purposes may have a book value of zero, most property tax jurisdictions have a residual value in their depreciation tables of 20%. Therefore although the asset does not exist, the asset is valued for property tax at 20% of the cost. In addition, manufacturing and industrial companies should have both real and personal property reviewed together in ensure against areas of double taxation.

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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