Case Study: Property Tax

Reducing Valuations for Underutilized OFS Equipment

Client:

A small private oilfield service equipment company engaged Merit to prove the diminished value of underutilized and idle assets.

Results for client

72 Percent

Reduction in Tax Liability

$2.2M

Reduction in Overall Value

Challenge:

  • Client was effectively generating no income from equipment.

  • Client needed to reduce a potential tax liability of nearly $125,000 to support its few remaining employees.

Merit Action Plan:

  • Coordinated with client to determine correct valuation for relevant assets.

  • Provided detailed information to taxing jurisdictions to support claim of diminished asset valuations.

  • Lowered asset values to more reasonable levels through negotiations and appeals.

More Rewards of Merit