Rewards of Merit: Property Tax

Differentiated Approach to Achieve Fair Valuation

Client:

A large oil and gas operator had significant Louisiana holdings that were overvalued by the state. However, local parishes were reluctant to allow the appropriate reductions.

Results for client

$3.7M

Assessment Reduction

$410K

Annual Tax Savings While Avoiding Litigation

Challenge:

  • Client’s assets were assessed unrealistically under state methodology, which, ignores well economics.
 
  • Client’s previous consultant lacked expertise and relationships critical to negotiating obsolescence reductions for underperforming assets.
 
  • Previous consultant initiated long and costly litigation against parishes to secure reductions.

Merit Action Plan:

  • Maintain strong working relationships with parishes throughout Louisiana.

     

  • Through our standard tax preparation process, Merit identified wells that clearly qualified for obsolescence reductions based on chas flow.

     

  • Worked constructively with assessors, providing ample supporting documentation.

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