Personal Property


Generally, a tract of land and its improvements are appraised together and assigned a single value. Texas appraisal districts, however, are permitted to divide a tract and its improvements into separate components, each with its own tax account number, and appraise them individually.

The Texas Supreme Court held as a matter of law that appraisals of individual accounts may be challenged as unequal. The District argued that the “property” referred to in the statutory provisions authorizing appeal from property tax valuations is not the property in the separate tax accounts but rather the entire refinery. The Supreme Court rejected this argument, agreeing with Valero that nothing in the applicable statutory provisions requires a taxpayer to challenge all the appraisal accounts used to appraise its property. On the contrary, the Tax Code defines property as “any matter or thing capable of private ownership.” Each part of Valero’s refinery covered by a tax account was property within the meaning of the Tax Code. Accordingly, the District Court had jurisdiction of Valero’s appeal. The Court reasoned that because the District had the discretion to appraise Valero’s property by assigning it to various tax accounts, it could not argue that Valero’s challenge to the appraised value of some of those accounts was somehow deficient.

Florida preliminary real property and tangible business personal property are now available for your review. In the last couple of years, Florida property appraisers have made reductions in valuations during their annual review process. You should have your assessments reviewed regardless to ensure the reductions made are in line with fair market value. There is no cost for this service.

Silver Oak Advisors’ founders bring over 40 years of Big 4 and Industry property tax experience. Silver Oak is based in Atlanta and was formed to provide taxpayers in need of property tax 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.

Manufacturing taxpayers currently under a Fee-In-Lieu Tax Agreement (FILOT) may be making excessive FILOT payments.  This is due to either (1) The taxpayer is not taking advantage of all of the benefits entitled under the FILOT or may be making erroneous payments, or (more…)

Real Property

The Machinery Act (General Statute 105, Subchapter II) provides the framework for the listing, assessing, and appraising of both real and personal property in North Carolina. Under G. S. 105-286, all counties are required to conduct a reappraisal at least every eight (8) years. The majority of the counties conduct their reappraisals on this time frame, although a growing segment of counties conducts reappraisals on a four-year cycle. During each year at least 11 of the 100 counties are conducting a county wide reappraisal. A county may choose to conduct its reappraisal “in-house” utilizing their own appraisal staff, by hiring an outside reappraisal firm, or by employing consultants to assist their staff appraisers.

REAPPRAISAL SCHEDULE

During the years that a general reappraisal is not made in the county, G. S. 105-287 is the operative statute for changing any property values in the county. The assessor is limited to certain circumstances in which he may change the value of real property. These include correcting a clerical or mathematical error, or correcting an appraisal which resulted from a misapplication of the schedules used during the county’s last general reappraisal. Also, the assessor may increase or decrease the appraised value of real property, to recognize a change in value caused by factors other than the following: normal physical depreciation of the improvements, economic conditions affecting the county as a whole, or minor improvements to the property such as repainting, landscaping, terracing etc.

Personal Property

All taxable personal property in North Carolina is appraised at its true value in money. The two main exceptions are inventories owned by manufacturers, retailers, wholesalers, and contractors as well as non-business personal property. These types of personal property have been exempted by statute in North Carolina. There are other exemptions for different types of personal property where the ownership and use determine the exempt status. These would have to be looked at on an individual basis. Personal property in North Carolina is appraised each year as of January 1 at its true value in money. The personal property owner should list his or her personal property with the correct county by January 31st. Extensions for listing personal property may be granted by the County Assessor up to April 15 upon a timely request. The request for extension to list must be made before the end of the regular listing period.

The counties in North Carolina use a trending method to appraise personal property. Counties request taxpayers to list their property at original cost by year of acquisition. The counties then trend the original cost up to reach current replacement cost new and then apply a straight line depreciation schedule to reach market value. Most of the counties use trending schedules developed by the North Carolina Department of Revenue.

The appraised value of any personal property may be appealed to the local county board and then to the North Carolina Property Tax Commission.

Silver Oak Advisors’ founders bring over 40 years of Big 4 and Industry property tax experience. Silver Oak is based in Atlanta and was formed to provide taxpayers in need of property tax 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.

Tangible Personal Property compliance deadline for Florida is April 1st. Florida Administrative Rule allows an exemption for “pollution control” equipment. All equipment, facilities or materials constructed or acquired primarily for the control, reduction or elimination of air or water pollution are exempt from property tax. While many companies do claim some pollution control equipment, majority of those reviewed did not claim all qualifying property.

Silver Oak Advisors offers a 3-phase program beginning with feasibility followed by identification and certification of pollution controlling assets with the proper authorities. The final step is verification which includes providing exemption documentation and assisting the client with filing exemption applications.

Our experienced property tax professionals possess jurisdiction-specific expertise along with the knowledge of specific pollution control exemptions. We review your fixed asset register along with descriptions. In addition, we review asset appropriation justifications to identify qualifying projects and equipment, interview your key facility personnel, and tour facilities to completely understand the process and nature of the property. We then document the qualifying property, complete all necessary paperwork, and file the exemption(s) with the appropriate tax jurisdiction on your behalf. We ensure the exemption is ultimately secured for you. And, we provide you with a report documenting our findings and results so you can apply exemptions going forward. You will realize an indefinite prospective benefit when pollution control exemptions are maximized.

Silver Oak Advisors’ founders bring over 40 years of Big 4 and Industry property tax experience. Silver Oak is based in Atlanta and was formed to provide taxpayers in need of property tax 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.

Development cost of software or any modification cost to software, whether done internally by the taxpayer or externally by a third party to meet customer specific needs, is excluded and should not be reported regardless of year of acquisition. This specialized software cost should be deleted if reported previously. Software purchased or licensed from an unrelated entity and capitalized on a taxpayer’s books must continue to be reported.

http://www.ncleg.net/Sessions/2013/Bills/Senate/PDF/S490v5.pdf

Silver Oak Advisors’ founders bring over 40 years of Big 4 and Industry property tax experience. Silver Oak is based in Atlanta and was formed to provide taxpayers in need of property tax 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.

Businesses must comply with the rules contained within the final regulations for tax years beginning on or after January 1, 2014. The wide-reaching scope of these regulations will impact real and personal property of the vast majority of businesses and create unique planning opportunities as well as pitfalls. The key to a successful implementation of the final regulations will be to start the planning process prior to the January 1, 2014 effective date.

Fixed asset capitalization policies and the expensing of certain costs can have an adverse impact on property tax reporting and may raise audit concerns. A comprehensive understanding of both the regulations and the company’s policies will allow for effective planning, a smooth transition, and maximization of tax savings opportunities.

All taxpayers who incur expenditures to acquire, produce, or improve tangible property will be impacted by the final tangible property regulations. Though taxpayers have until January 1, 2014 to become compliant with these regulations, many taxpayers are considering the advantages of adopting certain provisions of these regulations at an earlier date. At a taxpayer’s discretion, the final regulations, or the former temporary regulations, may be implemented retroactively as early as January 1, 2012. Tax savings and planning opportunities exist for certain taxpayers to adopt these procedures earlier than required, by amending prior year tax returns to take advantage of elections provided in the final regulations. The IRS will be issuing “transition guidance” to assist taxpayers who have elected to apply the regulations for years prior to 2014.

Even if taxpayers wait until January 1, 2014 to comply with the final regulations, planning should take place prior to the start of 2014. All taxpayers affected by the regulations should review their current accounting methods to determine if they are in compliance with the final regulations. It will be advantageous for taxpayers to have a complete understanding of current policies and to ensure that certain procedures are in place prior to implementation.

The following main areas were impacted as a result of the issuance of the final regulations:

· Materials and Supplies (Reg. 1.162-3);

· Repairs and Maintenance (Reg. 1.162-4);

· Capital Expenditures (Reg. 1.263(a)-1);

· Amounts paid for the acquisition or production of tangible property (Reg. 1.263(a)-2); and

· Amounts paid for the improvement of tangible property (Reg. 1.263(a)-3).

While the final regulations incorporate many elements of prior law, they also include new standards that manufacturers should carefully consider, including:

· A simplified “de minimis” safe harbor, permitting a tax deduction for expenditures of up to $5000 per item, so long as the taxpayer consistently applies a written policy under which such amounts are expensed for book purposes as well. This written policy must be in place as of the first day of the tax year. The regulations simplify the deductibility of bulk purchases, as well as the treatment of transaction costs, such as delivery and installation fees. The $5000 per item limit is only a safe harbor, and does not preclude deductions for larger amounts either under an agreement with the taxpayer’s IRS examination team, or if the taxpayer can show that deducting larger amounts is otherwise permissible.

· A new “book conformity” capitalization safe harbor, allowing taxpayers to capitalize for tax purposes all repair and maintenance costs capitalized for book purposes. Taxpayers, including those making this election, however, should review their repair and maintenance costs expensed for book purposes, because those costs will be ineligible for the safe harbor.

· A special definition of “unit of property” for plant property, such as manufacturing, warehousing, and distribution equipment. Many manufacturers find that properly applying this fact-intensive standard is one of the most critical – and time consuming – steps in implementing the new regulations.

· A “routine maintenance safe harbor” that may significantly expand a manufacturer’s ability to currently deduct many of the more common (and expensive) cyclical maintenance costs.

· A narrowing of the election to capitalize and depreciate materials and supplies. Under the final regulations, that option is available only for rotable, temporary, or emergency stand-by spares — all others not treated as “de minimis” costs must be accounted for when used (if “non-incidental”) or when purchased, subject to capitalization if expected to be used in an improvement activity.

In addition to these new standards and safe harbors, the final regulations provide numerous additional or revised examples demonstrating the rules for identifying the taxpayer’s units of property and major components, and for distinguishing deductible repairs from capital improvements. Correctly applying these complex and fact-intensive standards is critical in determining that the taxpayer complies with and fully benefits from these important new regulations.

Silver Oak Advisors’ founders bring over 40 years of Big 4 and Industry property tax experience. Silver Oak is based in Atlanta and was formed to provide taxpayers in need of property tax 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.

Brian T Scully, CMI

Director

Silver Oak Advisors, LLC

2700 Cumberland Pkwy NEW LOCATION
Suite 525
Atlanta, Georgia 30339

Toll-Free (877) 352-8616 x701

Direct (678) 403-2084

Mobile (678) 848-2893

eFax (404) 506-9266

mailto:brian.scully

Bio and References

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