Case Study: Property Tax

Reducing Valuations for Underutilized OFS Equipment


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


Reduction in Overall Value


  • 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