Rewards of Merit: Property Tax
Minimizing a Petrochemical Facility Tax & Asset Valuation
Client:
A petrochemical facility with a significant presence in the county was unhappy with their previous provider and wanted to change.
Results for client
$400K
Annual Tax Savings
10%
Reduction in Plant's Assessed Value Despite Inflation
Challenge:
- Client wanted an experienced property tax provider that could review the plant’s fixed assets as well as the previous tax provider’s work to recognize tax minimization opportunities.
Merit Action Plan:
- Review the chemical plant’s asset listings for out-of-service, underutilized, and intangible assets while categorizing all non-value-added costs and maintenance spending for the client’s examination.
- Determined the appropriate service life and amount of physical depreciation for each asset.
- Identified the applicable forms of functional and economic obsolescence for the plant and the industry.
- Discuss findings with plant controller and management.
- Prepare the required returns and negotiate with a taxing representative.
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