Rewards of Merit: Property Tax

Slashing a Public E&P’s Tax Liability by Two-Thirds

Client:

A small public E&P company engaged Merit to reduce its tax liability, facing the twin challenges of rapidly depleting wells and increasing property tax assessments.

Results for client

66%

Reduction in Tax Liability

Challenge:

Client’s wells were in Louisiana, where assessments follow a cost schedule that tends to increase over time regardless of revenue or profitability.
Client’s production levels had declined to the point where property tax liabilities consumed most of the gross income from wells.

Merit Action Plan:

Worked with client’s team and local assessor’s office to acquire data to support the case for reduce assessment.
Presented findings to property tax office that demostrated an overall value reduction of $856,600.

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