Rewards of Merit: Property Tax

Minimizing a Petrochemical Facility Tax & Asset Valuation


A petrochemical facility with a significant presence in the county was unhappy with their previous provider and wanted to change.

Results for client


Annual Tax Savings


Reduction in Plant's Assessed Value Despite Inflation


  • 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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